What Is a Decision in Principle (DIP) / Agreement in Principle (AIP) — and Why You Should Start With It

If you’re planning to buy a home in the UK, the smartest first step is getting a Decision in Principle (DIP) — also known as an Agreement in Principle (AIP).

Many buyers start house hunting first and think about the mortgage later. If the DIP or AIP then fails, the time spent viewing properties and making offers can be completely wasted. Starting with a DIP/AIP helps you avoid this and move forward with confidence.

What Is a Decision in Principle (DIP) / Agreement in Principle (AIP)?

A Decision in Principle (DIP), sometimes called an Agreement in Principle (AIP), is an initial statement from a mortgage lender confirming how much they may be willing to lend you.

It’s based on a high-level review of:

• your income and employment

• your credit history

• your regular outgoings

• your deposit

A DIP/AIP is not a mortgage offer, but it gives you a realistic borrowing figure and shows estate agents and sellers that you are a serious, proceedable buyer.

Why You Should Start With a DIP / AIP

1. Confirms Your True Buying Budget

Online mortgage calculators give estimates. A DIP/AIP uses real lender criteria, helping you focus only on homes you can afford.

2. Makes Your Offer Stronger

Most estate agents now require a DIP/AIP before presenting an offer to a seller. Having one ready shows you’re organised and ready to proceed.

3. Avoids Wasting Time

If a DIP/AIP fails after you’ve found a property, weeks of viewings and negotiations can be lost. Starting with it ensures your search is based on reality, not guesswork.

What If a DIP / AIP Fails?

A Decision in Principle (DIP) / Agreement in Principle (AIP) can be declined for a number of reasons, including credit history, self-employed or non-standard income, visa or residency status, or high monthly commitments such as loans or service charges.

In some cases, a failed DIP/AIP may mean that a mortgage is not currently possible, depending on the reason for the decline. This is why it’s best to start with a DIP/AIP before searching for a property, to avoid wasted time and disappointment.

However, a decline doesn’t always mean the end of the road. A mortgage broker has access to multiple lenders, each with different criteria, and may be able to obtain a DIP/AIP from a more suitable lender where a direct application has failed.

Why Arrange Your DIP / AIP Through a Broker?

Different lenders assess applications differently. Applying without advice can leave unnecessary credit checks and reduce your options later.

At Home Sorted, we:

• review your situation first

• select lenders suited to your circumstances

• arrange your DIP/AIP carefully

• protect your credit profile

This gives you a stronger start and a smoother path to a full mortgage offer.

Start With a DIP / AIP — Then Look for Your Home

A Decision in Principle / Agreement in Principle gives you clarity, confidence, and credibility when buying a home.

If you’re planning to buy, we can help you arrange your DIP/AIP and guide you through the process step by step.

Get in touch with Home Sorted and start your home-buying journey the right way and with confidence.

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