What is a Mortgage in Principle and Why Does it Matter?

If you’re house hunting, having a Mortgage in Principle (MIP) can help you stand out to estate agents and sellers.

What Is a Mortgage in Principle?

A Mortgage in Principle is a statement from a lender saying how much they may be willing to lend you, based on basic checks of your finances and credit history. It’s also called an Agreement in Principle (AIP) or Decision in Principle (DIP).

Why Is It Important?

• Gives you a clearer idea of your budget

• Shows sellers you’re serious

• Speeds up the offer process

Does It Guarantee a Mortgage Offer?

No – it’s a preliminary assessment. Once you find a property, the full mortgage application will involve deeper checks including affordability, employment status, and a property valuation.

How Long Does It Last?

Most MIPs are valid for 60 to 90 days. They’re usually quick and easy to get and won’t impact your credit score if done as a soft search.

Top Tip: Always double-check whether your MIP involves a ‘hard’ or ‘soft’ credit check.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE