Decision in Principle

NI_Sense

Hi.
I am about to sell my house and hopefully buy another at the same time. I am organising a Decision in Principle for a new home. Until I find a new home, can I get a broad based decision in Principle to cover a range of house values? For example, my new house price bracket is in the range of 100 to 130k. Can a DIP reflect this or does it have to be exact? In other words, based on the new houses asking price only?

Mrsemmawright2010

Our DIP covered a range.  I think they are useful at looking at how much ypu can borrow.

greatcrested

The DIP will indicate how much you can borrow. That does no mean you must borrow that amount - you can of course choose to borrow less.

AdrianC

DiP has nothing to do with the property.
It's purely the lender looking at YOU, and seeing how much they think you are safe to borrow.

Hebblethwaite

I requested a DIP for £185k but the broker (L&C) has included a comment on the certificate saying that I might be able to get up to £315,150. I don't want to go anywhere near that maximum, but it should be helpful when proving to EAs that I can afford to look at houses slightly above my ideal range. I would ask for a DIP for the maximum amount that you might realistically be borrowing (and within the range that banks are likely to let you borrow, as you don't want the extra search on your credit file). I didn't do this and requested a DIP that is slightly below the maximum spend I would be comfortable with, so I am glad that L&C included the higher figure too.

ic

I've never understood the fuss about getting a decision in principle.  Doing it online with any high street bank is straight forward, and only a few questions.  There's no credit check, so there's nothing stopping you running up DIPs with a few lenders.  There's no commitment to that lender by getting one either.   I had a few in my pocket when I was viewing houses.

Only complication might be if you have certain/difficult circumstances - but for most a DIP can be achieved in five minutes.

lookstraightahead

ic said:

I've never understood the fuss about getting a decision in principle.  Doing it online with any high street bank is straight forward, and only a few questions.  There's no credit check, so there's nothing stopping you running up DIPs with a few lenders.  There's no commitment to that lender by getting one either.   I had a few in my pocket when I was viewing houses.

Only complication might be if you have certain/difficult circumstances - but for most a DIP can be achieved in five minutes.

Because it's best to get your ducks in a row prior to offering, for your own sake. I've lost out on properties because of other people's quick DIP which have them come back on the market because people exaggerate or don't know what they're asking for. Wasters