A mortgage in principle gives you an estimate of how much you might be able to borrow for a home. It can help you set a realistic budget and show estate agents you're serious about buying, but it isn't a guaranteed mortgage offer. 

Key takeaways 

• A mortgage in principle (MIP) is an estimate of how much you might be able to borrow. It isn't a guaranteed mortgage offer 

• ClearScore's mortgage in principle is based on the details you give us. There's no credit search, and it isn't tied to a single lender. We use the information from your credit report  

• An agreement in principle (AIP) or decision in principle (DIP) always comes from a specific lender and always includes a credit check 

• Some providers use mortgage in principle, agreement in principle and decision in principle to mean the same thing, so it's worth checking what you're actually getting 

• A mortgage offer comes later, after a full application, detailed checks and a property valuation 

What is a mortgage in principle? 

A mortgage in principle is an early estimate of how much you could borrow, based on things like your income, outgoings and deposit. It helps you work out your budget before you start house hunting. It also gives you something to show estate agents that you've thought about how you'll pay for a home. 

You might also come across the terms agreement in principle or decision in principle. Some lenders also say mortgage promise or lending certificate. Lots of providers use these names interchangeably, but they don't always work the same way. Some involve a credit check and come from a specific lender, while others don't. We explain the differences below. 

What does a mortgage in principle look like? 

It depends on where you get it. Most lenders and brokers give you a certificate or written confirmation, usually as a PDF you can download or receive by email. It will usually show your name, how much you might be able to borrow and the date it was issued. If it comes from a lender, it may also include the lender’s name, a reference number and an expiry date, often between 30 and 90 days. It should also make clear that it isn’t a mortgage offer. 

How ClearScore's mortgage in principle works 

You can get a mortgage in principle with ClearScore. We'll ask you some questions about yourself, your income and employment, your outgoings, your deposit and the home you're hoping to buy. If you're buying with someone else, you can add their details too. We use your answers to estimate how much you might be able to borrow, based on affordability checks from a range of lenders. Here's what you get, and what you don't: 

• No credit check. We don't carry out a soft or hard search on your credit report to give you a mortgage in principle, so it won't affect your credit score 

• Not tied to one lender. It's a general indication of what you could borrow, not a decision from a particular lender 

• No documents needed. You won't need to upload payslips or bank statements 

• A certificate by email. We'll email you a mortgage in principle certificate that you can share with estate agents or house builders 

• Not a mortgage offer. Lenders make their own decisions when you apply, and the amount they offer you could be different 

Your mortgage in principle is only as accurate as the information you give us, so try to be as precise as you can about your income and outgoings.  

Once you’ve answered our questions, you’ll see how much you might be able to borrow in the app. We’ll also email you your mortgage in principle certificate as a PDF, so you have a record to keep. 

Your mortgage in principle isn’t a mortgage offer, and it isn’t approval from a lender. If your circumstances change, you’ll need to get a new MIP. 

Note: Your home may be repossessed if you do not keep up repayments on your mortgage.

ClearScore is a broker, not a lender.  

Mortgage in principle vs agreement or decision in principle 

If you’re currently house hunting and have come across the terms agreement in principle or decision in principle, you may be wondering; What’s the difference between an ‘agreement in principle’ and a ‘mortgage in principle’? It isn’t always clear what each term means, as they’re often used interchangeably. So let’s clear this up.   

What is an agreement in principle, and how is it different? 

An agreement in principle (AIP) is a statement from a specific lender saying how much it might be willing to lend you. Some lenders call it a decision in principle (DIP). You can get one from the lender directly or through a mortgage broker. Some lenders and brokers use “agreement in principle” and “mortgage in principle” to mean the same thing.  

• It comes from one lender. Your ClearScore mortgage in principle isn’t tied to a particular lender. An agreement in principle is that lender’s own view of what it might lend you, based on its criteria. 

• It usually comes later. Most people get an agreement in principle when they’re closer to making an offer, or once they’ve found a property. A mortgage in principle is more useful earlier on, while you’re still working out your budget. 

• It usually involves a credit check. Many lenders use a soft search, which doesn’t affect your credit score, but some use a hard search, which other lenders can see. It’s worth asking which one a lender uses before you go ahead. 

• You may need to provide documents. Some lenders ask for payslips, bank statements or proof of ID, plus more detail about your job and spending. 

• It’s usually more accurate. Because it’s based on more information, an agreement in principle gives a clearer idea of what that lender might lend you. 

Neither one guarantees you’ll get a mortgage. When you make a full application, the lender will check your finances and the property in more detail, and it could offer a different amount or turn you down. 

