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The Mortgage Decision in Principle

Between January and September 2019, there were just under 570,000 mortgage sales in the UK, with those re-mortgaging accounting for the largest share of borrowers, followed by first time buyers.

What is a MDiP?

Securing a mortgage is, for many people, a critical part of the home buying process. The Mortgage Decision in Principle (MDiP) states, how much money a lender would be prepared to loan an individual. It can be provided in either certificate form or via a statement contained in an email.  An MDiP can last between 60 and 90 days, depending on the lender.

Why is a MDiP useful to Agents?

It is not a guarantee of a mortgage being available as availability can be impacted by factors such as interim changes in the borrower’s income, mortgage product availability and the property someone is looking to buy.  However, an MDiP is a useful way for an Estate Agent to confirm whether a potential purchaser can afford the Offer they have made on a property.  It is a very useful way to qualify a Buyer, particularly when you have several offers to consider on one property.  Buyers with an MDiP may also be able to secure a mortgage offer faster which can help to speed up a transaction.  Some Agents are refusing to show people around popular properties unless they can provide evidence of their MDiP prior to viewing.

How long does it take to get a MDiP?

Pre-Covid, it was possible to get a MDiP in under 24 hours but as we continue to contend with Covid, the process can take much longer although some Lenders, offer an instant online decision.  You should ask all Buyers registering with you to get a Mortgage Decision in Principal as soon as they are considering purchasing rather than waiting until they’re ready to make an offer. 

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