A Mortgage in Principle is an early indication of how much a lender may be willing to lend before you make a full mortgage application. It is also known as an Agreement in Principle, Decision in Principle, AIP, DIP or MIP.
It can help you understand your likely borrowing range, search for homes with more confidence and show estate agents or sellers that you have taken an important first step.
A Mortgage in Principle is not a guaranteed mortgage offer. The lender still needs to complete full affordability checks, review your documents and assess the property before making a final lending decision.
Find a mortgage adviser through Connect Experts if you want help understanding your borrowing position before you start viewing properties.
What is a Mortgage in Principle?
A Mortgage in Principle is a written estimate from a lender showing how much you may be able to borrow, based on an initial review of your income, outgoings and credit profile.
It helps answer three important questions:
- How much could I potentially borrow?
- Am I looking at properties in the right price range?
- Could I show an estate agent that I am a serious buyer?
It is useful, but it is not final approval. A full mortgage offer only comes after a complete application, underwriting checks and a valuation of the property.
Why a Mortgage in Principle matters
Many buyers begin their search by looking at properties online. The problem is that the property price alone does not tell you whether a lender will agree to the mortgage.
A Mortgage in Principle gives you a clearer starting point. It can help you avoid viewing homes outside your likely budget and may make your offer look stronger when compared with a buyer who has not checked their borrowing position.
It can be especially helpful if you are:
- Buying your first home
- Moving home
- Unsure how much you can borrow
- Self-employed or have variable income
- Worried about your credit history
- Buying with another person
- Returning to the property market after a break
- Trying to move quickly in a competitive area
If you are still working out your budget, read our mortgage affordability guide before applying.
Mortgage in Principle, Agreement in Principle and Decision in Principle
These terms are often used in the same way:
- Mortgage in Principle
- Agreement in Principle
- Decision in Principle
- AIP
- DIP
- MIP
They all usually refer to an initial lender assessment before a full mortgage application.
Different lenders and brokers may use different wording, but the purpose is broadly the same. It gives an early indication of possible borrowing based on the information available at that stage.
Is a Mortgage in Principle a mortgage offer?
No. A Mortgage in Principle is not a formal mortgage offer.
A full mortgage offer is only issued after the lender has reviewed your complete application. This normally includes detailed checks on your income, bank statements, commitments, credit history and the property you want to buy.
Mortgage in Principle vs full mortgage offer
| Mortgage in Principle | Full mortgage offer |
|---|---|
| Early indication of borrowing | Formal lender offer |
| Based on initial information | Based on full underwriting |
| May involve a soft or hard credit check | Usually involves full credit and affordability checks |
| Does not secure funds | Confirms the lender is prepared to lend, subject to conditions |
| Often used before house hunting or making an offer | Used after an accepted offer on a property |
| Can change if your circumstances change | Usually valid for a set period once issued |
A Mortgage in Principle helps you prepare. A mortgage offer helps you move towards completion.
How long does a Mortgage in Principle last?
A Mortgage in Principle often lasts between 60 and 90 days, although this depends on the lender.
If it expires before you find a property, you may need to request a new one. The result could change if:
- Your income has changed
- Your spending has increased
- You have taken out new credit
- Your credit score has changed
- Interest rates have changed
- Lender criteria have changed
- Your deposit has changed
- You are applying for a different type of mortgage
Do not assume an expired Mortgage in Principle will be renewed on the same terms.
Does a Mortgage in Principle affect your credit score?
It depends on the lender and the type of credit check used.
Some lenders use a soft credit check at Mortgage in Principle stage. A soft check does not usually affect your credit score and is not normally visible to other lenders.
Some lenders may use a hard credit check. A hard check can appear on your credit report and may temporarily affect your score.
Before applying, ask whether the lender or adviser will use a soft or hard search. This is especially important if you have recently applied for credit, missed payments or have a limited credit history.
If you are worried about your credit profile, speak with an adviser before submitting multiple applications.
What information do you need for a Mortgage in Principle?
You may need to provide details about:
- Your income
- Your employment status
- Your deposit
- Your monthly commitments
- Credit cards, loans or car finance
- Childcare or maintenance payments
- Your address history
- Your planned property price range
- Whether you are applying alone or jointly
- Any known credit issues
You may not need to upload every document at this stage, but the information must be accurate. Incorrect details can cause problems later when the lender reviews your documents in full.
What documents should you prepare?
Having documents ready can make the mortgage journey smoother.
