Get your mortgage in principle

A Mojo mortgage in principle lasts for 90 days. However, if you choose to get a MIP from a lender, some only last for 30 days. If your circumstances change during that period of time, you’ll likely need to re-apply. 

You can get a MIP as many times as you like - just make sure your lender or broker uses a soft credit check so it limits any impact on your credit report. Presuming your circumstances haven’t changed and the lender’s policies stay the same, it shouldn’t be a problem for you to get another MIP if your first one expires.

Yes, you can theoretically have as many as you like. If you’ve been approved, but feel that another lender might offer you more, there’s no harm in applying with them - so long as they only use soft credit checks. If you’re concerned, ask whoever is completing the application for you. At Mojo Mortgages, we always use soft search credit checks at MIP stage.

Our brokers are normally able to get your expert-verified MIP sorted and sent over within 24 hours of receiving the information they need.

Yes, it can, although this doesn’t happen often. It’s usually when you’re either unaware of something on your credit report or unable to prove your income to the lender’s satisfaction.

There could also be issues if any of the following happens after you get your mortgage in principle, but before going to full application stage:

• You changed jobs 

• Your income goes down, or outgoings go up

• You take out additional credit

• You miss payments on current credit commitments

Finally, it’s possible that your chosen property is unacceptable to the lender. For example, following the property valuation, they might not think what it’s worth you’re intending to pay for it. 

Having a helping hand from knowledgeable and experienced mortgage experts can be invaluable in getting past these types of hiccups in your home ownership journey. For example, if Mojo is your broker, we’ll do everything we can to get you the full story about your rejection.

A mortgage in principle (MIP) and an agreement in principle (AIP) are very similar, and the terms are often used interchangeably. Ultimately, they both represent the exciting first stage of getting a mortgage. 

With both a MIP and an AIP, a soft credit check is usually used to assess your eligibility and affordability to give you an indication of what size of mortgage you might be able to get.

There is a key difference between a lender AIP and a MIP prepared by Mojo Mortgages, though. A lender will assess your information against their own specific criteria, before deciding how much (again, in principle) they may be willing to lend you should you go ahead with a full application. Whereas here at Mojo, a mortgage in principle is prepared by a qualified broker to give you an idea of your borrowing power across a range of lenders. This allows us to provide you with a lender-neutral certificate that details the maximum amount you may be able to borrow in principle.

Applying for a MIP from your mortgage broker takes a similar amount of time as getting an AIP from one lender as the process is largely the same. However, as a broker compares multiple lenders at the same time, they can provide you with an MIP much faster than if you were to apply directly with each lender individually. 

Mojo mortgage brokers compare 70+ lenders and hundreds of mortgage deals to provide expert guidance on which lenders are most likely to approve your application based on your current circumstances, and which lender is most likely to offer you the money you need. This saves you time manually searching lenders to find the best option for you.

No it’s not. A mortgage agreement in principle estimates what you might be able to borrow in principle (hence the name), based on basic financial checks and assuming you meet the lender’s criteria. 

A mortgage offer is a formal agreement confirming the amount a lender is willing to lend you. This is only issued once you’ve submitted a full mortgage application and the lender has carried out detailed checks to assess your suitability.

It’s usually free to get a mortgage agreement in principle. Any fees and charges generally only apply after you’ve received an official mortgage offer.

Usually not. Lenders and brokers typically use a soft credit search when completing a mortgage in principle application. This allows the lender to look at your credit history, but doesn't leave a mark on your file.

Most lenders will only carry out a full credit search when you go through to the full application stage, which will leave a mark on your credit record. This isn’t a negative mark, however, and might only impact you if you’re declined and want to apply again with another lender.

It is possible to get a mortgage in principle with bad credit, but it may make things trickier. 

A mortgage in principle basically tells you whether a lender might, in principle, accept a future mortgage application from you and how much they may be willing to lend. They’ll assess your financial circumstances and your credit history as part of this process, though they’ll usually just perform a soft credit check which won’t impact your credit score. 

If you’re concerned that past credit issues may hold you back from getting a mortgage, you may find it helpful to speak to a specialist broker. They’ll be best placed to recommend lenders who are most likely to offer you a mortgage if you have poor credit history.

A MIP doesn’t guarantee that you’ll get a mortgage, but it can give you a realistic idea of what you can afford to borrow. This can save you a lot of wasted effort and heartache when you’re looking for a home, as you can immediately rule out those you won’t be able to fund.

If you use an online mortgage broker, like ourselves, we’ll be able to assess your circumstances and make sure you apply for a mortgage in principle that’s most likely to be successful when you go to the full application stage. So long as the information you provide is accurate and your circumstances don’t change in the meantime, a MIP should be your first step towards getting a full mortgage.

If it’s apparent from early information that you wouldn’t qualify for a mortgage, a lender is unlikely to give you an agreement in principle. This means that those with certain circumstances may struggle to get one. For example: 

• You have a poor credit history

• You have substantial outstanding debt - which may be described as a high DTI (debt-to-income) ratio

• You’re not on the electoral roll

• Your income is not considered reliable enough, either due to being mostly benefit-related income, or if you’re on a less stable work contract, such as a zero hour contractor

No, you don’t need a mortgage in principle to start looking for properties. But having one can make the process much smoother. That’s because a MIP gives you an idea of how much you can borrow, so you can set a realistic budget for your property search. 

It also puts you in a better position when making appointments to view properties. Some sellers are hesitant to show properties to buyers without a MIP, so having one can prove you’re a serious buyer.

Yes, it’s possible, although in some parts of the UK estate agents won’t allow you to view the property or make an offer on it without one.

Having a MIP to hand can also increase the gravitas of your offer. Many sellers will feel more confident if they know that your offer is a serious one if you’ve gone to the trouble of getting an MIP from a lender and should be able to provide the funds to buy their property.