How to get a mortgage in principle

Key takeaways

• A mortgage in principle estimates how much a lender could loan you.

• It can take as little as an hour if you have your details ready.

• It usually lasts 30 to 90 days, depending on the lender.

• It isn't a guaranteed offer. You'll still need a full mortgage application.

• Most lenders use a soft credit check, which doesn't affect your credit score. Always check first.
  

What is a mortgage in principle?

A mortgage in principle estimates how much you could borrow to buy or remortgage a property. It shows a lender is, in theory, willing to loan you that amount, based on a quick look at your income, spending and sometimes your credit file.

It's useful when you're house hunting, because some estate agents ask for one before they'll arrange viewings. But it isn't a formal mortgage offer. You'll still need to complete a full mortgage application to secure a loan.

How to get a mortgage in principle

You can get one online in a few steps:

• Choose where to apply. You can apply to a lender directly or use a broker. A broker can compare lenders for you, while applying direct means one lender's answer. Our broker partner Mojo offers a free online MIP.

• Check the type of credit check. Ask whether the lender or broker uses a soft or hard search. Mojo uses a soft search.

• Gather your details. Have your personal details, income and outgoings to hand. Proof of salary may not be needed yet, but it speeds things up if you have it.

• Complete the application. Enter your details online. You don't need full income and spending evidence until you make a full mortgage application.

• Save your certificate. Keep your MIP so you can show it to estate agents when you view or make an offer.
  

Do you need a mortgage in principle?

No, it isn't a legal requirement. But it helps in three ways:

• You'll know your budget, so you only view homes you can afford.

• You can show sellers and estate agents you're a serious buyer.

• You'll spot any credit or affordability problems early, before you fall in love with a home.

It's especially useful if you're a first-time buyer, or if you're buying in a busy market where other buyers already have one.

What do you need to get a mortgage in principle?

Lenders look at your income, spending and credit history to estimate how much you could borrow. Have these ready:

• Your name and date of birth

• Your address history for the last three years

• Your income. Employees usually need at least three months of payslips. Self-employed applicants usually need two to three years of accounts or tax calculations, though lenders vary

• Your monthly outgoings, including loans, credit cards and other commitments

• The size of your deposit

A MIP isn't a full application, so you won't usually need every document at this stage. But accurate, up-to-date details give you a more realistic figure and fewer surprises later.

How long does it take to get a mortgage in principle?

It can take as little as an hour if you have all your details ready. Gathering your income, outgoings and address history before you start makes it quicker.

Your lender or broker may also take a little longer if they spot anything that needs checking. Full application documents aren't usually needed at this stage, but you'll need them later.

How long is my mortgage in principle valid for?

Most last between 30 and 90 days, depending on the lender. That gives you time to find a property and have an offer accepted.

If your MIP runs out before you've found a home, you can usually get a new one. But interest rates, deals and lending criteria may have changed, so the amount you could borrow might be different.

Does a mortgage in principle affect your credit score?

Usually not. Most lenders use a soft credit check for a MIP, which doesn't leave a mark on your credit file or affect your score.

Some lenders use a hard check instead. A hard check shows on your credit file, and several in a short time can lower your score and affect your mortgage application. A lender will normally run a full hard check when you make your full application.

So ask before you apply, and choose a lender or broker that uses a soft search if you can. If you're worried about your history, see our guide on why your credit record matters and how to improve it.

Is a mortgage in principle a guarantee?

No. A MIP is an estimate based on limited information. It isn't legally binding and it doesn't guarantee you'll get a mortgage or the amount shown.

A mortgage offer is different. You only get one after you apply in full, the lender runs a hard credit check and checks your documents, and they value the property you want to buy. Your final offer can differ from your MIP if:

• The property is valued for less than you're paying

• Your income, spending or debts have changed

• Your full credit check shows something the first check didn't

• The lender's criteria or the market have changed

What happens after you get a mortgage in principle?

• Start house hunting. Use your MIP to set your budget and show estate agents you're ready.

• Make an offer. You can offer up to what you can afford, but remember the MIP isn't a promise.

• Find your mortgage. Compare deals, ideally with a broker, and choose one for your chosen home.

• Make a full application. The lender checks your documents and runs a hard credit check.

• Get a property valuation. The lender confirms the home is worth what you're paying.

• Receive your mortgage offer. You can only complete your purchase once you have this.

You don't have to use the same lender for your full application. If you find a better deal elsewhere, you can switch. You may also want to look at fixed rate mortgages or tracker mortgages to see how deal types differ.

Why might a mortgage in principle be lower than you expected, or declined?

Lenders look at your income, spending and credit history. These things can lower the amount, or lead to a no:

• Missed payments, arrears or other credit problems

• High existing debts or monthly commitments

• A short employment history or an irregular income

• Details that don't match across your application

If you're declined, ask why. A bad credit mortgage may still be possible, and a broker can point you to lenders that suit your situation. If you're applying with someone else, joint mortgages work differently, because lenders assess you both.

Can you get more than one mortgage in principle?

Yes. You can apply to several lenders and compare. But each application takes time, and if a lender uses a hard check, several in a row can hurt your credit score. A broker can compare lenders for you with a single application.

Mortgage in principle FAQs

Is a mortgage in principle the same as an agreement in principle?

Yes. A mortgage in principle, an agreement in principle and a decision in principle all mean the same thing: an estimate of how much a lender might loan you.

Can I make an offer on a home with a mortgage in principle?

Yes, you can make an offer. But you'll need a full mortgage offer before you can complete the purchase.

Does a mortgage in principle cost anything?

It's usually free, though some brokers charge, so check first. Mojo's online MIP is free.

How reliable is a mortgage in principle?

It's a good guide to your budget, but not a guarantee. The final amount depends on your full application, credit check and the property valuation.

Can I get a mortgage in principle if I'm self-employed?

Yes. You'll usually need accounts or tax calculations for the last two to three years. See our guide to self-employed mortgages.

Do I need a mortgage in principle when I remortgage?

Not always, but some lenders ask for one. It can also show you how much you could borrow before you commit. See our remortgages page for deals.