When house-hunting and you find a property you love, wouldn’t it be great to know that you can afford it, before putting an offer in?

That’s what a mortgage in principle (MIP) is.

Also known as a ‘decision in principle’ or an ‘agreement in principle’, a MIP is a statement made by a bank to say how much money they are potentially willing to lend you. However, a mortgage in principle is not a mortgage offer and is subject to the rules of the lender.

To issue a mortgage in principle, the lender will require some basic information from you, including your personal details, income and expenditure. They will also run a credit check. Most mortgage in principles can be quickly processed and are free-of-charge, although mortgage arrangement fees may be payable at a later stage.

So, why is it beneficial to have a mortgage in principle?


1. Reassurance

Having a mortgage in principle in place will give you a good indication of the amount you can borrow, allowing you to narrow down your property search to what you can and cannot afford.

It can help put your mind at ease, knowing that a bank is potentially prepared to lend you the money, especially if you have had problems in the past with credit.


2. Help with agents

With a mortgage in principle, you become the ‘more attractive buyer’ to sellers and agents, as you’re able to prove you can afford the property. This is especially useful in competitive areas where things move quickly – giving the agents confidence that if your offer is accepted, you can move ahead with ease. It may even help if you’re wanting to negotiate on the price of the property.

Although you don’t necessarily need a MIP to make an offer on a property, most sellers and agents won’t take you seriously without one. Having one shows that you are serious about purchasing and can sometimes speed up the house-buying process.


If you’re looking to purchase a new home and want some help with getting a mortgage in principle, then do not hesitate to get in touch with KB Mortgage Services.

Call us on 07834 818805 for a free, no-obligation consultation. Fees may be payable at a later stage.

Your home may be repossessed if you do not keep up repayments on your mortgage.


Approval no. Sol8003.