A DIP gives an indication of how much you may be able to borrow from us. Many sellers or estate agents ask to see your DIP to show you could get a mortgage. It is for illustrative purposes only and doesn't provide all the information you need to choose a mortgage.
A Decision in Principle (DIP) is not specifically related to a mortgage product within our range. We reserve the right to withdraw our products at any time without notice. Although you may be accepted by our Affordability Calculator and Decision in Principle, we might not have a product available to suit you.
Step one: Mortgage affordability calculator
What you'll need to provide
Your income:
- Salary
- Bonuses
- Overtime
- Benefits
- If you’re self-employed - last two 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
You could lose your home if you don’t keep up your mortgage repayments.
Step two: Request your Decision in Principle (DIP)
After you get your affordability calculator results, you can request a DIP. You can do this within 30 days of completing your calculation.
If you don’t complete steps one and two at the same time, at the end of your affordability calculation we’ll email you details to allow you to complete your DIP within 30 days. Please make sure you provide your email address and mobile number so you can start where you left off.
Step three: Apply for a mortgage
If your DIP is accepted, you’ll have 30 days to submit a full mortgage application, without having to repeat the DIP.
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 you would like to challenge the automated decision, you can ask to have your application reviewed by an underwriter.
If the information you provide in the Affordability Calculator indicates we might be able to lend to you, we will carry out a soft credit check. This means our check won't affect your credit score. You can find more information on our Credit Scoring Guide [PDF].
Affordability FAQs
An affordability calculation works out how much you might be able to afford to pay back on your mortgage based on your income and outgoings. It is for illustrative purposes only and doesn't provide all the information you need to choose a mortgage. You can carry it out using an online tool like our affordability calculator.
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. The information you provide will be used to complete your DIP.
If you’re not quite ready for a DIP, we'll email you a link once you've completed the online affordability calculator, so you can do it later. This link is available for 30 days. At the end of the 30-day period you will have to restart this process.
Buying a home is a complicated process with all sorts of different elements involved. You need have an offer accepted on a property before you can arrange a mortgage. But estate agent often won’t put an offer on a home to the seller unless they can be confident the would-be buyer could afford to buy it.
That’s where a mortgage in principle, or Decision in Principle (DIP), comes in. A DIP is a way of showing your financial circumstances mean a mortgage lender is likely to approve your mortgage application. It gives the seller greater confidence to say yes to an offer. It also gives you more confidence of what home you could afford to make an offer on.
You should know, there are no guarantees that having a DIP means your mortgage application will be approved. A DIP is for illustrative purposes only. It doesn't provide all the information you need to choose a mortgage.
You will have 30 days to complete a full mortgage application, if you have an offer accepted on the property you are buying. To do this, book a mortgage appointment with one of our mortgage advisers, over the phone or via video appointment.
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. This will leave a footprint on your credit record.
