What is a Mortgage in Principle?

A Mortgage in Principle is a certificate that says, in principle, how much money a lender is happy to loan you to buy a house.

When you’re ready to make an offer on a property, a Mortgage in Principle will show you’re serious and in a position to buy.

Credit where it’s due

To get a Mortgage in Principle (sometimes called an Agreement in Principle), you’ll have to answer some basic questions about yourself and pass a credit check.

The questions and credit check are designed to see if: 1) you can afford to repay the loan and 2) how well you’ve handled debt in the past.

Depending on the lender, you’ll either get a hard or soft credit check. A soft credit check is recorded on your credit history, but if you’re rejected for the loan your credit score won’t be harmed.

If your application is rejected after a hard credit check, your credit score may suffer – particularly if you get a series of these rejections in a short space of time.

Even if you pass both, a Mortgage in Principle is not a mortgage, or even a guarantee that you’ll get one. It’s just an indication of what you could be eligible for based on a basic assessment.

Nevertheless, they’re useful if you’re house-hunting.

A Mortgage in Principle is valid for around 90 days. A lot of things can change in the mortgage market in that time, so if your Mortgage in Principle expires you’ll want to get a fresh one to make sure you’re in the best possible position.

You can get a Mortgage in Principle with help from Mojo Mortgages in just 15 minutes, all from your laptop or phone and all for free. Use the online mortgage broker Mojo Mortgages to get yours.

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