A mortgage in principle is a statement from a lender saying they would likely lend you a certain amount, based on a quick check of your finances.
It isn't a mortgage offer, and it isn't legally binding. But in practice, it's the first thing estate agents expect to see when you make an offer.
Most buyers get one before they start viewing properties seriously.
What a mortgage in principle actually is
A lender reviews a snapshot of your financial situation, typically including your income, regular expenses, and credit history, and estimates how much they are willing to lend.
The process normally takes 15–30 minutes and is usually free.
Most mortgage in principle statements remain valid for 60–90 days.
You may also hear it called:
- Agreement in Principle (AIP)
- Decision in Principle (DIP)
These terms all mean the same thing.
Why buyers get one
A mortgage in principle does three useful things:
1. It confirms your budget
Online mortgage calculators are only rough estimates. A mortgage in principle is based on your actual financial details, so the figure is usually closer to what a lender would approve.
2. Estate agents expect it
When you make an offer, agents usually ask for proof you can afford the purchase. A mortgage in principle is the simplest way to show this.
In competitive markets, buyers without one often struggle to have their offers taken seriously.
3. It speeds up the next step
If your offer is accepted, you still need to submit a full mortgage application. But the lender has already completed some of the initial checks, which can make the process quicker.
How to get a mortgage in principle
You can apply directly with a lender online, by phone, or through a mortgage broker.
You'll normally be asked for:
- Three years of address history
- Income details (salary or self-employed earnings)
- Monthly spending and financial commitments
Most applications are completed online and take less than fifteen minutes.
Before applying, ask whether the lender performs a soft credit check or a hard credit check.
A soft check doesn't affect your credit score. A hard check does, and several hard checks in a short period can make future applications harder.
Mortgage brokers and lenders usually use soft checks at this stage.
What a mortgage in principle does not do
It's important to understand the limits.
A mortgage in principle:
- Does not guarantee you'll receive a mortgage
- Does not lock in an interest rate
- Does not assess the property you want to buy
When you apply for the full mortgage, the lender will still:
- Review your finances in detail
- Check supporting documents
- Carry out a property valuation
If your circumstances change between the mortgage in principle and the full application, the lender could still decline the mortgage.
What if you're declined?
Being declined for a mortgage in principle doesn't necessarily mean you can't get a mortgage.
It only means that one lender declined based on the information they saw.
If it happens:
- Check your credit report for errors
- Avoid applying to multiple lenders at once
- Consider speaking with a mortgage broker
Brokers often know which lenders are more flexible with certain situations, such as self-employment or past credit issues.
There are also credit-building tools and apps designed to help improve your score over time. Some report your regular payments (like rent, subscriptions, or savings) to credit agencies, which can gradually strengthen your profile.
When to get a Mortgage in Principle?
Get a mortgage in principle before you start viewing properties seriously.
You don't need one just to browse property listings out of curiosity. But once you start arranging viewings and thinking about making offers, having one in place avoids delays.
It also signals to estate agents and sellers that you're a serious buyer.
Buying a property involves a lot of steps and paperwork. A mortgage in principle is one of the simplest, but it sets the tone for everything that follows.
Ready to take the next step? Find a mortgage advisor in your area.
Disclaimer: This article is for general information only and does not constitute mortgage or financial advice. Always speak to a qualified mortgage advisor before making decisions.