5 min read
Getting a mortgage in principle helps you understand your budget and reassures sellers that you’re a serious buyer. If you’re a first-time buyer or just want a refresher on the process, we explain how to apply and share our tips to improve your chances of approval.
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A mortgage in principle shows sellers you’re a serious buyer and helps you set a realistic budget before house hunting.
A mortgage in principle is usually are valid for 30–90 days and often involves a soft credit check.
You’re not tied to a lender until you receive and accept a formal mortgage offer.
A mortgage in principle is an initial indication of whether you will be approved for a mortgage of a requested amount. A mortgage in principle is also known as an agreement in principle, decision in principle, a mortgage promise, or a lending certificate – these all refer to the same thing.
It strengthens your application as a buyer and gives you a concrete budget to work with. It’s important to note that a mortgage in principle is not a formal mortgage offer and is not legally binding. You still need to apply for a full mortgage once your offer on a property is accepted.
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Securing a mortgage in principle before you begin your property search offers several advantages. Firstly, it will help you understand your buying power and focus your search on properties within your price range.
Having a mortgage in principle also strengthens your position when making offers. Sellers and estate agents are more likely to take you seriously because it shows you're prepared and financially capable. It can even speed up the buying process once your offer is accepted since you've already completed part of the mortgage application.
Finally, applying for a mortgage in principle can help you spot and resolve any potential issues before you make an offer on a property, such as credit or affordability barriers. You can then work on rectifying these before making a formal mortgage application.
Find out more about the cost of buying a house.
Your mortgage in principle is typically valid for 30 to 90 days, depending on the lender. If you haven’t found a property or your offer hasn’t been accepted, you might be able to renew its terms after that period.
However, even within this time frame, your mortgage in principle may become invalid if your circumstances change – for example, changes to your income, new debts, or a significant shift in interest rates.
When you're looking to get a mortgage in principle, you have a couple of options to consider. One route is to consult a mortgage broker who can help you explore mortgage deals you might qualify for. Alternatively, you can reach out directly to a lender, especially if there's a specific deal that interests you.
While it might simplify things to get an agreement in principle from the mortgage provider you're likely to choose, it's not essential. You're not tied to that lender at this stage, so you can still change your mind about who to borrow from when it comes to applying for a full mortgage. There's no need to worry about being locked in too early.
Typically, you can complete the process online in roughly 10 - 15 minutes through your lender’s website, and you will get your results within a day.
Getting an agreement in principle is straightforward, and you can start your application as soon as you’ve decided you’re ready to house-hunt, as it might save you time when getting your offer accepted.
For a mortgage in principle, you’ll just need to provide your personal details for credit and affordability checks, including:
A valid ID with your name and date of birth
National insurance number
Proof of income and employment status
Outgoings and financial commitments
Deposit and estimated purchase details
After you’ve applied for a mortgage in principle, your lender will make either a ‘soft’ or ‘hard’ credit check to assess your eligibility by reviewing your credit history and debts (like loans and credit cards). Soft searches don’t harm your credit score and aren’t visible to potential lenders that may review your credit reports, however, hard searches will show that you’ve applied for credit. Having a lot of hard searches could negatively affect your credit score, as it suggests to mortgage providers that you’re having difficulties getting accepted by other lenders.
Most UK lenders now use soft credit checks for agreements in principle, but policies can vary. To avoid any surprises, it’s worth checking with your lender what level of credit check they’ll run.
We know every penny counts when you're buying your first home. That's why we're giving first-time buyers £100 off their legal fee — one less cost to worry about as you get ready for the big move.
Once you've got your quote, simply call our Move Specialists on 0333 234 4425 and they can apply your £100 discount for you. Alternatively, book a call and they'll call you back at a time that suits you.
*Subject to Terms and Conditions. Offer ends 31.10.26
Lenders consider several factors when deciding whether to grant you a mortgage in principle, such as:
Credit history and credit score: A strong credit score increases your chances of approval.
Income and employment stability: Having stable employment and a consistent income reassures lenders that you can repay the mortgage.
Existing debts and monthly commitments: Lenders assess your existing financial commitments to make sure you can handle additional debt.
Deposit size and loan-to-value (LTV): A larger deposit can improve your chances of approval and might even get you better mortgage rates.
Before applying, taking a few simple steps can significantly improve your chances of approval.
Check your credit report: Review it for any errors or discrepancies and address any issues that could negatively impact your credit score.
Reduce outstanding debts: This improves your debt-to-income ratio, making you more attractive to lenders.
Avoid applying for credit in the months leading up to your mortgage application: Multiple credit applications can raise concerns among lenders.
Save for a bigger deposit: This can increase your chances of approval and may also result in more favourable mortgage terms.
Yes. In fact, applying for a mortgage in principle is a highly recommended way to test your options. Because most UK lenders only use a soft credit check for a mortgage in principle, it will not damage your credit score or leave a visible mark for other banks to see.
Getting a mortgage in principle tells you early on whether a mainstream lender will accept you, or if you will need to target specialist lenders when applying for a full mortgage. Keep in mind that if your credit rating is poor, your initial certificate might show a lower borrowing amount or assume a higher interest rate than standard deals.
Find out in more depth how to boost your credit score.
Yes, you absolutely can. Getting a mortgage in principle when you are self-employed is a great first step because it gives you a realistic idea of your budget before you start looking at houses.
The online application process is straightforward, but instead of entering a simple monthly salary, you will need to input your recent average earnings. To do this accurately, it helps to have your last one or two years of tax calculations (SA302s) or company accounts on hand. The lender will use these figures to give you a quick, initial estimate of your borrowing power.
Once you have your mortgage in principle, you should have a clearer idea of your budget, and you can then begin to look for properties you can afford. This saves time, focuses your search, and means you're ready to move quickly when you find the right property.
Once you’ve found a property you wish to purchase, the next step is to make a formal offer through the estate agent.
If this offer is accepted, you’ll need to move to a full mortgage application with your chosen lender. This is a significantly more detailed process, covering a full credit check, an affordability assessment, and a valuation of the property.
While your mortgage application is being processed — or ideally as soon as your offer is accepted – you should instruct a conveyancer to handle the legal side of your purchase.
Once your offer has been accepted, choosing the right conveyancer can help keep your purchase moving smoothly. Get a personalised conveyancing quote and be prepared for the next stage of your home-buying journey.
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