How to Get a Mortgage in Principle

Published 24 September 2026

The below article has information contained within that was correct at the time of publication but is subject to change. This is for information purposes only and does not constitute advice.

How to Get a Mortgage in Principle

Written by Doug Miller, Director at Lansdown Financial Services.

Doug Miller is a mortgage broker and co-founder of Lansdown Financial Services, based in Bath, quoted in 30+ news articles including the Guardian, Sky News, This is Money and the Sun.

If you’re thinking about buying a home, getting a Mortgage in Principle is one of the most useful things you can do before seriously viewing properties.

It gives you an initial indication of how much a mortgage lender may be prepared to lend, helping you understand your potential property budget before making an offer.

You’ll also hear it called an Agreement in Principle (AIP) or Decision in Principle (DIP). These terms generally refer to the same stage of the mortgage process.

Getting one can be relatively straightforward, but choosing the right lender matters. Different lenders assess income, financial commitments and credit history differently, which can affect how much you might be able to borrow.

Key Points: The Short Version

Don’t have time to read the full article? Here are the six key things you need to know.

• A Mortgage in Principle shows how much you might be able to borrow: It’s an initial indication from a lender based on your financial circumstances, not a guaranteed mortgage offer.
• You can apply through a mortgage broker or directly with a lender: A broker can help identify lenders whose criteria suit your circumstances before applying.
• You’ll need details of your finances: This usually includes your income, deposit, regular expenditure, existing credit commitments and address history.
• Credit checks vary between lenders: Many use a soft credit search, but some may carry out a hard search.
• Mortgage in Principles are usually valid for 30–90 days: At Lansdown, the Mortgage in Principles we typically arrange are valid for 90 days.
• You don’t need to have found a property: Getting a Mortgage in Principle before seriously house hunting can help establish your budget and demonstrate to estate agents that you’ve considered your mortgage arrangements.

The bottom line: A Mortgage in Principle is a useful first step towards buying a home. It helps you understand your potential borrowing capacity, but the lender must still approve your full mortgage application and the property before issuing a formal mortgage offer.

The Full Guide: How to Get a Mortgage in Principle

Want to understand the detail? Below, we explain how to apply for a Mortgage in Principle, what information you’ll need, how credit checks work and what happens once you’ve found a property.

In This Guide

• What a Mortgage in Principle is
• How to get a Mortgage in Principle step by step
• Documents and information required
• Credit checks and borrowing assessments
• How long a Mortgage in Principle lasts
• Whether you need one before viewing properties
• Mortgage in Principle versus mortgage offer
• Frequently asked questions

What Is a Mortgage in Principle?

A Mortgage in Principle is an initial indication from a mortgage lender of how much it may be prepared to lend you.

The lender considers information about your financial circumstances, which may include your income, financial commitments, deposit and credit history.

If you meet its initial requirements, it can provide an indication of your potential borrowing amount.

For example, if a lender indicates it may be prepared to lend you £250,000 and you have a £50,000 deposit, that could suggest a potential property budget of £300,000, before purchase costs and subject to full affordability checks.

However, the lender hasn’t yet fully assessed your application or the property you’re purchasing.

A Mortgage in Principle is therefore an indication of borrowing potential rather than a commitment to lend.

Is an Agreement in Principle the Same as a Mortgage in Principle?

Usually, yes.

Different lenders use different terminology for essentially the same stage of the mortgage process.

Term	Meaning
Mortgage in Principle (MIP)	Initial indication of potential mortgage borrowing.
Agreement in Principle (AIP)	Another name for a Mortgage in Principle.
Decision in Principle (DIP)	Commonly used by mortgage lenders and brokers.
Approval in Principle	Another term sometimes used for an initial lending decision.

Although the names differ, none represents a guaranteed formal mortgage offer.

How Do You Get a Mortgage in Principle?

You can arrange a Mortgage in Principle through a mortgage adviser or apply directly to a bank or building society.

At Lansdown Financial Services, we generally follow a straightforward process designed to establish your borrowing potential before approaching a lender.

Step	What happens
1. Discuss your requirements	We establish your deposit, property budget and what you’re hoping to buy.
2. Review your finances	We assess your income, expenditure, existing commitments and relevant circumstances.
3. Identify suitable lenders	We consider which lenders’ affordability and eligibility criteria may fit your situation.
4. Submit the application	We arrange a Mortgage in Principle with an appropriate lender.
5. Receive the decision	The lender provides an initial borrowing indication if its requirements are met.
6. Begin your property search	You can start viewing properties with a clearer understanding of your potential budget.

1. Understand Your Borrowing Requirements

The first step is establishing what you’re trying to achieve.

We’ll want to know how much deposit you have available, roughly how much you’d like to borrow and the type of property you’re considering.

We’ll also discuss your income, employment and existing financial commitments.

This helps us understand which mortgage lenders may be suitable before submitting an application.

2. Assess Your Affordability

Mortgage lenders don’t all calculate affordability in the same way.

