Once you’ve spoken to your mortgage adviser and agreed to proceed they will submit your details to obtain a Decision in Principle which will show you how much you could borrow. We calculate this using the following information:
The amount shown in the DIP is an initial advisory figure based on the information you have provided and at this stage it’s not yet a commitment from Kensington to lend to you. However, if you decide to proceed with us we’ll use the information you’ve already provided for your formal mortgage application.
If you’re looking to buy a new home, once you have your DIP you’re free to start booking appointments and viewing properties!
As soon as we’ve received your full application, we’ll swing into action.
We'll start by instructing our Surveyors to book an appointment to value the property you want to buy or remortgage.
Then, we will review your application and supporting documentation. If we need any further information to support your application or we need to clarify any points, we’ll let your mortgage adviser know so they can work with you to supply the required information.
After this, we’ll keep updating your mortgage adviser on the progress of your case. We’ll confirm when the valuation is booked for and then advise what the property has been valued at. We’ll also confirm if the supporting documentation you’ve been asked to supply is sufficient or we need to see anything else. Finally, if we have everything we need to approve your application, we’ll send your mortgage adviser a formal mortgage offer.
Once you’ve received your mortgage offer we’ll work with your solicitor who will let us know your moving date… and we’ll transfer the cash on your chosen completion date.
If we can’t say yes... sometimes we may have to decline a mortgage application. If that happens we’ll always talk to your mortgage adviser and where we can, give a full explanation as to the reasons why. And if you could apply again at a later date, we’ll let them know that too.
A decision in principle is an indication of how much we may be willing to lend, based on the information your mortgage adviser has provided. It is also known as an agreement in principle or mortgage in principle.
A decision in principle is usually valid for 40 days.
Several factors can affect how long your mortgage application may take to be approved, including:
Generally, we aim to process applications and issue you with a formal offer within 25 working days. But, if your application is complex, it may take longer.
Sometimes we may have to decline a mortgage application if we're unable to lend to you. If that happens, we’ll always talk to your mortgage adviser and where we can, give a full explanation about the reasons why. And if you could apply again at a later date, we’ll let them know that too.
Your formal mortgage offer is usually valid for 120 days. For new build properties, a formal mortgage offer can be valid for up to 180 days.
When your mortgage adviser applies for a Decision in Principle (DIP), we’ll do a soft credit check. This soft credit check is to take an initial look at certain information on your credit report. Soft credit checks do not impact your credit score and cannot be seen by other companies or lenders.
When your mortgage adviser goes on to submit a full mortgage application, we’ll do a hard credit check on your credit file. This is where we’ll do a complete search of your credit report and will leave a hard footprint on your credit file. This can be seen by other companies and lenders.
Please be aware mortgages are secured against your home and your home may be repossessed if you do not keep up repayments on your mortgage.