What’s a mortgage decision in principle?
It lets you know if you can borrow what you want before you do a full mortgage application. It’s also known as:
- a mortgage in principle
- an agreement in principle
- a mortgage agreement in principle.
Because a decision in principle (DIP) gives you an idea of what properties you could afford, it’s a great place to start your homebuying journey. It also shows estate agents you’re a serious buyer who should be able to afford the home you’re interested in.
All these things help massively when you make an offer for a home. And a mortgage decision in principle also gives you a head start when you make a full mortgage application later.
Getting this decision in principle is free and you’ll get your decision instantly. What’s more, there’s no obligation to get a mortgage with us afterwards. You don’t even need to be a Santander customer to apply.
So, if you’re serious about buying your first home, moving home or remortgaging, getting a decision in principle is an easy decision to make.
How do I get a decision in principle?
It’s simple. You can get your decision in principle online.
Just enter a few details like:
the type of property you want to buy
how much you want to borrow
some personal info like your address history for the last 3 years
your income and outgoings
any other borrowing like credit cards or loans.
Already started a decision in principle?
Just log on again using the application reference number we emailed to you to continue.
Continue your decision in principle
Don’t worry if something’s changed or it’s been more than 60 days since you started your application. You can easily get a new decision in principle.
Online mortgage application
Once you’ve got your online decision in principle, you can apply for your mortgage.
You can use the same application reference number to start your mortgage application.
Not quite ready for a decision in principle?
You don’t actually need a home in mind to get a decision in principle. It’s just a good way to find out if we’ll lend you what you need, and for you to consider the deposit you’ll need to put down.
There’s no obligation to get a mortgage with us afterwards either. So, there’s nothing to hold you back. It’s just a good thing to do before you find your home.
But if you’d rather not get a decision in principle today, try our mortgage calculators instead. They’ll quickly give you a rough idea of what you could borrow and how much your monthly payments will be.
Useful information
Here are some key need-to-knows about getting a decision in principle. You’ll find plenty of pointers whether you’re looking for your first home, remortgaging, or moving to a new home.
So, if you’re not sure what a decision in principle means for you, or you’re not sure what happens afterwards, simply check out the answers below.
A decision in principle with us lasts for 60 days. This should give you plenty of time to look for your new home while knowing what’s within your budget. Having one tucked away in your back pocket might even open up opportunities to view the most in-demand homes.
Don’t worry if you haven’t found your perfect pad after this time. You can always apply for a new one. You can even update your details if your circumstances change or you want to borrow more.
Usually, yes. And you can start by clicking the link below. It’s quick and you’ll get an instant decision. So, you could take a big step towards borrowing what you want today.
You’ll need to call us, though if your deposit is less than 10% of the value of the home you want to buy, you want to buy a new build, borrow more than £999,999, or buy with a Shared Equity or Shared Ownership scheme.
Ready to get your decision in principle now? All you need to do is enter a few details like how much you want to borrow, your income and outgoings, and whether you’ve already got a mortgage.
You can go hunting for homes knowing what you can afford. And if you see somewhere you love, you can make an offer that says, ‘serious buyer here’.
If your offer’s accepted, you’ll then make a full mortgage application. This is where we ask you to prove your personal details and finances. You can do this online or over the phone.
We’ll also value the home to check it’s worth what you’ve offered, although we won’t advise you on the condition of the property in any detail.
If all looks good, you’ll get a formal mortgage offer, which means your mortgage has now been approved. Then you can really get excited!
A decision in principle doesn’t mean your mortgage is finalised. When you make a full mortgage application, we’ll do more checks to see if we can approve it. This includes a full credit search, which will be registered on your credit file. You’ll need to prove your income too, so our offer could change.
However, a decision in principle does show we think you could afford the loan, based on what you’ve told us. So, as long as your info checks out, it’s a good guide that estate agents will take seriously. Just download a copy of it and give it to your estate agent.
And if you make an offer on a home, they’ll know you’re the real deal even if your mortgage isn’t quite a done deal.
No. Don’t worry. An online decision in principle is only a ‘soft’ search. So, it won’t impact your credit score or whether you can borrow money in the future. It’s just there to help us look at your finances and decide if we could lend you the amount you need. Other lenders won’t see it on your credit file either.
We only do a ‘hard’ credit search, which will leave a footprint on your credit file, when you make a full mortgage application later. This is when we dig deeper to check you can afford what you want to borrow. This records that you have applied to borrow money. Other lenders will be able to see this and this may affect your ability to borrow money.
You can. In fact, you could make an offer without a decision in principle too. Although it might not be taken seriously. After all, you won’t be able to show that you can go ahead if your offer’s accepted.
Having a decision in principle shows you’ve done your homework and should be able to borrow what you need. It’s valid for 60 days and makes your offer ‘proceedable’, especially if you’re a first time buyer without a home to sell.
We only take an overview of your finances when you apply for a decision in principle. So, it doesn’t guarantee a mortgage offer.
When you make a full mortgage application, we take a closer look. We do a hard credit check, which registers on your credit file, and ask you to prove your income and other details. If these checks show up something unexpected, we might change your mortgage offer.
Yes, of course. In fact, it’s a good idea to get a new decison in principle if your circumstances change or you want to borrow more. You’ll need to get a new one if yours is over 60 days old too.
You’re free to get a decision in principle from other lenders too. There’s no commitment. You could get a mortgage in principle from all the main banks if you want. Although you only need one mortgage in the end.
No. It’s completely free. We’ll email you an application reference number you can use to make a full mortgage application later, if that’s what you decide to do. But there’s no obligation.
All a decision in principle will cost you is the time it takes to fill it in. That’s a small price to pay to get ahead in your quest to remortgage, move home, or buy your very first home.
There’s no difference. They’re just different names for the same thing. We call it a ‘decision in principle’ but other banks might call it an ‘agreement in principle’, ‘mortgage in principle’, or even a ‘mortgage decision in principle’.
Most lenders ask for the same things. They check some of your personal and financial information to decide if they can lend you the amount you want. So, don’t be thrown by the different names.
It’s simply used to see if we could lend you the amount you’ve asked for. When you want a mortgage decision in principle, we look at information like your income and outgoings, address history, and whether you have any debts. We’ll also do a soft credit check, which won’t affect your credit score.
All data collection is done responsibly, legally, and purely to make our decision. We only save your information, and give you a reference number, to make it faster and easier for you to apply for a full mortgage application later.
Not everyone gets their full mortgage application accepted after a decision in principle. This is because the checks involved in a full application are more thorough. So, they might reveal something we didn’t expect, like extra debts or missed payments. It’s also possible that your credit score is low if you haven’t registered to vote at your current address.
But don’t panic. You can always apply for a mortgage again in the future if this happens to you. Perhaps when your income’s gone up, your debt’s gone down, or you’ve improved your credit score.