16 Jul 2026 Company Update
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If you’re house hunting, you’ve probably heard about a Mortgage in Principle (MIP) — sometimes called a Decision in Principle (DIP). It can feel reassuring to have one in your pocket, but it’s important to know what it really means. Important to know: it doesn’t guarantee you’ll get the mortgage.
What is Mortgage in Principle Actually – A Mortgage in Principle is essentially a lender’s preliminary view of how much you might be able to borrow based on the information you’ve provided so far — usually things like your income, outgoings, and credit history.
It’s useful because it:
- Shows sellers and estate agents that you’re serious.
- Gives you a clear idea of your budget before you start viewing properties.
- Can speed up the mortgage application once you find your home.
Why It’s Not a Guarantee – Even with a Mortgage in Principle, the lender will still need to:
- Verify your income and employment.
- Check your full credit report.
- Conduct a full affordability assessment.
- Assess the property you want to buy.
During this full assessment, the lender may adjust the amount they’re willing to lend — sometimes higher, sometimes lower. In rare cases, they might decline the mortgage altogether.
What This Means for You – Think of a Mortgage in Principle as a strong indication, not a promise. It gives you confidence to start house hunting, but it’s not a guarantee that you’ll get the funds.
Being realistic with your budget and staying in close touch with your lender or mortgage broker will help prevent any surprises down the line.
A Mortgage in Principle is a helpful step in the buying process, but it’s only the beginning. Don’t assume it’s the final word — treat it as guidance and let the full application process confirm what you can borrow.
👉 Thinking about your next move? Give mortgage team a call today, they are here to help, whether it’s getting a Mortgage in Principle or answering any questions along the way.
There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £695 on mortgage offer.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lending if you remortgage (Not all Buy-to-Let Mortgages are regulated by The Financial Conduct Authority).
Perry Bishop Financial Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
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