At Oakstead Finance, we work with Nationwide regularly and have a practical understanding of how the lender approaches applications. Nationwide normally credit-scores applicants at Decision in Principle stage using a soft search, before completing a hard credit search when the full mortgage application is submitted.
How Do Nationwide Mortgage in Principle Mortgages Work?
Nationwide mortgage in principle mortgages provide an initial indication of whether Nationwide may lend and how much could be available, based on the information entered and a soft credit search.
- ✪ Nationwide calls its result a Decision in Principle, commonly shortened to DIP.
- ✪ A broker submits the DIP through Nationwide for Intermediaries Online, known as NFI Online.
- ✪ The result may be accept, decline or refer for further review.
- ✪ An accepted DIP is not a mortgage offer and remains subject to the full application, evidence, valuation and underwriting.
What Information Does Nationwide Check?
A Nationwide DIP examines the applicants, requested borrowing, income, expenditure and credit profile before returning an affordability result.
- ✪ Personal details and three years of UK address history.
- ✪ Basic salary, variable earnings, benefits, pensions or investment income where relevant.
- ✪ Loans, credit cards, childcare, school fees, travel costs and other continuing commitments.
- ✪ The proposed purchase price, deposit, mortgage amount and term.
The outcome therefore carries more weight than a basic calculator result, but it still cannot settle every underwriting question. Oakstead Finance explains what an online mortgage calculator cannot confirm.
How Much Can Nationwide Mortgage in Principle Mortgages Show?
Nationwide mortgage in principle mortgages can return different borrowing limits because Nationwide publishes several maximum loan-to-income bands for different application types.
- ✪ Standard applications have a published maximum of 4.49 times income.
- ✪ Eligible first-time buyers using Helping Hand may reach six times income.
- ✪ New home movers or remortgage applicants borrowing more may reach six times income where eligible income is at least £75,000 for either a sole or joint application.
- ✪ Existing Nationwide borrowers moving home or borrowing more may reach six times income without a published minimum-income threshold.
These figures are maximum boundaries, not promised results. Nationwide applies affordability and stress testing during the DIP, as explained more broadly in Oakstead Finance’s guide to how lenders assess income multiples.
How Does Nationwide Treat Bonus, Commission and Dividend Income?
Nationwide can use bonus, overtime and commission income, but it averages the payments using a defined number of consecutive payslips.
- ✪ Monthly variable income normally requires three consecutive payslips.
- ✪ Quarterly payments require three relevant payslips, with the oldest dated no more than 12 months before the DIP.
- ✪ Annual bonus or commission requires two payslips showing the payment, with the oldest no more than 25 months before the DIP.
- ✪ For limited-company directors, Nationwide generally uses the lower of the latest salary and dividends or the two-year average.
Self-employed applicants commonly need two years of tax calculations and corresponding tax-year overviews or acceptable accounts evidence. Oakstead Finance sets out how to access SA302s and tax-year overviews.
Nationwide at a Glance
| DIP feature | Nationwide position |
|---|---|
| Credit search at DIP | Soft footprint |
| Credit search at full application | Hard footprint |
| DIP validity | 90 days |
| Standard maximum LTI | 4.49 times income |
| Selected maximum LTI | Up to six times income |
| Current referred-DIP review | Within one working day |
What Could a Nationwide DIP Show in Practice?
Consider a hypothetical first-time-buyer couple with eligible joint income of £60,000 and a £25,000 deposit who are considering a £325,000 property.
A £300,000 mortgage would equal five times their joint income and produce a loan-to-value of approximately 92.3%. This exceeds Nationwide’s standard 4.49-times maximum, which would place the headline standard ceiling at £269,400 before affordability testing.
Helping Hand can permit eligible first-time buyers to borrow up to six times income on qualifying five-year or ten-year fixed products. The requested £300,000 falls below the theoretical £360,000 Helping Hand ceiling, but the DIP could still return less after debts, regular expenditure, credit scoring and stress testing are considered.
What Happens When a Nationwide DIP Is Referred?
A referred DIP has not yet been underwritten or accepted, so the broker should stop and wait for Nationwide’s review before progressing.
- ✪ Nationwide’s current service level states that referred DIPs are reviewed within one working day.
- ✪ A subjective accept is needed before the broker moves to the full application.
- ✪ Current full-application service levels are separate from the DIP review and can change with workload.
How Do Nationwide Mortgage in Principle Mortgages Compare With Alternatives?
Nationwide mortgage in principle mortgages can be compared with Accord Mortgages and NatWest by looking at credit-search treatment and how long the initial decision remains usable.
- ✪ Accord is an intermediary-focused lender whose lending decision uses a soft credit check and normally lasts for 90 days.
- ✪ NatWest also uses a soft-footprint Agreement in Principle, but its residential AIP is guaranteed for 30 days where the information remains unchanged.
The validity period is only one comparison point. The affordable amount, applicable product, income treatment and likelihood of referral may matter more to a particular applicant.
What You Need to Know
In practical terms, Nationwide mortgage in principle mortgages provide a useful initial lending indication without placing a hard search on the applicant’s credit file.
- ✪ A Nationwide DIP normally remains valid for 90 days.
- ✪ It is an indication, not a mortgage offer.
- ✪ The full application triggers a hard credit search.
- ✪ Criteria, products and service levels can change and need confirming before submission.
Frequently Asked Questions
It is Nationwide’s initial indication of how much it may be prepared to lend based on the information entered and its credit and affordability checks. Nationwide usually calls it a Decision in Principle.
Do Nationwide mortgage in principle mortgages affect a credit score?
Nationwide mortgage in principle mortgages normally use a soft credit search, which does not affect the applicant’s credit rating. A hard search is completed when the full mortgage application is submitted.
How long does a Nationwide DIP last?
A Nationwide Decision in Principle normally remains valid for 90 days. A new or renewed DIP may be required if it expires before the full application is made.
Does a Nationwide DIP guarantee a mortgage?
No. The result remains subject to the full application, supporting evidence, a property valuation, affordability checks and Nationwide’s underwriting decision.
How long does a Nationwide DIP take?
A straightforward online DIP can return a result promptly once the required information has been entered. Nationwide currently states that referred DIPs are reviewed within one working day, although service levels can change.
Can Nationwide lend six times income?
Nationwide publishes maximum borrowing of up to six times income for certain eligible applicants, including qualifying Helping Hand cases and some higher-income applications. The actual DIP result can be lower.
What happens if the Nationwide DIP is referred?
A broker should stop and wait for Nationwide to review the case. A referred result is not an acceptance and has not yet received a full underwriting assessment.
Can variable income be included in a Nationwide DIP?
Bonus, overtime and commission can be included where they meet Nationwide’s criteria and the required average is supported by consecutive payslips. The number of payslips depends on how frequently the income is paid.