For example, some lenders may take different approaches to bonuses, commission, overtime or self-employed income.

Your existing credit commitments, childcare costs, dependants and other expenditure can also affect how much you’re able to borrow.

Rather than simply multiplying your annual salary by a general figure, we’ll consider how appropriate lenders are likely to assess your individual circumstances.

This helps make the Mortgage in Principle more meaningful.

3. Choose an Appropriate Mortgage Lender

One of the benefits of using a mortgage broker is that you don’t need to identify the lender yourself.

At Lansdown Financial Services, we have access to more than 70 lenders, including high-street banks, building societies and specialist mortgage providers.

We’ll consider which lenders may be comfortable with your circumstances before arranging a Mortgage in Principle.

This can be particularly useful if you’re self-employed, a company director, a contractor or receive income from several different sources.

4. Apply for Your Mortgage in Principle

Once we’ve identified an appropriate lender, we can submit the Mortgage in Principle application on your behalf.

The lender will consider the information provided and may carry out a credit search.

In straightforward circumstances, a decision can often be obtained quickly, sometimes on the same day.

More complex cases may require additional information or take longer.

If successful, the lender will provide an indication of how much it may be prepared to lend.

You can then begin your property search with a clearer understanding of your potential borrowing capacity.

What Documents Do You Need for a Mortgage in Principle?

The exact information required varies between lenders.

However, it’s useful to have the following information available before speaking to a mortgage adviser.

Information	Examples
Personal details	Full name, date of birth and recent address history.
Employment and income	Salary, bonuses, commission or self-employed earnings.
Deposit	Amount saved and where the funds are coming from.
Monthly commitments	Loans, credit cards, car finance and other regular financial obligations.
Household circumstances	Dependants, childcare costs and relevant expenditure.
Property requirements	Approximate purchase price and the type of home you’re considering.

You may also be asked for supporting documents, such as payslips, bank statements or self-employed income evidence, depending on the lender and the level of assessment required.

It’s important to provide accurate information.

If your income or financial commitments are entered incorrectly, the borrowing amount indicated may not reflect what the lender would actually approve.

We’d rather establish a realistic borrowing figure at the beginning than discover an affordability problem after you’ve made an offer on a property.

Does a Mortgage in Principle Affect Your Credit Score?

Not necessarily.

Whether a Mortgage in Principle affects your credit file depends on the type of search the lender performs.

Soft Credit Searches

Many mortgage lenders use a soft credit search when producing a Mortgage in Principle.

A soft search doesn’t normally affect your credit score and isn’t visible to other lenders assessing your credit applications in the same way as a hard search.

Hard Credit Searches

Some lenders may carry out a hard credit search.

This leaves a record on your credit file and may affect your credit score.

Multiple hard credit searches within a short period can potentially make future applications more difficult.

This is one reason we wouldn’t recommend submitting unnecessary Mortgage in Principle applications to several lenders simply to see what happens.

If you’ve previously experienced missed payments, defaults or other credit issues, it’s worth discussing these with your adviser before applying.

A previous credit problem doesn’t automatically mean you won’t qualify for a mortgage, but it may influence which lender is most appropriate.

How Long Does a Mortgage in Principle Last?

Mortgage in Principles are generally valid for between 30 and 90 days, depending on the lender.

At Lansdown Financial Services, the Mortgage in Principles we typically arrange are valid for 90 days.

This gives you time to begin viewing properties and hopefully find a suitable home.

If you haven’t found somewhere before your Mortgage in Principle expires, it may be possible to renew it or arrange another one.

However, your circumstances should be reviewed before reapplying.

For example, your income might have changed, you may have taken out new credit or your deposit could have increased.

Keeping the information up to date helps ensure that your borrowing indication remains realistic.

Do You Need a Mortgage in Principle Before Viewing Houses?

A Mortgage in Principle isn’t generally a legal requirement before viewing properties or making an offer.

However, we’d recommend understanding your mortgage position before becoming too involved in your property search.

There are two main benefits.

Firstly, it helps establish a realistic budget.

There’s little point concentrating on properties costing £450,000 if your realistic budget is closer to £350,000.

Knowing your potential borrowing amount can help you search more confidently.

Secondly, it can demonstrate to estate agents that you’re financially prepared.

Estate agents may ask whether you’ve spoken to a mortgage adviser or obtained a Mortgage in Principle before considering an offer.

Having one can show that you’ve already taken steps to understand your borrowing position.

Can an Estate Agent Make You Use Their Mortgage Adviser?

No. You’re free to choose your own mortgage broker or apply directly to a lender.

An estate agent may recommend an in-house or associated mortgage adviser, but you aren’t obliged to use that service simply because you’re buying a property through the agency.

Estate agents can reasonably ask for evidence of your ability to proceed with a purchase, but they shouldn’t make using their own mortgage adviser a condition of your offer being considered.

