A Mortgage in Principle. You've probably heard the phrase. Maybe you've been told you need one before you can view properties. Maybe you're not sure what it actually is or whether it truly matters.
Let us give you the straight answer.
What is a Mortgage in Principle?
A Mortgage in Principle (MIP) — also called an Agreement in Principle or Decision in Principle, depending on the lender — is a written indication from a lender that they'd be willing to lend you a specific amount, based on an initial assessment of your finances.
It's not a formal offer. It doesn't guarantee you'll get the mortgage. But it's a serious, documented statement that says "based on what we can see right now, you should be able to borrow X".
Does it actually matter?
Yes. More than most people realise.
Estate agents use it as a filter. When you make an offer on a property, the first thing a competent agent will ask is whether you have a MIP. If you don't, your offer gets deprioritised — especially if another buyer with a MIP is in the running.
In a competitive market (which most UK markets are, most of the time), being the buyer who has a MIP ready to hand over is a genuine advantage. Sellers feel more confident. Agents are more likely to push your offer.
Does it affect your credit score?
It depends on the type of search the lender runs.
There are two types: a soft credit search and a hard credit search. A soft search doesn't leave a mark on your credit file. A hard search does — and multiple hard searches in a short period can have a small negative effect on your score.
Most brokers will run a soft search for a MIP, which leaves no trace. When you actually apply for the mortgage itself, that's when the hard search happens. One hard search has minimal impact. Five of them in a month looks like you're desperately scrambling for credit.
When we do a MIP for you, we run a soft search. We've seen clients come to us after getting MIPs from three or four different lenders directly — each one doing a hard search. We can avoid that entirely.
How long does it last?
Most MIPs are valid for 60–90 days. After that, you'd typically need to refresh it — which is usually a quick process if your circumstances haven't changed.
If you're six months away from being ready to buy, there's no rush to get one now. But once you're actively viewing and potentially making offers, you want it in hand.
What if the MIP is declined?
This is actually useful information. Better to know now than to fall in love with a property and then find you can't get the finance.
A decline — or a MIP that comes in lower than you expected — tells you what's getting in the way. It might be your credit file. It might be your income structure. It might be the type of property. Understanding the obstacle is the first step to solving it.
How quickly can you get one?
With us, typically same day. We'll ask for some basic information — income, employment, deposit, the rough purchase price you're targeting — and come back to you with what you're likely to be offered and from which lenders.
There's no commitment required. No fee at this stage. It's just the first sensible step.
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