Quote, DIP and offer
- Indicative quote: a rate, fee and term based on your answers and the lender's published criteria. Instant Quotes shows these for lenders on our panel. No lender has reviewed your case
- Decision in principle: a lender has reviewed your case, may have run initial checks and sets out proposed terms and conditions. Lenders also call it agreement in principle, indicative terms, heads of terms or a term sheet
- Formal offer or facility letter: issued after valuation, underwriting and credit approval, and binding once accepted on its terms
What a lender checks for a DIP
For bridging, the lender looks at the property, the loan to value, the exit, your identity and a summary of your credit history and assets. For development, it reviews the appraisal, planning, your experience, the team and the build cost. Some lenders use a soft credit search at this stage and others run a full search, so ask which applies; see does a bridging loan affect your credit score.
What a DIP usually includes
- Loan amount, gross and net, and loan to value or LTGDV
- Rate, interest treatment and term
- Arrangement, exit and other fees
- Security required, including additional property and personal guarantees
- Conditions, such as satisfactory valuation, planning or the monitoring surveyor's report
- A validity period
What a DIP does not promise
A DIP is not a commitment to lend. Terms can change if the valuation comes in lower, the cost report raises concerns, title problems emerge or your circumstances change. Treat it as a strong signal of fit, not as certainty, and avoid exchanging contracts on a purchase until you are confident of the offer. See how lenders value property.
Fees and timing
A DIP is often issued within a day or two for bridging and within one to two weeks for development once a complete pack is supplied. Accepting it usually means paying for the valuation and, on development, the initial monitoring report. Some lenders charge a commitment fee. All fees should be set out before you proceed.
Getting to a DIP
Compare lenders whose criteria fit on Instant Quotes and apply online with the property details and documents. We present your case to the lenders you choose and return their decisions in principle for you to compare. For the full sequence, see how long a bridging loan takes and the development finance process.
Regulated bridging
If the property is, or will be, lived in by you or a close family member, the bridge is a regulated mortgage contract and the lender will also assess affordability before making a decision. We will tell you at the outset how your case will be handled.
Common questions
What is a decision in principle for a bridging loan?
A lender's initial written confirmation that it is willing to lend on stated terms, subject to valuation, underwriting and legal checks.
Is a DIP a firm offer?
No. Terms can change or be withdrawn after the valuation, underwriting or legal work.
Does a DIP involve a credit check?
Often. Some lenders use a soft search at this stage and others a full search. Ask the lender before you proceed.
How long is a DIP valid?
It varies by lender, commonly a few weeks to a few months. Check the validity period on the document.
Are Instant Quotes the same as a DIP?
No. Instant Quotes are indicative figures from lenders' published criteria. A DIP follows a lender's own review of your case.
This guide is for general information only and should not be treated as legal, tax or financial advice. Lender requirements depend on the property and your circumstances.
