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Getting a Decision in Principle

Before applying for a mortgage you may need a Decision in Principle (DIP), sometimes referred to as an Agreement in Principle (AIP). A DIP gives an indication as to how much you could borrow from us and many sellers or estate agents ask to see your DIP as assurance that you can get a mortgage. It is for illustrative purposes only and doesn't provide all the information you need to choose a mortgage.

Please note:

A Decision in Principle (DIP) is not specifically related to a mortgage product within our range, and we reserve the right to withdraw our products at anytime without notice. Whilst you may be accepted by our Affordability Calculator and Decision in Principle, we may not have a product available to suit you.

Benefits of a Decision in Principle

  • Takes under 10 minutes

    Provide us with your details and we'll quickly let you know how much you could potentially borrow.

  • It lasts for 30 days

    You'll have 30 days to submit a full mortgage application without having to repeat the DIP.

  • It doesn't affect your credit rating

    We will carry out a 'soft' credit check which won't have any effect on your credit score.

What you'll need

Your income:

  • Salary
  • Bonuses
  • Overtime
  • Benefits
  • If you’re self-employed - last 2 years of accounts or Accountant's Certificate and net profit
  • For limited companies - amount of dividends and remuneration
  • If you’re a contractor please quote your annual salary as your daily rate x 5 x 48 weeks as employed income, rather than self-employed income.

Your outgoings:

  • Loans
  • Credit cards
  • Existing mortgage payments
  • Spending

To get started you'll need to check your affordability using our Affordability Calculator and then request a DIP. This is done in two easy stages.

The first steps

1

Check your affordability

The Affordability Calculator works out how much you might be able to afford to pay back on your mortgage based on your income and outgoings. You must complete this before you can get a DIP. If you've already got your affordability calculation, follow the instructions within your email. You can access it for 30 days before having to start again.

Launch Affordability Calculator

Need Help? Chat to us via web chat or call us on 0345 607 9825.

2

Request a Decision in Principle

We use the information you supplied for the Affordability Calculator and ask for some additional information to complete your DIP.

If you don’t complete both stages at the same time, at the end of your affordability calculation we’ll send you details via email to allow you to complete your DIP within 30 days. Make sure you provide your email address and mobile number to be able to start from where you left off.

Important Information

We will use the information provided by you to undertake an automated assessment of your ability to afford the mortgage using our Affordability Calculator. Where we assess it is not affordable, your application may be rejected without being manually assessed by the Society. If the information you provide in the Affordability Calculator indicates that we might be able to lend to you, we will then carry out a soft credit check, which means our check won't affect your credit score. You can find more information on our Credit Scoring Guide.

You could lose your home if you don’t keep up your mortgage repayments.

Frequently Asked Questions

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What is a Decision in Principle (DIP)?

Sometimes also known as an Agreement in Principle or Mortgage in Principle, it gives an indication as to how much you could borrow. Many estate agents will insist on seeing a DIP as assurance before they'll put your offer to the seller. A DIP is for illustrative purposes only and doesn't provide all the information you need to choose a mortgage.

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Why do I need a Decision in Principle (DIP)?

Before applying for a mortgage you may need a Decision in Principle (DIP), sometimes referred to as an Agreement in Principle (AIP). A DIP gives an idea of how much you could borrow from us and many sellers or estate agents ask to see a DIP. A DIP means that Skipton Building Society is, in principle, prepared to make a loan up to the amount shown. It is not a mortgage offer and does not mean that Skipton will make one. A mortgage offer is subject to full application, valuation and meeting the Skipton's lending criteria.

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How long is a Decision in Principle (DIP) valid for?

You will have 30 days to have an offer accepted on the property you are buying and to book a mortgage appointment with one of our mortgage advisers, who will complete a full mortgage application over the phone or via video appointment with you.

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Does a Decision in Principle (DIP) involve a hard or soft credit search?

Carrying out a DIP at Skipton will involve a soft credit search which won’t leave a footprint on your record. If you do choose to progress with a full mortgage application, a hard credit search and credit scoring will be carried out, which will leave a footprint on your credit record.

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What happens once my online Decision in Principle (DIP) has been accepted?

  1. We will send you an email to confirm your Decision in Principle has been accepted.
  2. You will have 30 days to have an offer accepted on the property you are buying to submit your full mortgage application. Our mortgage advisers can complete a full mortgage application with you over the phone or via video appointment. You'll find details of how to book a mortgage appointment in your email from us.

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Site intended for UK residents only. Skipton Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice.
Principal Office, The Bailey, Skipton, North Yorkshire, BD23 1DN.

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