 Where each step fits in your home-buying journey 

• Mortgage in principle. Early on, while you're working out your budget and starting to look at properties. 

• Agreement or decision in principle. From a specific lender, usually once you're getting closer to making an offer. You can get one from the lender directly or through a broker, and it often includes a credit check. 

• Full mortgage application. Once your offer on a property has been accepted. The lender checks your documents, runs a hard credit search and values the property. 

• Mortgage offer. If the lender approves your application, it makes a formal offer to lend you money for that specific property. 

You don't have to go through every step. Some people go straight to a lender for an agreement in principle. A mortgage in principle is a straightforward way to get a sense of your budget first. 

Why get a mortgage in principle? 

• Set a realistic budget. Knowing roughly what you could borrow helps you focus on properties within reach 

• Show you're a serious buyer. Many estate agents ask buyers to show they've thought about their finances before they arrange viewings or take offers 

• Spot gaps early. If the figure is lower than you hoped, you have time to save a bigger deposit or pay down debts before you apply 

• Be ready to move. When you find the right home, you'll already know roughly where you stand 

Mortgage in principle vs mortgage offer A mortgage in principle and a mortgage offer are very different things. One is an estimate. The other is a formal offer from a lender after a full application. 

How long does a mortgage in principle last? 

Your ClearScore mortgage in principle reflects your circumstances on the day you get it. If your income, debts or deposit change, or you're still searching a few months later, you’ll need to get a new MIP to reflect the change in circumstances. 

A lender's agreement or decision in principle typically lasts between 30 and 90 days. 

Common myths about mortgages in principle 

Myth: "A mortgage in principle means I've been approved for a mortgage" 

A mortgage in principle is only an estimate. When you apply, lenders carry out their own checks on you and the property, and they may offer a different amount or turn down your application. 

Myth: "Mortgage in principle, agreement in principle and decision in principle are always the same thing" 

The names are often used interchangeably, but what's behind them can differ. Before you rely on one, check whether a credit check is involved and whether it comes from a specific lender. 

Myth: "Getting one will hurt my credit score" 

ClearScore's mortgage in principle doesn't involve a credit check. Many lenders use a soft search for an agreement in principle. Other lenders can't see a soft search and it doesn't affect your score. Some lenders use a hard search, though, so ask before you go ahead. 

Myth: "It ties me to a particular lender" 

No. A mortgage in principle doesn't commit you to anything, and you can apply to any lender when you're ready. 

Get your mortgage in principle with ClearScore 

Find out how much you might be able to borrow in a few minutes, with no credit check. We'll email you a certificate you can share with estate agents. You can also check your free credit score and report to see what lenders may look at when you apply. 

Get your mortgage in principle

Your home may be repossessed if you do not keep up repayments on your mortgage. ClearScore is a broker, not a lender. 

Frequently asked questions 

Does a mortgage in principle guarantee I'll get a mortgage? 

No. A mortgage in principle is an estimate of how much you might be able to borrow. When you apply for a mortgage, the lender will run its own checks and may offer a different amount or decline your application. 

Can ClearScore give me a mortgage in principle? 

Yes. You can get one from the Get a mortgage in principle step in the ClearScore app or on our website. It's based on the information you give us, doesn't involve a credit check and isn't tied to a specific lender. We'll email you a certificate you can keep and share. 

Will a ClearScore mortgage in principle affect my credit score? 

No. We don't run a credit check to give you a mortgage in principle, so nothing is added to your credit report. 

What's the difference between a mortgage in principle and an agreement in principle? 

The terms are often used to mean the same thing, but they can work differently. ClearScore's mortgage in principle is a general estimate with no credit check. An agreement in principle usually comes from a specific lender and often includes a soft or hard credit search. 

Do I still need an agreement in principle from a lender? 

Not necessarily. A ClearScore mortgage in principle is designed to help you early in your search. You’re free to choose who you get an AIP from, and when you're ready to apply, the lender will carry out its own checks. 

Do I need a mortgage in principle to view properties? 

There's no legal requirement, but many estate agents prefer buyers who can show they've thought about their finances. It can help, particularly in competitive markets. 

What if my circumstances change after I get one? 

If your income, debts or deposit change, get a new mortgage in principle so the estimate reflects your current situation. 

Important Information

This article provides general information only and does not constitute financial advice. Individual circumstances vary, and you should seek independent advice before making financial decisions. Information is accurate at the time of writing and may change. 

This information is not a substitute for advice from a lawyer, financial adviser or other qualified professional. 

Your home may be repossessed if you do not keep up repayments on your mortgage.

ClearScore is a broker, not a lender.