It's an exciting time when you're looking to buy a home, and getting a Decision in Principle (DIP), also known as an Agreement in Principle (AIP) or Mortgage in Principle (MIP), is a crucial first step. It gives you a clear idea of what you can realistically borrow, making your property search much more focused and showing estate agents you're a serious buyer. But how long does this important document from Nationwide truly remain valid? Let's dive deep into understanding the Nationwide Decision in Principle and what you need to know about its validity.
Understanding Your Nationwide Decision in Principle (DIP)
A Decision in Principle from Nationwide is essentially an indicative offer of how much they might be willing to lend you for a mortgage. It's based on a preliminary assessment of your financial situation, including your income, outgoings, and a soft credit check. This soft credit check is fantastic because it doesn't leave a visible mark on your credit file that other lenders can see, meaning it won't impact your credit score.
While incredibly helpful for getting your property search off the ground, remember that a DIP is not a binding mortgage offer. The full mortgage application process involves more in-depth checks, including a hard credit check (which does leave a footprint), a detailed review of your financial documents, and a valuation of the property you intend to buy.
Step 1: Discovering the Validity Period – Let's Get Started!
So, you've taken the plunge and secured a Nationwide Decision in Principle. Congratulations! Now, the burning question: how long is this golden ticket valid for?
Nationwide clearly states that a Decision in Principle is valid for 90 days.
Why 90 Days?
This 90-day period is a standard timeframe that allows you enough time to actively search for a property, have offers accepted, and then proceed with a full mortgage application. It's a balance between giving you flexibility and ensuring the information used for your DIP remains reasonably current.
What Does "Valid for 90 Days" Mean Practically?
It means that from the date your DIP is issued, you have approximately three months to:
- Actively view properties: Armed with your DIP, estate agents will see you as a credible buyer.
- Make an offer on a property: Your DIP supports your offer by demonstrating your borrowing capacity.
- Submit a full mortgage application: This is the critical next step after finding a property.
Step 2: What Happens as Your Nationwide DIP Approaches Expiry?
As the 90-day mark looms, you might find yourself in one of a few scenarios. It's crucial to understand what actions you should take depending on your progress.
Sub-heading 2.1: You've Found a Property and Are Ready to Apply for a Full Mortgage
If you've successfully found your dream home and are ready to proceed with a full mortgage application within the 90-day validity period, then fantastic! Your DIP has served its purpose. Simply move forward with your full application.
Sub-heading 2.2: You Haven't Found a Property Yet, or Your Search is Taking Longer
It's common for property searches to take longer than anticipated. If your Nationwide DIP is nearing its expiry and you haven't yet found a property or are still negotiating, don't panic.
The key is that if your circumstances (income, outgoings, credit history) haven't significantly changed, renewing your DIP is usually straightforward. Nationwide understands that the property market can be unpredictable.
Step 3: Renewing or Re-applying for a Nationwide Decision in Principle
If your 90-day DIP is expiring, or has already expired, and you still need one, here's what to expect and how to proceed.
Sub-heading 3.1: Renewing an Expiring DIP
Nationwide's system is designed to allow for renewal. If you've accessed your mortgage application hub via the confirmation email you received when you initially applied for the DIP, you might find an option to renew it there. The process is generally quick and involves confirming your details haven't changed.
Sub-heading 3.2: Re-applying for an Expired DIP
If your DIP has already expired, you will generally need to start again and submit a new DIP application. While this might sound tedious, it's typically a quick online process (around 20 minutes) and will again involve a soft credit check.
Important Note: Even if you re-apply, if your financial circumstances or credit history have significantly changed since your last DIP, the new borrowing amount could be different. For example, if you've taken on new debt, missed payments, or had a change in income, this could affect the outcome of your new DIP.
Step 4: Factors That Can Influence Your DIP or Full Mortgage Application
While your DIP provides an initial indication, certain factors can impact your eventual mortgage offer, even after a DIP has been issued.
Sub-heading 4.1: Changes in Your Financial Circumstances
- Income changes: A significant increase or decrease in salary, or a change in employment status (e.g., moving from employed to self-employed), can alter your affordability.
- New credit commitments: Taking out new loans, credit cards, or increasing existing credit limits can affect your debt-to-income ratio and thus your borrowing capacity.
- Missed payments: Any missed payments on existing credit commitments can negatively impact your credit score and the lender's confidence in your ability to repay.
