The Question
I recently started looking for properties as I am planning to buy my first home. I viewed some homes and tried to put in an offer for one but the estate agent said my offer had been turned down because I didn’t have a mortgage in place. He said I need a Decision in Principle.
What is this and how do I obtain one? I have saved up a really good deposit – £59,000 so far – and I said I could show him statements to prove this, but he said I needed the relevant decision. Please help!
Ranald’s Answer
Having a Decision in Principle (DIP) demonstrates to everyone involved that you’re a serious buyer.
It’s essentially the initial stage of the mortgage application process. During this step, you provide some basic details to a lender, who then gives a preliminary yes or no regarding your mortgage application, typically after conducting a 
credit check.
Getting a DIP is usually straightforward; you just need to connect with a reliable broker who can assist you.
Once the DIP is done, the broker can furnish you with a certificate from the lender indicating their readiness to proceed with a full application from you.
Ranald Mitchell is director of Charwin Private Clients
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