Mortgage In Principle: A Complete Guide for First Time Buyers

How to Get a Mortgage in Principle (AIP):

If you’re starting your home‑buying journey, one of the first steps you’ll hear about is getting a Mortgage in Principle (MIP) also known as an Agreement in Principle (AIP) or Decision in Principle (DIP). This simple document can make your property search smoother, strengthen your offers, and give you a realistic idea of what you can borrow.

In this guide, we’ll break down what a mortgage in principle is, how to get one, and what lenders look for, using clear explanations to help you feel confident and prepared.

What Is a Mortgage in Principle?

A Mortgage in Principle is a written estimate from a lender showing how much they’re willing to lend you based on your basic financial information. It’s not a full mortgage offer, but it’s a strong indicator of your borrowing power.

Key benefits of an AIP:

• Shows estate agents you’re a serious buyer

• Helps you understand your budget

• Speeds up the offer process

• Helps you compare mortgage options early

Why Getting an AIP Matters

In today’s competitive market, sellers and estate agents often prefer buyers who already have an Agreement in Principle. It proves you’ve taken the first step and that a lender has assessed your affordability.

For first‑time buyers, an AIP can remove a lot of uncertainty and give you a clear starting point.

What You Need to Get a Mortgage in Principle

Most lenders will ask for a few key details:

• Personal information (name, address history, date of birth)

• Income details (salary, bonuses, self‑employed income)

• Monthly outgoings (credit cards, loans, childcare, car finance)

• Deposit amount

• Credit commitments

At this stage, you usually don’t need to upload documents, that comes later during the full mortgage application.

Does a Mortgage in Principle Affect Your Credit Score?

Most lenders use a soft credit check, which does not affect your credit score. However, a few may use a hard check, so it’s always worth confirming before you apply.

Multiple hard checks in a short period can make lenders cautious, so working with a mortgage adviser helps you avoid unnecessary searches.

How to Get a Mortgage in Principle: Step‑by‑Step

1. Check your affordability

Before applying, it’s helpful to use a mortgage calculator to estimate how much you could borrow and what your monthly payments might look like.

2. Speak to a mortgage adviser

A broker can compare lenders, explain eligibility criteria, and help you choose the right lender for your situation — especially if you’re a first‑time buyer or have complex income.

3. Provide your basic details

Your adviser or lender will ask for:

• Income

• Outgoings

• Address history

• Deposit amount

4. Credit check

The lender will run a soft or hard credit check to assess your financial history.

5. Receive your AIP

If approved, you’ll receive a Mortgage in Principle certificate you can show to estate agents when viewing properties or making offers.

How Long Does a Mortgage in Principle Last?

Most AIPs last 60–90 days, depending on the lender. If it expires, it’s usually quick to refresh it especially if your circumstances haven’t changed.

Can You Get More Than One AIP?

Yes, you can. However, you should avoid multiple hard credit checks. A mortgage adviser can help you choose the right lender from the start.

Common Reasons an AIP Might Be Declined

• Low credit score

• High debt‑to‑income ratio

• Inconsistent income

• Recent missed payments

• Errors on your credit file

If this happens, don’t panic an adviser can often find a lender with different criteria.

Do You Need an AIP to View a House?

Not always, but many estate agents prefer it. Having one ready can help you secure viewings faster and make stronger offers.

Get Your Mortgage in Principle With Well Financial

At Well Financial, we help first‑time buyers and home movers get their Agreement in Principle quickly and stress‑free. We guide you through the process, explain your options clearly, and support you right through to getting your keys.

Whether you’re just starting out or ready to make an offer, we’re here to help you feel confident and informed. Book Online | Well Financial

Thanks for reading, Sean.