Agreement in Principle
The first step in getting a mortgage is lining up your Agreement in Principle, also known as a Mortgage in Principle or Decision in Principle.
This can be done quickly online and it won't affect your credit score.
You can then speak with an expert who'll compare thousands of mortgage deals, saving you time and money.
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How arranging a Mortgage in Principle works
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Fill in a short form. We just need to know what you need from your next mortgage and a few extra details.
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We’ll get your MIP sorted
Our brokers will tell you your maximum borrowing potential across a wide range of lenders.
When should I apply for a Mortgage in Principle?
You should apply for a Mortgage in Principle the moment you're ready to start looking for a new home.
Having a Mortgage in Principle in place proves you're eligible for a mortgage and gives an indication of how much you could borrow.
It also shows you're a serious buyer to estate agents and sellers, which can be a big help when you're trying to arrange property viewings.
Why should I get an Agreement in Principle?
There are plenty of advantages to getting an Agreement in Principle:
Get an idea of how much you can borrow, giving you more confidence when you apply for a mortgage
Show sellers you’re able to afford the property you’re interested in. Get viewings faster, and be ready to move quickly if you want to make an offer
Lenders and brokers usually only use a soft credit check at MIP stage, so there’s no impact on your credit score
You’ll be one step further along your housebuying journey
How much can I borrow?
Get a quick idea of what you might be able to borrow for your next home.
How long does it take to get a Mortgage in Principle?
The process of applying for a Mortgage in Principle can take between a few minutes to an hour.
You'll usually go through an online questionnaire first, followed by a telephone conversation with a lender or mortgage broker.
Once you've completed the online form, you'll be asked to arrange an appointment at a time that suits you.
How long does a mortgage in principle last?
A Mortgage in Principle is usually valid for between 30-90 days.
If you haven't managed to find a property within that time, you can ask to renew it or apply for another one.
As long as your situation, or the economy, hasn't changed dramatically, then renewing your MIP should be fairly straightforward.
How much could my mortgage repayments be?
Get a quick idea of how much it's going to cost each month or how a rate change could affect your monthly payments.
How to get a Mortgage in Principle
There are two ways to go about securing a Mortgage in Principle.
1: Approach banks and building societies
You can approach any lender to get a Mortgage in Principle.
The amount each lender may allow you to borrow, in principle, may vary. So if your chosen lender offers you a lower borrowing amount than you’d hoped for, you may wish to get another MIP elsewhere.
You can approach as many lenders as you wish to find the best Mortgage in Principle for you, although it can be time-consuming to repeat the process with each lender.
2: Work with a mortgage broker
A broker MIP isn't usually tied to one specific lender, so it will give you a more general idea of how much you can borrow.
Working with a mortgage broker can help to speed up the process and reduce the stress of manually getting lots of different MIPs from separate lenders.
They can also help if your credit rating isn’t where it ideally needs to be, you have income/affordability issues, a less straightforward employment history or are buying a unique property.
Mortgage in Principle FAQs
What do you need for a mortgage in principle?
To arrange your Mortgage in Principle you'll need documents that prove:
Your address history
Photo ID
Name and date of birth
Proof of income
Recent bank statements (usually going back 3-6 months)
Proof of deposit
Details of your monthly outgoings and expenses
What happens after a Mortgage in Principle?
Your Mortgage in Principle is usually valid for between 30-90 days, so the next step is to find a property within your price bracket and put in an offer.
Once the offer has been accepted, you'll return to your lender or broker and go through the full mortgage application process with them.
The process of moving from MIP to a full mortgage offer takes between 2-4 weeks.
Is a Mortgage in Principle the same as a mortgage offer?
A Mortgage in Principle gives a good indication of what you can borrow but it's not the same as a mortgage offer.
If a lender uncovers something that doesn't meet their acceptance criteria when offering a mortgage, it is possible that you may not get a mortgage offer from them.
That said, as long as your personal circumstances - and the economic climate - haven't changed since you secured your MIP, then it's a reliable first step in indicating how much you'll be able to borrow.
Mortgage in Principle: what can go wrong?
You're not offered the full amount you were hoping for. If this happens, you're free to approach other lenders, but it's worth checking whether they conduct a soft or hard credit check at this stage. Too many hard credit checks can damage your credit rating.
Your financial circumstances change. If, for example, you lose your job, or separate from your partner when the MIP was offered based on 2 incomes, this could affect your lender's acceptance criteria in offering you a mortgage.
You fail a hard credit check. Some lenders may use a soft credit check to see if you're eligible for a Mortgage in Principle and then run a hard check when it comes to the mortgage offer itself. Others may go straight in with a hard check. But if you fail the hard check, you may be turned down for a mortgage. Even missing a credit card payment could impact your ability to get a mortgage.
The home you want the mortgage for has problems. Your lender will want to value the property you're planning to buy, to check that it's worth what you want to pay for it. Sometimes, there can be issues with the property that mean it doesn't meet the lender's criteria. For example, it has structural issues or is not of 'standard construction'.