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What is a Mortgage in Principle?

Posted 13/02/2023 by Embrace Financial Services

Buying a house can be a daunting task, especially for first-time buyers. One important step in the process of buying a home is obtaining a mortgage in principle. But what is a mortgage in principle?

A mortgage in principle is an agreement between you and your lender that states the maximum loan amount they are willing to lend you for your new home. It provides assurance that, if you find the right property, the lender should lend you the money. Let’s explore what exactly a mortgage in principle is and why it’s so important when buying a house.

What Does Mortgage in Principle Mean?

A mortgage in principle (or MIP) is not an actual loan but rather an agreement between you and your lender that states how much money they are willing to lend you for your house purchase. This amount will take into account factors such as your income, credit score, and other debts that you may have outstanding. The overall purpose of this agreement is to give lenders confidence that, should you find the right property and apply for the full loan amount, it should be approved without any issues. It’s important to note that it is an in principle offer, this means that the leader has the right to withdraw the offer or even change it if your circumstances change in the meantime.

When do I need an Mortgage in Principle?

A mortgage in principle is required when making an offer on a property; most sellers want the reassurance that the buyer has the funds before they make an offer on their property. This means if you have found the perfect home but don’t have an MIP, then it could be difficult to make an offer on the house or even get access to viewings of certain homes until you can provide proof of a mortgage in principle from a lender. Having this document ready can help speed up the process of finding and buying your new home significantly!

How long does it take to get an Mortgage in Principle? 

At Embrace Financial Services, we use the latest technology that checks you against multiple lenders in just 15 minutes to find out which lenders will lend you what you need. This saves you the hassle of going to multiple different lenders – we do it for you.

Obtaining a mortgage in principle is essential when purchasing a home as it provides both lenders and sellers with peace of mind that buyers are serious about buying their property and indeed have been pre-approved by their chosen lender. You can typically obtain a MIP in your appointment with an Embrace Financial Adviser so you can start house hunting with full confidence. If you need assistance securing your MIP then book an appointment today - our team of qualified advisers would be more than happy to help!

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Stamp Duty Calculator


You pay from 23rd September 2022

This calculator provides a guide to the amount of residential stamp duty you may pay and does not guarantee this will be the actual cost. This calculation is based on the Stamp Duty Land Tax Rates for residential properties purchased from 23rd September 2022. 

For more information on Stamp Duty Land Tax, click here.


Your initial mortgage appointment is without obligation. We normally charge a fee for our services; however, it is payable only on the submission of your mortgage application. The fee will depend on your circumstances but our standard fee is £549. Complex cases usually attract a higher fee. We will discuss and agree the fee with you prior to submitting any mortgage application.

Please be aware that the information provided within these archives has been pre-published, as of the date published on each article. The information contained within, including references to taxation, legislation, regulation, or any other issues or concerns may no longer apply.

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