Mortgage in principle
Apply for a Mortgage in Principle with Better.co.uk to take your first step onto the property ladder.
What is a mortgage in principle (MIP)?
A Mortgage in Principle (MIP), also known as an Agreement in Principle or Decision in Principle, is a document from a mortgage lender or broker indicating how much they will likely lend to you for a mortgage.
Before you begin house hunting, it’s essential to get a Mortgage in Principle because, combined with your deposit, it will set your budget for purchasing your new home.
When deciding how much to offer for a new home, remember to budget for additional costs associated with buying a house. It's crucial to consider these expenses in your financial plan.
Using your mortgage Decision in Principle as a guide, it's not wise to exhaust your budget entirely when making an offer. Keep in mind that the actual amount a lender may approve could differ from your Decision in Principle during the formal application process once the lender has looked into your finances more closely.
How do I get a Mortgage in Principle?
You can get a Mortgage in Principle directly from a lender or by using a mortgage broker like us.
Each lender has unique eligibility criteria, and the borrowing amount can vary between providers. Approaching a specific lender will give you an idea of their potential lending amount, but exploring other lenders with different criteria might lead to better offers.
When you apply for a Mortgage in Principle with Better.co.uk, we assess and compare borrowing options from a wide range of lenders, providing a more precise figure and improving your chances of securing a Mortgage in Principle.
To apply for a Mortgage in Principle with Better.co.uk, you’ll need to:
Live in the UK
Have the right to work and live in the UK
Be aged 18 or over
What information do you need for a Mortgage in Principle?
To determine the amount you could borrow, we'll ask for the following details:
Your current and most recent addresses
Your employment status
Your monthly expenses, including any existing credit commitments
Don’t worry if you don’t have all this information to hand; you can save your profile and come back to it later.
When you apply for a Mortgage in Principle, we'll perform a soft credit check to determine how likely different lenders are willing to accept a mortgage application from you and if there’s anything in your credit history that may impact how much you could borrow.
Once you’ve got a mortgage Agreement in Principle, you can speak to one of our expert mortgage brokers about the next steps and how you can improve your chances of getting a good mortgage deal.
Mortgage in Principle FAQs
What people are saying about Better.co.uk...
Get a mortgage with Better.co.uk today
Important info & marketing claims
You may have to pay an early repayment charge to your existing lender if you remortgage. Your savings will depend on personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
*The savings figure of £506 is based on Better.co.uk remortgage customers in December 2023. Read more on our marketing claims page.
We can't always guarantee we will be able to help you with your mortgage application depending on your credit history and circumstances.
Average mortgage decision and approval times are based on Better.co.uk's historic data for lenders we submit applications to.
Tracker rates are identified after comparing over 12,000 mortgage products from over 100 mortgage lenders.
As of January 2023, Better.co.uk has access to over 100 lenders. This number is subject to change.
For buy-to-let landlords, there's no guarantee that it will be possible to arrange continuous letting of a property, nor that rental income will be sufficient to meet the cost of the mortgage.