Sub-heading 4.2: Changes in Nationwide's Lending Criteria
Mortgage lenders, including Nationwide, regularly review and update their lending criteria based on economic conditions and their risk appetite. While less common to impact an active DIP, it's possible that if a long period passes, or if there are significant market shifts, the amount you were initially offered might change when you go to full application.
Sub-heading 4.3: The Property Itself
Even with a valid DIP, the property you choose plays a crucial role. Nationwide will conduct a mortgage valuation to ensure the property is worth the price you're paying and that it meets their lending criteria. Issues identified during the valuation could lead to a lower loan offer or even a rejection of the mortgage on that specific property.
Step 5: The Journey from DIP to Mortgage Offer
Understanding the broader timeline can help you manage expectations and ensure you make the most of your DIP's validity.
Sub-heading 5.1: Initial DIP Application
- Timeframe: Often less than 24 hours, sometimes as quick as 20 minutes online.
- Outcome: A confirmation of how much Nationwide might lend you.
Sub-heading 5.2: Submitting a Full Mortgage Application (FMA)
- Timeframe: Can take 24-48 hours if all your documents are ready.
- What happens: Nationwide will request all necessary financial documents (payslips, bank statements, proof of deposit, etc.) and conduct a hard credit check.
Sub-heading 5.3: Mortgage Valuation and Underwriting
- Timeframe: Valuation booked and carried out within roughly 10 working days, with assessment taking another 2 days. The full underwriting process can take 2-4 weeks after the FMA is submitted.
- What happens: A surveyor assesses the property, and Nationwide's underwriters meticulously review your entire financial profile to make a definitive lending decision.
Sub-heading 5.4: Receiving Your Mortgage Offer
- Timeframe: Nationwide aims for an average of 9 working days from FMA to offer for standard cases (can be up to 13 for referred cases).
- What happens: If approved, you receive a formal, legally binding mortgage offer. This offer typically has its own validity period, often 180 days (6 months), which is separate from the DIP validity. For new build properties, Nationwide may consider extending the mortgage offer by 45 days, subject to eligibility, if requested within 30 days of expiry.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to Nationwide Decisions in Principle:
How to Check the Expiry Date of My Nationwide Decision in Principle?
You should have received a confirmation email from Nationwide when your DIP was issued. This email typically contains a link to your online mortgage application hub, where you can view your DIP details, including its expiry date.
How to Renew My Nationwide Decision in Principle Online?
If your DIP is nearing expiry, log in to your Nationwide mortgage application hub via the link in your original confirmation email. There should be an option to renew or re-apply for a new DIP, usually by confirming your details haven't changed.
How to Get a New Nationwide Decision in Principle if Mine Has Expired?
If your DIP has completely expired, you will generally need to go through the online application process again to get a new Decision in Principle. This will involve a new soft credit check.
How to Know if My Financial Circumstances Have Changed Enough to Warrant a New DIP?
Any significant changes to your income (e.g., new job, pay rise/cut), significant new debt (e.g., car loan, large credit card balance), or changes in your credit history (e.g., missed payments) would likely warrant a new DIP application to ensure accuracy.
How to Understand the Difference Between a DIP and a Mortgage Offer?
A DIP is a preliminary, non-binding indication of what you might borrow, based on a soft credit check. A Mortgage Offer is a formal, binding offer from Nationwide to lend you money, issued after a full financial assessment, hard credit check, and property valuation.
How to Speed Up the Nationwide Mortgage Application Process After Getting a DIP?
To speed things up, ensure all your financial documents (payslips, bank statements, proof of deposit, ID) are ready and easily accessible. Respond promptly to any requests for information from Nationwide or your mortgage advisor.
How to Apply for a Full Mortgage with Nationwide After Receiving a DIP?
Once you have found a property and had an offer accepted, you can proceed to submit a full mortgage application. This is typically done online through your Nationwide mortgage hub or with the assistance of a mortgage advisor.
How to Contact Nationwide for Support with My Decision in Principle?
You can contact Nationwide directly via their mortgage helplines, or if you're working with a mortgage broker, they can assist you with any queries regarding your DIP.
How to Appeal a Declined Nationwide Decision in Principle?
If your DIP is declined due to affordability or criteria, you can often appeal the decision. If you applied via an intermediary, contact your BDM (Business Development Manager). If you applied directly, you may need to call their mortgage new business team.
How to Ensure My Information is Accurate When Applying for a Nationwide DIP?
Always provide truthful and accurate information when applying for a DIP. Discrepancies between your DIP application and your full mortgage application can lead to delays or even a withdrawal of the mortgage offer. Double-check all figures, employment details, and address history before submitting.
