If you’re buying a home in Newcastle, Northumberland or the surrounding areas, you’ve probably heard the terms Decision in Principle and Mortgage Offer. They sound similar — but they mean very different things.
As a local mortgage advisor in Cramlington, I often speak to homebuyers who aren’t quite sure what each one actually does. Here’s a clear breakdown to help you understand the difference and what each stage means for your home-buying journey.
đź’ˇ What is a Decision in Principle (DIP)?
A Decision in Principle, sometimes called an Agreement in Principle, is an initial indication of how much a lender might be willing to lend you based on your income, credit history, and outgoings.
It’s a quick check that helps you understand your potential budget before you start house-hunting. Having a DIP can also make you more attractive to sellers and estate agents, as it shows you’re mortgage-ready and serious about buying.
You’ll usually receive your Decision in Principle within minutes of applying, and it typically lasts between 30 and 90 days.
đź“„ What is a Mortgage Offer?
A Mortgage Offer comes later in the process — after you’ve submitted a full mortgage application, provided all supporting documents, and the lender has carried out a valuation on the property.
Once the lender is happy with everything, they’ll issue your formal Mortgage Offer, confirming that your mortgage is fully approved and ready to proceed to completion.
This is the document your solicitor will need to move forward with your purchase — it’s the green light to buy your new home.
🧠Which One Do You Need First?
You’ll always need a Decision in Principle before a full application. Think of it as your first checkpoint — it helps you understand your budget and gives you confidence when making an offer on a property.
Once your offer is accepted, that’s when your mortgage broker will guide you through the full application to secure your Mortgage Offer.
🤝 Local Mortgage Advice in Newcastle & Northumberland
Whether you’re buying your first home, moving house, or remortgaging, getting the right guidance makes the process far smoother.
At MortgagePal, I work with homebuyers across Newcastle, Cramlington, North Tyneside, and Northumberland, helping them understand every stage — from getting a Decision in Principle to receiving their full Mortgage Offer.
If you’re planning to buy soon and want to know where to start, get in touch for free advice and a clear plan that fits your situation.
Anthony Vickers
Mortgage Advisor – MortgagePal
đź“Ť Based in Cramlington, serving Newcastle & Northumberland
🔑 Your mortgage made simple
