Before you start viewing properties — or even scrolling Rightmove — one document can make the entire process smoother, faster, and more credible. Here's everything you need to know about the Mortgage in Principle.
If you've started looking into buying a home, you've probably come across the term "Mortgage in Principle." Estate agents will often ask for one before arranging viewings, and sellers take buyers far more seriously when one is in place. But what actually is it, how do you get one, and what does it mean for your credit score? Let's break it down.
A Mortgage in Principle (MIP) — also called a Decision in Principle (DIP), Agreement in Principle (AIP), or sometimes a "mortgage promise" — is a statement from a lender indicating how much they would, in principle, be willing to lend you. It's based on an initial assessment of your income, outgoings, and a soft credit check.
It is not a formal mortgage offer, and it doesn't guarantee that you'll be approved when you make a full application. But it gives you a reliable indication of your budget and demonstrates to sellers and estate agents that you're a serious, credit-checked buyer.
MIP, DIP, AIP — what's the difference? Absolutely nothing. All three terms refer to exactly the same document. Different lenders and brokers simply use different names. If someone asks for your "decision in principle" or "agreement in principle," they want the same thing.
There are three practical reasons to get a Mortgage in Principle before you begin house hunting:
- It gives you a clear, lender-assessed budget so you're viewing properties you can realistically afford — not just aspirationally
- It shows estate agents and sellers that you've completed an initial financial check and are ready to proceed — in a competitive market, this can be the difference between securing a viewing or having a seller accept your offer
- It can surface any credit or affordability issues early, giving you time to address them before you fall in love with a property
No — provided the lender carries out a soft credit check, which is the standard approach for a Mortgage in Principle. A soft search does not leave a visible footprint on your credit file and cannot be seen by other lenders.
It's only when you proceed to a full mortgage application that a hard credit check is carried out, which will appear on your file. Always confirm whether a lender is conducting a soft or hard search before proceeding — particularly if you're shopping around with multiple lenders.
The process is designed to be quick and straightforward. You'll typically need:
- Your personal details and address history for the past three years
- Details of your income (including any bonus, commission, or overtime)
- Your monthly outgoings and existing credit commitments
- Your National Insurance number
Most applications can be completed online in around 10–15 minutes.
Most lenders issue a Mortgage in Principle valid for 60 to 90 days. This gives you a practical window in which to search for and make an offer on a property. If your search takes longer, you can usually renew your MIP easily — as long as your financial circumstances haven't significantly changed, this won't affect your credit score.
You can obtain a Mortgage in Principle directly from a bank or building society, but there's a significant advantage to going through an independent mortgage broker instead. A broker can check your situation against multiple lenders simultaneously — not just one bank's products — to find which lenders are most likely to accept you and at what maximum borrowing level.
This is especially valuable if your income is complex (self-employed, multiple sources, bonus-heavy), or if you have any historic credit issues. At Friends Capital, we can typically have your Mortgage in Principle arranged the same day.
- A Mortgage in Principle is an initial lending estimate — not a guaranteed mortgage offer
- It uses a soft credit check, so it won't damage your credit score
- Estate agents routinely ask for one before arranging property viewings
- It takes around 10–15 minutes to obtain and is free of charge
- It's valid for 60–90 days and can be renewed if needed
- A broker can check multiple lenders at once, rather than just one bank's criteria
Getting a Mortgage in Principle should be one of the very first steps in your home-buying journey — ideally before you begin viewing properties. It costs nothing, takes minutes, and gives you a real advantage in a competitive market.
Ready to get yours sorted? At Friends Capital, we can arrange your Mortgage in Principle quickly — often the same day. Visit www.friendscapital.co.uk to get started.