What Is a Mortgage in Principle?
A mortgage in principle—also known as an agreement in principle, decision in principle, or mortgage promise—is an early indication from a lender that they may be willing to offer you a mortgage, along with an estimate of how much you might be able to borrow.
How Does It Work?
This is a quick, informal check done before starting a full mortgage application. It helps both you and the lender understand whether you’re a good fit for a mortgage and what borrowing amount could be on the table.
It’s non-binding and doesn’t affect your credit score, as lenders use a soft credit check during this process.
Why Get a Mortgage in Principle?
A mortgage in principle shows estate agents and sellers that you’re a serious buyer. It can:
- Help you stand out in a competitive market
- Speed up the buying process
- Give you a clear budget when house hunting
While it’s not required to make an offer on a home, it’s highly recommended.
How Reliable Is It?
A mortgage in principle isn’t a guarantee, but it’s a strong sign that your full application has a good chance of being approved—assuming your circumstances don’t change.
It gives you a rough borrowing figure and monthly repayment estimate so you can plan accordingly.
What Information Do You Need to Provide?
To get a mortgage in principle, lenders will ask for:
- Your name, date of birth, current and previous addresses (last 3 years)
- Details about your income—salary, bonuses, pensions, investments
- Monthly expenses and existing financial commitments
- Basic credit information (via soft check)
What Happens Next?
Once you have your mortgage in principle certificate, you’ll know how much you can borrow—and can begin your property search with confidence.
Keep in mind: this isn’t a formal mortgage offer. You’ll still need to go through the full application process once you’ve found the right property.
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Art of Mortgage is a trading style of Art of Mortgage co ltd. who is an Appointed Representative of Ingard Financial Limited which is authorised and regulated by the Financial Conduct Authority 450731. The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.