What is a Mortgage in Principle (MIP)?

A Mortgage in Principle (MIP), also known as an Agreement in Principle (AIP), a Decision in Principle (DIP), or a Mortgage Promise, is a statement from a lender indicating how much they might lend you to buy a property. It’s the first step in the home-buying process, giving you a clearer picture of what you can afford.

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The Reliability of a Mortgage in Principle

While an MIP is not a guaranteed mortgage offer, it is a valuable tool in your property search. It shows sellers that you are a serious buyer and gives you an idea of your budget. Here’s what you need to know:

• It provides an estimate of how much you could borrow based on your financial situation.
• A mortgage broker can assess your circumstances to ensure you apply for an MIP that aligns with your goals.

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Credit Checks and MIPs

Soft Credit Check: Most lenders perform a soft check, which will not impact your credit score. Hard Credit Check: If a hard check is required, lenders will inform you beforehand.

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Validity Period of an MIP

Typically lasts for 90 days, but this can vary among lenders. If your circumstances change, you may need to reapply for an MIP.

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Cost of a Mortgage in Principle

Our service does not charge for obtaining an MIP.

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Timing for Obtaining an MIP

Before House Hunting it is advisable to secure an MIP before starting your property search, as it is often required by estate agents before viewing properties, especially in Scotland.

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Guarantee of Mortgage Approval

No Guarantee: An MIP does not guarantee mortgage approval, as lenders have varying criteria and risk assessments.

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How We Can Help

Our team of experts can guide you through the process, helping you find lenders likely to offer you a mortgage that suits your needs. Contact us to start your journey toward homeownership. For more information or to begin your application for a Mortgage in Principle, contact our team today. We are here to make your path to buying a home as smooth as possible.