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Mortgage in Principle
Get an agreement in principle for a mortgage.
What is a mortgage in principle?
A mortgage in principle, also known as a decision in principle (DIP), agreement in principle (AIP) or approval in principle, is an indication from a lender of how much you could potentially borrow based on the information you provide.
It can help you understand what you might be able to afford and show estate agents and sellers that you’re a serious buyer and can, in theory, get a mortgage.
What you need to know
It can help with your property search: A mortgage in principle can show estate agents and sellers that you’re serious about buying and have an indication of how much you could borrow. Many estate agents may ask to see one before arranging a viewing. It isn’t a legal requirement, but you could be at a disadvantage if you don’t have one, particularly in a competitive market.
It’s usually valid for up to 90 days: Depending on the lender, your mortgage in principle may be valid for around 30 to 90 days. If it expires before you make an offer, you can usually renew it if your circumstances haven’t changed.
It isn’t a formal mortgage offer: A mortgage in principle is only an indication of what a lender might be prepared to lend. You’ll still need to make a full mortgage application and pass the lender’s underwriting checks before you receive a formal mortgage offer.
What do I need for a mortgage in principle?
When you apply for a mortgage in principle, the lender or adviser will ask for:
Personal details, such as your name, date of birth, and address
Address details for the past three years
Information about your income, monthly outgoings, and existing credit agreements (like credit cards and loans)
The lender will use the information to indicate what they're willing to lend you ‘in principle’. They will then give you a letter or certificate stating the maximum amount it could potentially lend.
You won’t need supporting documents, such as payslips or bank statements, to get a mortgage in principle. But you will need these when you make a full mortgage application.
Need help with your mortgage?
A mortgage adviser can help you work out how much you could borrow, explain your options and find a mortgage that suits your circumstances.
What’s the difference between a mortgage in principle and a formal mortgage offer?
A mortgage in principle and a formal mortgage offer are two different stages of the mortgage process.
Mortgage in principle | Formal mortgage offer | |
|---|---|---|
What is it? | An indication of how much a lender might be prepared to lend based on the information you provide | A formal offer from a lender to provide you with a mortgage for a specific property |
When do you need it? | Before you make an offer on a property, or early in your property search | After your offer on a property has been accepted and you’ve completed a full mortgage application |
Why do you need it? | It can show estate agents and sellers that you’re a serious buyer and give you an idea of your potential borrowing | It confirms that the lender is willing to lend you the agreed amount for the property, subject to the terms of the offer |
Does it affect your credit score? | It depends on whether the lender carries out a soft or hard credit search | The full mortgage application normally involves a hard credit search |
Is it a guarantee? | No. It isn’t a guarantee that you’ll get a mortgage | It is a formal offer from the lender, although it is subject to the terms and conditions of the offer |
Our expert says…
A mortgage in principle can be a useful first step when you’re buying a home. It gives you a better idea of what you could potentially borrow and can reassure estate agents and sellers that you’re serious about buying. It can also help you focus your property search on homes that are likely to be within your budget.
Kara Gammell Personal Finance & Insurance Expert
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Does a decision in principle affect your credit score?
Most lenders run a 'soft' search which won't impact your credit score, but it's always worth checking with the lender if they run a hard or soft check, just in case.
While hard searches shouldn't affect your credit rating, if multiple hard searches are made in a short timeframe, this can lower your chances of being approved for a mortgage when the time comes to apply.
You can use our free credit check tool, Credit Score, to view your credit history and address any issues that may be holding you back.
How to compare mortgages with MoneySupermarket
Mortgage comparison is easy with MoneySuperMarket.
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How do I get a mortgage in principle?
You can usually get a mortgage in principle directly from a bank or building society, through a mortgage adviser or online.
You’ll need to provide information about your income, outgoings, debts and personal circumstances. The lender will use this information to give you an indication of how much it could potentially lend you.
You don’t normally need to provide documents such as payslips or bank statements at this stage, although you’ll need these when you make a full mortgage application.
Does a mortgage in principle affect my credit score?
It depends on the lender and the type of credit search it carries out.
Many lenders use a soft credit search when providing a mortgage in principle. This allows them to look at your credit information without leaving a search that can affect your credit score.
Some lenders may carry out a hard credit search, which is recorded on your credit file.
If you’re unsure which type of search will be carried out, check with the lender before applying.
You can use our free credit check tool, Credit Score, to view your credit history and address any issues that may be holding you back.
When should I get a mortgage in principle?
It can be useful to get a mortgage in principle before you start seriously looking at properties.
It gives you an indication of how much you could potentially borrow and can help you work out what properties might be within your budget. You may also be asked to show one before an estate agent will arrange a viewing or accept an offer, particularly in a competitive market.
Remember that a mortgage in principle isn’t a formal mortgage offer, so you’ll still need to make a full application once you’ve found a property.
How long does it take to get a mortgage in principle?
A mortgage in principle can often be obtained quite quickly, particularly if you apply online and have the information you need to hand.
The exact time will depend on the lender and your circumstances. Some lenders may provide a decision almost immediately, while others may take longer.
