What is a mortgage in principle?
What a mortgage in principle is, how long it lasts, whether it affects your credit file, what you need to get one, and when to get it.
Quick answer
A mortgage in principle, also called an agreement or decision in principle, is a lender’s early indication of how much it may lend you, based on your income, your outgoings and a credit check. It is not a guarantee or an offer. Estate agents often ask to see one before they accept an offer, and most last between 30 and 90 days.
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Where it fits
- 1Check how much you can borrow.
- 2Get a mortgage in principle.
- 3View homes and make offers.
- 4Full application and valuation.
- 5Mortgage offer, then completion.
Before you apply
Theo’s borrowing tool shows what lenders’ published criteria point to before any credit check, so you know which lenders to approach for a mortgage in principle. An adviser can arrange it through the app.
What you will usually need
- IDName, date of birth and nationality.
- AddressWhere you have lived, often for three years.
- IncomeSalary, bonus or self employed profit.
- OutgoingsLoans, cards and regular commitments.
Not sure what you can borrow?
Check before any credit search.
Mortgage in principle against a mortgage offer
| Mortgage in principle | Mortgage offer | |
|---|---|---|
| When | Before you find a home | After an accepted offer and full application |
| Based on | What you tell the lender and a credit check | Documents, full checks and a valuation of the home |
| Binding? | No | A formal offer, with conditions |
| How long | Often 30 to 90 days | Usually around six months |
Ready to make offers
A mortgage in principle shows estate agents you are a serious buyer.
What a mortgage in principle is
A mortgage in principle is a statement from a lender that it would probably lend you a certain amount, based on what you have told it and a check of your credit file. You might also see it called an agreement in principle or a decision in principle. It usually takes minutes to get, online or through a mortgage adviser.
It is not a mortgage offer. The lender will check everything again when you make a full application, including your documents and a valuation of the home, and can still decline.
Does it affect your credit score?
It depends on the lender. Many use a soft search, which you can see on your credit file but other lenders cannot, so it does not affect your score. Some use a full, or hard, search, which other lenders can see. A few hard searches close together can make lenders cautious, so ask which type of search will be used before you apply, and avoid applying to lots of lenders at once.
When to get one
Get one before you start making offers. Estate agents often ask to see one before they put an offer forward, and it shows sellers you are ready to move. Because most last between 30 and 90 days, there is little point getting one long before you start looking seriously. If yours expires, you can usually renew it.
What you need
You will usually need your personal details, your address history, often for the last three years, your income, and your regular outgoings, including loans, credit cards and childcare. Self employed applicants may be asked for their profit or income over the last two years. Having these ready makes it quick.
If it is declined
A decline is a sign to pause, not to apply everywhere. Check your credit file for errors, make sure you are on the electoral roll, and see whether a smaller loan or bigger deposit would change the answer. An FCA-authorised mortgage adviser knows which lenders look at different circumstances and can avoid unnecessary searches. Start with how much you can borrow, which needs no credit check at all.
Common questions
What is a mortgage in principle?
How long does a mortgage in principle last?
Does a mortgage in principle affect my credit score?
Do I need a mortgage in principle to make an offer?
Can a lender refuse a mortgage after a mortgage in principle?
Keep exploring
Theo App Ltd is not authorised by the Financial Conduct Authority and does not give mortgage advice. This page is information only and is not a recommendation. General information, not advice. Lenders’ processes vary. Speak to an FCA-authorised mortgage adviser about your own circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.