12 May, 2020
Get your mortgage in principle
We've partnered with Mojo, a leading mortgage broker that can give you a free mortgage in principle.
We haven’t shared any of your personal details, so they’ll ask a few questions of their own.
Ready to get your mortgage in principle? Continue to Mojo.
Or, you can find more info about Mojo here.
What's a mortgage in principle?
Getting a mortgage in principle (MIP) is the first step in the mortgage process. It should give you a good idea of how much you’ll be able to borrow and at what rate.
If you're doing viewings, go with a MIP in your back pocket to show sellers you’re serious.
A MIP is sometimes also known as a DIP (decision in principle) or AIP (agreement in principle).
It isn’t a binding agreement and it doesn't guarantee that the lender will give you a mortgage offer, but you're not tied to it either. It's generally valid for 90 days.
Some brokers, including Mojo, run a ‘soft’ check to confirm your personal information - this doesn't affect your credit score. Others may run a ‘hard’ check - this is a full credit check and leaves a footprint, which other lenders can see.
The process
You can either get a mortgage in principle via a broker, like Mojo, or from the lender directly.
The process starts with a few questions. They'll assess your affordability and estimate how much you'll be able to borrow.
You'll get an official document with this info - that's your mortgage in principle.
How much you can borrow
The amount you can borrow is generally:
- Up to five times your annual income.
- Up to 95% of the property value.
They'll also want to check you'll be able to make the monthly repayments.
You'll need to show that your income covers fixed outgoings such as travel and food, as well as your anticipated bills once you're a homeowner.
What's next?
You can get a free mortgage in principle from Mojo here.
Use this as a guide for viewings and making offers. You'll still need to make a mortgage application for real once you've found your home and had an offer accepted.