If you’re planning to buy a home, one of the first things a broker or estate agent will ask is whether you have a Mortgage in Principle. It’s a small piece of paperwork that makes a big difference to how smoothly your house-hunting goes. Here’s exactly what it is, how to get one, and why it matters.
What Is a Mortgage in Principle?
A Mortgage in Principle (MIP) — also called an Agreement in Principle (AIP) or Decision in Principle (DIP) — is a document from a lender stating how much they’d be willing to lend you, based on an initial assessment of your income, outgoings and credit history. It isn’t a full mortgage offer, and it isn’t guaranteed, but it gives you (and anyone selling a property to you) a realistic idea of your borrowing power before you commit to anything.
Think of it as a strong indication rather than a promise — a full mortgage application, done later, is the actual binding step.
How Does It Work?
When you apply for a Mortgage in Principle, the lender typically asks for:
- Your name, date of birth and address history
- Employment status and income
- Basic details of your outgoings and existing debts
- Consent to run a credit check (usually a “soft” check that doesn’t affect your credit score, though some lenders use a hard check — worth asking which type is being run)
Based on this, the lender calculates an estimated amount they’d lend you, and issues a document or certificate confirming it. Most Mortgage in Principle decisions are returned within minutes to a day, and are typically valid for 60-90 days, depending on the lender.
Why Do You Need One?
Estate agents often won’t take you seriously without one. Many agents ask for evidence of a Mortgage in Principle before booking viewings or accepting an offer, since it demonstrates you’re a credible, ready buyer rather than someone browsing without financing lined up.
It sets a realistic budget. Rather than falling in love with a property only to discover you can’t actually borrow enough, a MIP gives you a figure to search within from day one.
It speeds up the process later. Much of the information-gathering for a MIP feeds into your full mortgage application, so getting one early can shave time off the process once you’ve found a property.
It can strengthen your offer. In a competitive market, sellers are more likely to accept an offer from a buyer who can prove they’re mortgage-ready.
Mortgage in Principle vs Full Mortgage Application
| Mortgage in Principle | Full Mortgage Application | |
|---|---|---|
| When | Before house-hunting | After an offer is accepted |
| Based on | Basic details, self-declared | Verified documents (payslips, bank statements, ID) |
| Credit check | Usually soft | Usually hard |
| Binding? | No | Yes, once a formal offer is issued |
| Time to get | Minutes to a day | Several weeks |
Does Getting One Affect Your Credit Score?
It depends on the lender. Many use a soft credit check for a Mortgage in Principle, which is visible only to you and doesn’t affect your score. Some lenders, however, use a hard credit check, which does leave a mark visible to other lenders. If you’re planning to shop around, it’s worth asking upfront which type a lender uses — or going through a broker, who can usually tell you which lenders offer soft-search MIPs.
Can You Be Refused a Mortgage After Getting One?
Yes — this is an important point people often misunderstand. A Mortgage in Principle is based on limited, self-declared information. Your full application is checked far more thoroughly, and things can change the outcome, including:
- Documents not matching what was declared (e.g. income discrepancies)
- Issues found in a full credit check not visible at the MIP stage
- The specific property failing valuation or lending criteria (e.g. non-standard construction, short lease)
- A change in your circumstances between getting the MIP and completing the full application (new debt, job change, etc.)
This is why it’s called “in principle” rather than a guarantee.
How to Get a Mortgage in Principle
- Gather basic details — income, employment status, existing debts, rough idea of deposit
- Apply directly with a lender, or through a mortgage broker — a broker can often get you a MIP without it affecting your credit score, and can compare which lender is likely to offer the most favourable terms for your situation
- Receive your MIP certificate, usually within minutes to 24 hours
- Use it when viewing properties and making offers
- Move to a full application once your offer is accepted, providing full documentation
Frequently Asked Questions
How long does a Mortgage in Principle last?
Typically 60-90 days, though this varies by lender. If your house search takes longer, you may need to renew it.
Is a Mortgage in Principle a guarantee I’ll get a mortgage?
No. It’s an indication based on preliminary information. Your full mortgage application is assessed in much greater depth and can result in a different outcome.
Do I need a Mortgage in Principle before viewing houses?
It’s not legally required, but many estate agents ask for one before arranging viewings or accepting offers, so it’s strongly recommended.
Can I get a Mortgage in Principle with bad credit?
It’s possible, depending on the severity and lender, but options may be more limited. A broker can help identify lenders more likely to accept your circumstances.
Does applying for a Mortgage in Principle cost anything?
No, getting a Mortgage in Principle is typically free, whether through a lender directly or via a broker.
Want an accurate, no-obligation Mortgage in Principle without affecting your credit score? Get in touch with our team today.
