Glossary · UK
What is Mortgage In Principle?
A lender's conditional indication of how much it might lend you, based on a soft credit and affordability check before a full application.
Full Definition
A Mortgage in Principle (MIP), also called an Agreement in Principle (AIP) or Decision in Principle (DIP), is a statement from a lender showing roughly how much it would be willing to lend you. It is based on basic information about your income, outgoings and a credit check, and gives buyers and estate agents confidence that you can realistically afford a property before you make an offer. It is not a binding mortgage offer -- the lender still needs to carry out full underwriting, verify documents and value the property before formally approving the loan. Many lenders run only a soft credit search for an MIP, which does not affect your credit score, though some use a hard search. An MIP typically lasts between 30 and 90 days. Use an affordability and repayment calculator to estimate borrowing and monthly costs, then confirm exact terms with the lender, as actual rates depend on the product and loan-to-value chosen.