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If you’re starting your property search, one of the first things you’ll hear about is a Mortgage in Principle. Also known as an Agreement in Principle or Decision in Principle, it’s an indication from a lender of how much they may be willing to lend based on some initial information about your finances. Although it isn’t a formal mortgage offer, having a Mortgage in Principle can give you greater confidence when house hunting and show estate agents and sellers that you’re a serious buyer. In this guide, we’ll explain what a Mortgage in Principle is, how to get one and what happens next.
A Mortgage in Principle shows how much a lender may be willing to lend before you find a property.
Most Mortgage in Principles can be arranged quickly, often within a day.
It isn't a guarantee that your mortgage will be approved.
Many estate agents and sellers prefer buyers who already have a Mortgage in Principle.
A whole-of-market mortgage broker can compare lenders and arrange the most suitable Mortgage in Principle for your circumstances.
How HTG Mortgages Can Help
At HTG Mortgages, I work with over 120 lenders across the UK, meaning we have access to a wide range of mortgage products to suit all types of borrowers. Whether you’re a first-time buyer or looking to remortgage, we can help you determine how much you can borrow and find the right mortgage for your circumstances.
We also provide ongoing support, regularly checking your options after your mortgage is secured, ensuring that you never miss out on a lower rate.
What Is a Mortgage in Principle?
A Mortgage in Principle (MIP) is an indication from a lender of how much they may be prepared to lend you, based on the financial information you provide. It’s sometimes called an Agreement in Principle (AIP) or Decision in Principle (DIP). While it’s not a binding mortgage offer, it gives you a realistic budget before you begin viewing properties.
Do I Need a Mortgage in Principle Before Viewing Houses?
Not always, but having one can make your property search much easier. Many estate agents will ask whether you already have a Mortgage in Principle before arranging viewings or accepting an offer. It demonstrates that you’ve already taken the first steps towards securing a mortgage.
How Do I Get a Mortgage in Principle?
You’ll usually need to provide details about your income, employment, regular outgoings and any existing debts. Some lenders carry out a soft credit check, while others may perform a full credit search. A mortgage broker can compare multiple lenders and arrange a Mortgage in Principle that’s suitable for your circumstances.
Speak to an expert
Whether you’re buying your first home, moving house or remortgaging, HTG Mortgages is here to make the process as simple and stress-free as possible. I’ll compare mortgages from over 120 lenders, guide you every step of the way and help you find the right mortgage for your circumstances.
How Long Does a Mortgage in Principle Last?
Most Mortgage in Principles remain valid for between 30 and 90 days, although this varies by lender. If it expires before you’ve found a property, it can usually be renewed or updated with your latest financial information.
Does a Mortgage in Principle Guarantee I’ll Get a Mortgage?
No. A Mortgage in Principle is only an initial indication based on the information available at the time. Your full mortgage application will still be subject to affordability checks, document verification, a property valuation and the lender’s underwriting process.
Does a Mortgage in Principle Affect My Credit Score?
It depends on the lender. Many lenders now use a soft credit search, which doesn’t affect your credit score. Others may carry out a hard credit search, which will appear on your credit file. A mortgage broker can help you choose a lender that suits your circumstances.
Can I Get More Than One Mortgage in Principle?
Yes. If you’re comparing lenders or your circumstances change, you may choose to obtain more than one Mortgage in Principle. However, it’s sensible to avoid multiple hard credit searches within a short period where possible.
Should I Get a Mortgage in Principle Through a Mortgage Broker?
Many buyers choose to do so because a broker can compare lenders across the market rather than relying on a single bank. They can also identify which lenders are most likely to accept your application based on your individual circumstances.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
