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A mortgage in principle (MIP) tells you how much a lender might let you borrow — before you've found a property or made a full mortgage application. It's also called an agreement in principle (AIP) or decision in principle (DIP).
Getting one is free, quick, and won't affect your credit score. Most estate agents will want to see one before they take your offer seriously.
You can get a mortgage in principle from a broker, bank or any other mortgage lender.
We've partnered with Mojo Mortgages, an online broker, who can get a mortgage in principle sorted for you. Here’s how it works:
To get a mortgage in principle, the details you'll need to provide are:
Your lender uses this information and considers your credit history when working out how much they may be willing to offer you.
These are two very different things, it's easy to get them mixed up.
| Mortgage in principle | Mortgage offer | |
|---|---|---|
|
What it is
|
An estimate of what you could borrow
|
A confirmed agreement to lend you the money
|
|
When you get it
|
Before you find a property
|
After your full application is approved
|
|
Is it binding?
|
No
|
Yes
|
|
Credit check type
|
Usually soft
|
Hard
|
|
Based on
|
Basic financial information
|
Full financial and property checks
|
A mortgage offer is what you need to complete a property purchase. A mortgage in principle gets you to the point where you can make a serious offer on a home.
Not necessarily. A MIP is an estimate, not a guarantee. A lender can still decline your full application if:
This is why it's important to keep your finances stable between getting your MIP and completing your full mortgage application - avoid big purchases, new credit applications, or changes to your income if you can help it.
Nothing, they're the same thing. Lenders just use different names. You might also hear it called a decision in principle (DIP). They all refer to an estimate of how much a lender may be willing to lend you before a full mortgage application.
Before you start seriously viewing properties. It's the first step of the house-buying process, not something to sort out once you've found a home you want to make an offer on.
=It can take as little as 10 minutes online. Some MIPs, particularly those verified by a mortgage expert, may take a little longer.
No. It's a good indicator, but the lender will carry out more detailed checks when you make a full application. They can still decline you at that stage.
Possibly, yes, but it'll depend on the severity of the issue and the lender. Getting a mortgage in principle can actually be a useful way to gauge whether a lender is likely to lend to you before you make a full application (which involves a hard credit check).
Technically, no - but practically, yes. Most estate agents won't take your offer seriously without one.
There's no set minimum, but most lenders expect at least a 5–10% deposit. The bigger your deposit, the better your chances of approval and the better rates you'll typically be offered.
"Getting a mortgage in principle early gives you a real advantage. You'll know your budget before you start viewing, you'll be taken seriously by sellers, and you'll move faster when you find the right place. Just make sure you keep your finances stable after getting your MIP, any big changes before your full application could affect the outcome."
The first step to getting a house is making the decision about whether it's better to rent or buy.
Here's some tips to bear in mind when you view property.
The final hurdle before the house is officially yours – swap contracts and insure the building.
Buying a house is an expensive process. Gifted deposits can help.
We look at guarantor mortgages and how they could help you get on the property ladder.
Paying off your mortgage early seems like a good idea, but you could be charged. Here's what you need to know.
YOU SHOULD THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME/PROPERTY. YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Financial Conduct Authority does not regulate mortgages for commercial or investment buy-to-let properties.
Confused.com is not a mortgage intermediary and makes introductions to Mojo Mortgages to provide mortgage solutions.
Confused.com and Mojo Mortgages are part of the same group of companies.Confused.com 2nd Floor, Greyfriars House, Greyfriars Road, Cardiff, CF10 3AL, United Kingdom. Confused.com is a trading name of Inspop.com Limited and is authorised and regulated by the Financial Conduct Authority. FRN 310635
Mojo is a trading style of Life's Great Limited which is registered in England and Wales (06246376). We are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215). Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH.
To contact Mojo by phone, please call 0333 123 0012.
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