Getting a mortgage in principle in 2025

Buying a new home? A mortgage in principle can give you an estimate of what your budget should be and reassure sellers that you can afford to buy a property. Read on to understand why you need it and how to get one.

In this article:

What is a mortgage in principle?

A mortgage in principle, also knows as an agreement in principle, is an initial indication of whether you will be approved for a mortgage of a requested amount.

Why get a mortgage in principle?

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.

Find out more about the cost of buying a house.

How to get a mortgage in principle?

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.

Applying for a mortgage agreement in principle

Getting an agreement in principle is straightforward. 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.

Typically, you can complete the process online through your lender’s website and will get your results within a day. You’ll just need to provide your personal details, including:

Simplify your home move

Once your Mortgage in Principle is secured, let us handle the legal side of your move. The expert conveyancers we work with can ensure a smooth process from start to finish.

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Factors that affect your mortgage in principle approval

Lenders consider several factors when deciding whether to grant you a mortgage in principle. Your credit history is important – a strong credit score increases your chances of approval. They'll also look at your income and employment status. Having stable employment and a consistent income reassures lenders that you can repay the mortgage.

Your debt-to-income ratio plays a role too. Lenders assess your existing financial commitments to make sure you can handle additional debt. And the amount of deposit you can provide matters – a larger deposit can improve your chances of approval and might even get you better mortgage rates.

Does it affect my credit score?

After you’ve applied for a mortgage in principle, your lender will make a ‘soft’ or ‘hard’ credit check to assess your eligibility, 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, whereas 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.

To avoid any surprises, it’s worth checking with your lender what level of credit check they’ll run.

Tips to improve your chances of approval

Before applying for a mortgage in principle, there are steps you can take to enhance your eligibility. Checking your credit report is essential. Review it for any errors or discrepancies and address any issues that could negatively impact your credit score. Reducing outstanding debts, such as loans and credit card balances, can improve your debt-to-income ratio, making you more attractive to lenders.

It's also advisable to avoid applying for new credit in the months leading up to your mortgage application, as multiple credit applications can raise concerns among lenders. Saving for a larger deposit can not only increase your chances of approval but may also result in more favourable mortgage terms.

How long does a mortgage in principle last for?

Your mortgage in principle typically lasts from 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.

Do I need a mortgage agreement in principle to view a house? 

The short answer is no. However, you may have less chance of an offer being accepted, as many sellers look for buyers who won’t slow down the process. They often want to close a deal as soon as possible, and if you’re not ready, it’s likely that someone else will be. 

What’s the difference between a mortgage in principle and a mortgage offer?

You’ll get a mortgage in principle at the beginning of the house-hunting process when you’re still looking for a house. It’s a written statement that proves you can afford to buy a house but doesn’t guarantee that you’ll get a binding mortgage offer.

Once you’ve made an offer on a house and it has been accepted, you can then move to the next step and officially apply for a mortgage by completing a full mortgage application. During this process the lender will thoroughly review your income and personal information in a detailed assessment of your financial situation. If your application is successful, you’ll then receive a binding mortgage offer within two to six weeks.

How long does it take from mortgage in principle to mortgage offer?

You can use your agreement in principle to apply for a mortgage and it can take between two to six weeks to get an offer – as lenders will need to run credit checks to see if you meet the eligibility criteria.