If you’ve already arranged a Mortgage in Principle through Lansdown Financial Services, you can provide evidence of your borrowing position where appropriate.

Does a Mortgage in Principle Guarantee You’ll Get a Mortgage?

No. A Mortgage in Principle isn’t a guaranteed mortgage offer.

This is one of the most important distinctions to understand.

A Mortgage in Principle is based on an initial assessment of your circumstances.

Once you’ve found a property, the lender will need to carry out more detailed checks before deciding whether to offer the mortgage.

These can include verifying your income, reviewing supporting documents, carrying out further credit and affordability checks, and assessing the property.

The property itself matters because it acts as security for the mortgage.

You could therefore receive a positive Mortgage in Principle but encounter difficulties later if the lender considers the property unsuitable.

Mortgage in Principle vs Formal Mortgage Offer

Mortgage in Principle	Formal mortgage offer
Initial indication of potential borrowing.	Formal lending offer for a specific property.
Based on preliminary information and checks.	Issued following a more detailed application and assessment.
Usually obtained before finding a property.	Usually issued after your offer on a property has been accepted.
Doesn’t guarantee mortgage approval.	Confirms the lender is prepared to lend, subject to the offer’s conditions.

A Mortgage in Principle is a positive first step, but it isn’t the final stage of the mortgage process.

Can a Mortgage in Principle Be Declined?

Yes.

A lender may decline an application if your circumstances don’t meet its initial lending criteria.

Possible reasons include credit history, existing debts, affordability or the type of income you receive.

However, being declined by one lender doesn’t automatically mean another lender will reach the same decision.

Different lenders assess applications differently.

If a Mortgage in Principle is declined, we’d first want to understand why.

Submitting applications to several additional lenders without identifying the problem isn’t normally a sensible approach, particularly where hard credit searches may be involved.

Sometimes the answer is finding a lender whose criteria better match your circumstances.

In other situations, there may be something worth addressing before proceeding.

What Happens After Your Mortgage in Principle Is Approved?

Once you’ve received a Mortgage in Principle, you can begin viewing properties and making offers with a clearer understanding of your potential budget.

When you’ve found a suitable property and had your offer accepted, the next stage is arranging the full mortgage application.

At Lansdown Financial Services, we’ll review the available mortgage products again rather than automatically proceeding with the lender originally used for your Mortgage in Principle.

This matters because mortgage rates may have changed, and we’ll now know the exact property, purchase price, deposit and amount you need to borrow.

We’ll then recommend a suitable mortgage and, once you’re happy to proceed, submit your full application.

The lender will carry out its underwriting checks and assess the property.

If everything is satisfactory, it can issue a formal mortgage offer.

Frequently Asked Questions About Mortgage in Principle Applications

Is It Free to Get a Mortgage in Principle?

Many lenders provide Mortgage in Principle decisions without a charge.

Some mortgage brokers may charge for their services, so it’s worth checking before proceeding.

At Lansdown Financial Services, we provide free mortgage advice and don’t charge a separate broker fee.

Can You Get a Mortgage in Principle Without Finding a Property?

Yes. A Mortgage in Principle is usually arranged before you’ve found a property.

It helps you understand how much you may be able to borrow so you can establish a suitable property budget.

Can You Have More Than One Mortgage in Principle?

Potentially, yes, but there’s usually little benefit in making numerous applications without a clear reason.

Different lenders have different criteria, and some may carry out hard credit searches.

It’s generally better to identify suitable lenders before applying rather than submitting multiple speculative applications.

When Should You Apply for a Mortgage in Principle?

Ideally, when you’ve saved a deposit and are preparing to begin seriously viewing properties.

Getting one before making offers can help you establish your budget and demonstrate that you’ve taken steps to arrange your mortgage finances.

How Lansdown Financial Services Can Help

Getting a Mortgage in Principle can be relatively straightforward.

However, choosing the most appropriate lender and obtaining a realistic indication of your borrowing capacity can require more careful consideration.

At Lansdown Financial Services, we take the time to understand your income, deposit, financial commitments and property plans before approaching a mortgage lender.

Whether you’re buying your first home, moving property or have more complex income arrangements, our award-winning mortgage advisers can help you understand your borrowing options and arrange a Mortgage in Principle with a suitable lender.

Once you find a property, we’ll review the mortgage market again, recommend an appropriate product and guide you through the full application process.

As a free, whole-of-market mortgage adviser with access to more than 70 lenders, we provide straightforward, personalised advice without the jargon.

Ready to start looking for your next home, or want to understand how much you could borrow?

Contact Lansdown Financial Services or call 01225 459515 to speak to one of our award-winning mortgage advisers for free, expert mortgage advice.

Your home may be repossessed if you do not keep up repayments on your mortgage.

About the Author

Written by Doug Miller, Director at Lansdown Financial Services.

Doug Miller is a mortgage broker and co-founder of Lansdown Financial Services, based in Bath, quoted in 30+ news articles including the Guardian, Sky News, This is Money and the Sun.