How long does a mortgage in principle last?
A mortgage in principle is usually valid for between 30 and 90 days, depending on the lender.
If it expires before you make an offer on a property, you can usually apply for another one. However, check whether the lender will carry out another credit search, particularly if the first application involved a hard search.
Can a mortgage be declined after getting an agreement in principle?
Yes. Getting a mortgage in principle doesn’t guarantee that you’ll be approved for a mortgage.
When you make a full application, the lender will carry out more detailed checks on your finances and may ask for documents such as payslips and bank statements. It will also usually carry out a valuation of the property.
Your circumstances could also have changed since you received your mortgage in principle, or the lender could decide that the property doesn’t meet its lending criteria.
Can a mortgage in principle be withdrawn?
Yes. A mortgage in principle is not a binding commitment from a lender to give you a mortgage.
A lender could withdraw or amend its indication of how much it is prepared to lend if your circumstances change, the information you provided was incorrect or its lending criteria change.
This is another reason not to treat a mortgage in principle as a guarantee that you’ll get a mortgage.
What can go wrong with a mortgage in principle?
A lender may offer to lend you less than you expected, or decide that you don’t meet its lending criteria.
It’s important to provide accurate information when applying. If your circumstances change before you make your full mortgage application, tell your lender or mortgage adviser, as this could affect how much you can borrow.
What’s the difference between a mortgage in principle and a mortgage offer?
There’s a big difference between a mortgage in principle and a mortgage offer. A mortgage offer is an official confirmation from a lender that it will give you a mortgage for a particular property.
You can make an offer for a property based on a mortgage in principle. Once accepted, you’ll need a full mortgage offer to go any further.
To get a mortgage offer, you’ll have to complete the full mortgage application process and provide all the information the lender requires to carry out its underwriting checks and conduct a valuation of the property.
Do you need a mortgage in principle to view a house?
Not necessarily. There is no general legal requirement to have a mortgage in principle before viewing a property.
However, some estate agents may ask to see one before arranging a viewing or accepting an offer. This can be more common when there are lots of potential buyers and relatively few properties for sale.
Having a mortgage in principle can therefore put you in a stronger position when you’re ready to make an offer.
Can you get a mortgage in principle as a first-time buyer?
Yes. You can get a mortgage in principle as a first-time buyer, and it can be particularly useful when you’re starting your property search.
It can give you an indication of how much you could potentially borrow and help you work out what properties you can afford. It can also reassure estate agents and sellers that you’re serious about buying.
Can you get more than one mortgage in principle?
Yes, you can get more than one mortgage in principle. However, you should be careful about making multiple applications if they involve hard credit searches.
If you’re considering mortgages from different lenders, check what type of credit search they use before applying. A mortgage adviser can also help you compare your options without making unnecessary applications.
Consider the fees
Remember to always factor additional fees into the overall cost of any deal. Even if a lender is offering a seemingly unbeatable rate, steep fees could mean that it actually works out to be more cost-effective to opt for a higher rate with much lower fees or no fee at all.
The best remortgage rate for you depends on how much you are looking to borrow. A high fee is often worth paying in order to secure a low interest rate if you are applying for a large mortgage. But those with smaller mortgages could be better off opting for a higher rate and lower fee.
However, while this is the general rule, you need to work out the total cost over the term of the deal. For example, if you are going for a two-year fixed rate, you need to work out the cost of your repayments over the term. You can do this by finding out what the monthly payment will be using our mortgage calculator – and then multiplying by 24. You then need to add on the arrangement fee to find out the total cost.
Credit history
You will likely find that you have more mortgage deals to choose from if you have a good credit history, so it’s worth making sure that your credit report is as good as it can be before applying for a remortgage. Paying off any outstanding borrowed credit you owe and making sure your current address is on the electoral roll can help to improve your credit score.
Save a deposit
The more money you can save as a deposit, the less you’ll need to borrow as a mortgage loan. What’s more, having a bigger deposit can help you get access to more competitive mortgage rates.
Lenders will often have a maximum loan-to-value ratio they’re prepared to offer you. Instead, the rest will need to be made up with either a deposit or an equity loan like the government's Help to Buy equity loan scheme.
Compare remortgage deals
Using a mortgage comparison tool can give you a better idea of how much you’d need to pay in monthly costs and interest, the duration of the deal, the maximum LTV, and any product fees you may need to pay for the remortgage deals available based on your borrowing requirements.
It’s important to remember that the mortgage deals you’re offered when you go to make an application may differ because they will then be influenced by your financial situation and credit history.
Looking for mortgage advice?
Get free mortgage advice and see deals from the whole of the market with broker London & Country. Call free from your landline or mobile on 0800 170 1943 any day. Read more about London & Country
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But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?
We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.
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Reviewed on 29 Oct 2026 by
Sources and supporting information
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[1]
YouGov Survey 1st July 2025 to 30th June 2026. Net Recommend score derived from "Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?" Base: Current Customers of (MoneySuperMarket n=17,883, Compare the Market n=16,193, Go.Compare n=8,523, Confused.com n=7,918, Uswitch n=514)
