Getting a Decision in Principle
Before making an offer on a property we recommend you get a Decision in Principle. You'll need a Decision in Principle before applying for a mortgage with us.
What's a Decision in Principle?
A Decision in Principle is confirmation from your mortgage lender of how much they’re willing to lend you for your mortgage.
Sometimes a Decision in Principle is also called:
- an Agreement in Principle
- a Mortgage in Principle
- a Mortgage Promise
- a Lending Certificate
A Decision in Principle makes it easier when you start to look for properties and buy a home. You’ll have an idea of what your budget is, and you can show it to estate agents and new home builders to prove you’re a serious buyer.
When changing to a different lender or borrowing more, you’ll still need to get a Decision in Principle.
A Decision in Principle is not a mortgage offer, so you’ll still have to make a full application to see if you can get a mortgage.
What you’ll need to apply for a Decision in Principle
When applying for a Decision in Principle you’ll need details of your:
- address history in the UK going back three years
- income, such as salary, bonuses, benefits, pensions or investments
- credit cards, finance and loans
- outgoings, including travel costs, childcare and school fees.
Will a Decision in Principle affect your credit score?
We’ll do a soft credit check when you apply for a Decision in Principle. Soft credit checks do not affect your credit rating. They do not appear to lenders on your credit report and will not affect your ability to apply for borrowing in the future. If you go on to apply for a full mortgage application, we’ll run a formal credit check which will leave a foot print on your credit report.
How long does a Decision in Principle last?
A Nationwide Decision in Principle is valid for 90 days, and you can use it to apply for a mortgage straight away.
What happens after you get a Decision in Principle?
When you’ve found a property you like and had your offer accepted, or you’re ready to change mortgage provider, or borrow more, you’ll need to do a full mortgage application.
If your application is successful, we’ll make you an official mortgage offer. The official mortgage offer is based on the amount you’ve asked for in your mortgage application.