A Mortgage in Principle (MIP) is a conditional statement from a lender indicating how much they are willing to lend, obtained before a formal mortgage application — also called Agreement in Principle (AIP) or Decision in Principle (DIP).
A Mortgage in Principle (MIP), also called an Agreement in Principle or Decision in Principle, is a preliminary indication from a mortgage lender of how much they would be prepared to lend, based on a basic assessment of the applicant's income, outgoings, and credit profile.
Estate agents and sellers in England and Wales routinely ask buyers to show a MIP before accepting an offer. It demonstrates that the buyer has already engaged with a lender and is likely to be able to fund the purchase — making their offer more credible than one with no financial verification.
A MIP is not a guarantee of a mortgage. It is conditional on: a satisfactory valuation of the property; full verification of income and documents at formal application; a satisfactory credit check (some MIPs use a soft search, others a hard search); and the lender's current criteria not having changed.
The MIP application typically asks for income, employment status, monthly outgoings, deposit amount, and credit history. Some lenders perform only a "soft search" that does not affect your credit score; others perform a "hard search" that is recorded on your credit file.
MIPs are usually valid for 60–90 days. If your property search extends beyond this period you may need to renew. Renewal often involves a fresh credit check, so avoid applying for multiple MIPs from different lenders as this can leave multiple hard searches on your credit file.
No. A MIP is a preliminary assessment only. The formal mortgage offer comes only after the lender has verified all documents, conducted a property valuation, and completed full underwriting. Circumstances can change between MIP and formal offer.
Most lenders issue a MIP within 24 hours, and many online lenders provide one within minutes. A broker-submitted MIP may take a day or two but will be from the most appropriate lender for your circumstances.
Not legally. But most estate agents will not submit your offer to the vendor without one, and a vendor is unlikely to accept an offer from an unverified buyer in a competitive market.
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