Mortgage in principle

Before you start viewing homes! By having an idea of what you can borrow, you know what price range to aim for during your search.

Don’t worry if you’re ready and raring to go with your property search - it shouldn’t take long to get a MIP. You can usually get one within an hour or two or a few days, at most, depending on the type of MIP you get and who you get it from.

A mortgage in principle shouldn’t affect your credit score, provided the broker or lender you choose uses a soft credit check to verify your information.

It’s always worth confirming before applying for a MIP to ensure the lender or broker will not perform a hard credit check, though, as these are visible to other lenders and may impact your score.

It depends on who you get your decision in principle from, but it should typically last for up to 90 days.

If house hunting takes longer than expected and your MIP expires, you just need to reapply.

A mortgage in principle is not a final mortgage offer. You could be turned down at the time of application if you don’t meet your lender’s borrowing criteria. This is usually down to inconsistent or incorrect information, an issue with the property you’ve chosen or a change in your personal circumstances. For example:

• You no longer have a steady income
• You've made too many credit applications
• You've regularly missed your bill payments
• You've recently spent large amounts of money on items you can't afford
• You're unable to prove some of the claims you've made, such as length of self-employment accounts

You can get as many MIPs as you like (providing the lenders you apply with only use a soft credit check, so there’s no footprint left on your credit report).

It can be tempting to get more than one MIP if the amount offered by your original lender is less than you expected.

Alternatively, to save yourself the effort and hassle of applying for MIPs with multiple different lenders, you could get a MIP from a mortgage broker like Mojo. A broker will compare your options across a wide range of lenders, providing you with a MIP that details your maximum borrowing potential.