27/10/2026
A Decision in Principle (DIP) also called an Agreement in Principle (AIP) or Mortgage in Principle (MIP) is an early, provisional statement from a mortgage lender confirming how much they might be willing to lend you based on a quick check of your finances and credit profile. It is not a formal mortgage offer, but it is one of the most important early steps in the UK home buying process. A DIP is simply an indication, not a guarantee. The lender can still change their decision once you submit a full mortgage application.
Most DIPs are valid for 30–90 days, after which you may need to renew them. Renewing can involve another credit check.
A DIP matters for three major reasons:
👌 It shows estate agents you’re a serious buyer
In competitive markets, agents often won’t accept an offer without seeing your DIP. It proves you can realistically proceed with a purchase.
💷 It gives you a realistic budget
A DIP prevents you from wasting time viewing homes outside your affordability. It anchors your search to what lenders are likely to approve.
🏃♀️➡️ It speeds up the buying process
Having a DIP ready means, you can make an offer immediately when you find the right property — crucial in fast moving markets.
Alegra Mortgage and Protection is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Approved By The Openwork Partnership on 26/10/2026