Common documents include:
- Photo ID, such as a passport or driving licence
- Proof of address
- Recent payslips if employed
- Latest P60, if available
- Bank statements
- Proof of deposit
- Tax calculations and tax year overviews if self-employed
- Company accounts, where relevant
- Details of credit commitments
- Evidence of bonus, overtime or commission, where used
The exact documents depend on your circumstances and the lender’s requirements.
For broader guidance on the home-buying process, see our first-time buyer guide.
When should you get a Mortgage in Principle?
You should usually consider getting a Mortgage in Principle before making an offer on a property.
Many buyers get one before serious viewings begin. This helps them understand their budget and avoid delays if they find a suitable home.
A Mortgage in Principle may be useful when:
- You want to know your likely borrowing range
- You are preparing to view properties
- An estate agent asks for proof of affordability
- You want to make an offer
- You are comparing whether to buy now or wait
- You want to check whether your income is likely to fit lender criteria
If you are buying a home to live in, our residential mortgage guide explains how residential mortgages work.
Can you make an offer without a Mortgage in Principle?
Yes, but it may make the process harder.
Some estate agents may ask whether you have a Mortgage in Principle before accepting an offer or making a serious offer. Sellers may also prefer buyers who have already checked their borrowing position.
A Mortgage in Principle does not guarantee completion, but it can show that you have taken a sensible step before making an offer.
What can change after a Mortgage in Principle?
Your final mortgage application can still be declined or changed after a Mortgage in Principle.
This may happen if:
- Your income cannot be verified
- Your spending is higher than expected
- Your credit file shows new or undisclosed information
- The property valuation is lower than expected
- The property does not meet lender criteria
- Your deposit source is not acceptable to the lender
- You change job or employment status
- You take out new borrowing before completion
- Interest rates or lender rules change
For this reason, avoid major financial changes between getting a Mortgage in Principle and completing your mortgage application.
How Connect Experts can help
Connect Experts helps you find mortgage advisers across the UK. You can search by location, language, gender and mortgage expertise, helping you choose an adviser who fits your needs.
Connect Experts is a mortgage adviser directory and matching platform. We do not provide mortgage advice directly. Advice is provided by the adviser or firm you choose.
You can use Connect Experts to:
- Find a mortgage adviser near you
- Search by mortgage type
- Choose an adviser who understands your circumstances
- Compare adviser profiles
- Speak with someone before applying
- Get support with documents and lender criteria
Start with the Connect Experts homepage or use our ” Find a Mortgage Adviser Near You page.
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FAQ: Mortgage in Principle
| Question | Answer |
|---|---|
| What is a Mortgage in Principle? | A Mortgage in Principle is an early indication from a lender of how much you may be able to borrow. It is based on initial information about your income, spending and credit profile. It is not a formal mortgage offer. |
| Is a Mortgage in Principle the same as an Agreement in Principle? | Yes, the terms are often used in the same way. Mortgage in Principle, Agreement in Principle and Decision in Principle usually describe the same early lender assessment. |
| How long does a Mortgage in Principle last? | A Mortgage in Principle often lasts between 60 and 90 days, depending on the lender. If it expires, you may need to request a new one. |
| Does a Mortgage in Principle affect your credit score? | It depends on the credit check used. Some lenders use a soft search, while others may use a hard search. Always check before applying. |
| Can a Mortgage in Principle be declined? | Yes. A lender may decline a Mortgage in Principle if your income, affordability, credit history or other details do not meet its criteria. |
| Can a full mortgage application be declined after a Mortgage in Principle? | Yes. A Mortgage in Principle is not a guarantee. A full application can still be declined after detailed underwriting, document checks or property valuation. |
| Do estate agents ask for a Mortgage in Principle? | Some estate agents ask for one before treating an offer as serious. It can help show that you have checked your likely borrowing position. |
| What documents do I need for a Mortgage in Principle? | You may need income details, address history, deposit information and details of regular commitments. For a full application, lenders usually ask for ID, bank statements, payslips or self-employed income documents. |
| Should first-time buyers get a Mortgage in Principle? | Many first-time buyers find it useful because it helps them understand their budget before viewing homes or making offers. |
| How can Connect Experts help? | Connect Experts helps you find mortgage advisers across the UK. You can search by location, language, gender and mortgage expertise, then contact an adviser who matches your needs. |
Important Information
Connect Experts is a mortgage adviser directory and matching platform. We do not provide mortgage advice directly. Advice is provided by the adviser or company you choose.
We are an FCA-approved broker network and not a lender. Advisers may have access to a range of lenders. If a lender is introduced, commission may be received after completion. The commission amount may vary by lender and product, but it should not affect the amount you pay under your credit agreement.
A fee may be payable for arranging your mortgage. Your adviser will confirm the amount before you choose to proceed.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or loans secured on it.