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How do I Get a Mortgage in Principle



How do I Get a Mortgage in Principle

Purchasing a home is a big decision, and getting a mortgage in principle can be an important first step in the process. But what is a mortgage in principle, and how can you get one?

A mortgage in principle is a conditional agreement from a lender that indicates how much they are willing to lend you, based on an initial assessment of your finances. It’s also known as an Agreement in Principle (AIP) or a Decision in Principle (DIP).

Having a mortgage in principle can be useful as it gives you an idea of how much you can borrow and can help you determine the price range of properties you can afford.

But how do you get a mortgage in principle? In this article, we’ll walk you through the steps to obtain one.

What is Mortgage in Principle?

A Mortgage in Principle is a conditional agreement between a lender and a borrower. It is a statement from a lender that they are willing to lend you a certain amount of money based on the information you have provided. It is not a formal mortgage offer, but it gives you an indication of how much you can afford to borrow, and the interest rate you are likely to be offered.

Why is Mortgage in Principle important?

A Mortgage in Principle is important for several reasons:

  1. Helps you understand your budget: A Mortgage in Principle gives you an idea of how much you can afford to borrow. This helps you narrow down your property search and avoid disappointment later on.
  2. Increases your chances of getting approved: A Mortgage in Principle shows sellers that you are a serious buyer and have taken steps to secure financing. This can give you an advantage in a competitive market.
  3. Saves time: A Mortgage in Principle can speed up the application process once you have found a property you want to buy. It means you have already been credit-checked and the lender has reviewed your financial information, so they will have a good idea of whether or not they are likely to lend to you.

How to get a Mortgage in Principle

Getting a Mortgage in Principle is a straightforward process. Here’s what you need to do:

  1. Choose a lender: Research different lenders to find one that offers the best rates and terms for your circumstances.
  2. Provide your information: You will need to provide your personal information, including your income, expenses, and any outstanding debts. The lender will also need to know the size of the deposit you have available.
  3. Credit check: The lender will perform a credit check to assess your creditworthiness. This will involve a search of your credit report, which shows your borrowing history and any outstanding debts.
  4. Receive your Mortgage in Principle: If your application is successful, the lender will provide you with a Mortgage in Principle certificate. This will show how much you can borrow and the interest rate you are likely to be offered.

Step 1: Check your credit score

Your credit score is a crucial factor in determining whether or not you’ll be approved for a mortgage in principle. Lenders will use your credit score to assess your creditworthiness and to determine the interest rate you’ll be offered.

Before applying for a mortgage in principle, it’s essential to check your credit score. You can obtain your credit score from a credit reference agency such as Experian or Equifax. If your credit score is lower than you’d like it to be, you may want to take steps to improve it before applying for a mortgage in principle.

Step 2: Gather your financial information

When you apply for a mortgage in principle, you’ll need to provide information about your income, expenses, and debts. It’s a good idea to gather this information before applying, so you have everything you need at your fingertips.

Here are some of the documents and information you may need to provide:

  • Proof of income, such as payslips or tax returns
  • Details of any debts or loans you have
  • Bank statements from the last few months
  • Proof of your identity and address, such as a passport and a utility bill

Step 3: Speak to a mortgage advisor

To get a mortgage in principle, you’ll need to speak to a mortgage advisor. A mortgage advisor can help you find the best mortgage deal for your circumstances and can guide you through the application process.

You can speak to a mortgage advisor in person, over the phone, or online. Make sure to choose an advisor who is qualified and has experience in the mortgage market.

Step 4: Fill out an application form

Once you’ve spoken to a mortgage advisor, you’ll need to fill out an application form for a mortgage in principle. The form will ask for your personal and financial information, as well as details about the property you’re interested in.

Make sure to provide accurate and complete information on the application form, as any errors or omissions could delay or even prevent your application from being approved.

Step 5: Wait for the decision

After you’ve submitted your application, you’ll need to wait for a decision. The lender will review your application and assess whether or not they’re willing to lend you the amount you requested.

If your application is approved, you’ll receive a mortgage in principle certificate. This certificate will state the amount you can borrow and the interest rate you’ve been offered. It’s important to remember that the mortgage in principle is not a guarantee of a mortgage offer, and the lender will still need to conduct a full assessment of your finances before approving the final mortgage offer.


  1. Is a Mortgage in Principle a guarantee that I will get a mortgage?

No, a Mortgage in Principle is not a guarantee that you will get a mortgage. It is a conditional offer, subject to further checks and assessment.

  1. How long does a Mortgage in Principle last?

A Mortgage in Principle typically lasts for up to 90 days, although some lenders may offer longer periods.

  1. Can I get more than one Mortgage in Principle?

Yes, you can apply for a Mortgage in Principle with multiple lenders to compare rates and terms.

  1. Does getting a Mortgage in Principle affect my credit score?

Getting a Mortgage in Principle involves a credit check, which can temporarily lower your credit score. However, multiple checks within a short period can have a negative impact on your score, so it’s important to choose lenders carefully.

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