You'll need to know your budget when looking for a new home, by getting a mortgage in principle you'll know what lenders might be able to lend you.
Estate agents will want to know you are serious about making an offer on a property so having a mortgage in principle is often required.
With access to 12,000 deals from over 100 lenders, we have a whole-of-market view of the mortgage market, giving us a better chance of finding you the right lender and the best mortgage rates.
Getting a mortgage can seem daunting, but you don't have to go it alone when you get a mortgage with Better.co.uk. We can help you at every step along the way.
Join thousands of homeowners who got a mortgage with Better.co.uk
"Highly recommended and will continue using this service whenever the time comes. I've had the pleasure of dealing with Steven B and Ellie W. There's not one thing I can say was negative. Extreemly informative and made me feel any question is not silly. They've help me understand things I had no idea about and really taken the reins when it came to the stressful time of applying for a mortgage. Outstanding customer support and experience with them and I hope they are still here in 5 years when I need to remortgage. They're an asset to the organisation and exceeded my expectations!"
"Tom Lewis and Amanda Baker have been absolutely amazing throughout our process. They have helped us through every question and query we had as first time buyers. They constantly kept us in the loop of each stage and worked consistently and quickly throughout. We honestly can’t fault the work that they have done. Our experience has been so much less stressful with the two of them involved."
"As first-time buyers, we were really glad to have Better to help us through the whole process. Lily-may landed us a competitive mortgage deal; Susan helped us through the conveyancing options; Kate and Richard got us good insurance options. Kate kept checking in to see how were going and keeping our offers current. We probably would have chosen our own local conveyancer rather than go with the one Better introduced us to, but everything got done efficiently in the end. Overall a great, friendly, responsive team and we'd certainly use them again."
You can get a Mortgage in Principle directly from a lender or by using a mortgage broker like us.
Each lender has unique eligibility criteria, and the borrowing amount can vary between providers. Approaching a specific lender will give you an idea of their potential lending amount, but exploring other lenders with different criteria might lead to better offers.
When you apply for a Mortgage in Principle with Better.co.uk, we assess and compare borrowing options from a wide range of lenders, providing a more precise figure and improving your chances of securing a Mortgage in Principle.
To apply for a Mortgage in Principle with Better.co.uk, you’ll need to:
To determine the amount you could borrow, we'll ask for the following details:
Don’t worry if you don’t have all this information to hand; you can save your profile and come back to it later.
When you apply for a Mortgage in Principle, we'll perform a soft credit check to determine how likely different lenders are willing to accept a mortgage application from you and if there’s anything in your credit history that may impact how much you could borrow.
Once you’ve got a mortgage Agreement in Principle, you can speak to one of our expert mortgage brokers about the next steps and how you can improve your chances of getting a good mortgage deal.
Mortgage in Principle FAQs
Can you make an offer without a Mortgage in Principle?While making an offer on a property without obtaining a Mortgage in Principle is possible, estate agents will often ask if you have one before presenting your offer to the seller.
If you have the funds to buy a property without a mortgage, you won’t need a Mortgage in Principle, provided you can explain where the money is coming from.
However, if you need a mortgage to afford a new home, having a Mortgage in Principle before you make an offer on a property will mean the seller and their estate agent will take the offer more seriously. Most estate agents won’t put an offer to the seller without proof of funds in place.
When buying a property with a mortgage, your Mortgage in Principle and your deposit are used as proof of funds. This demonstrates that providing nothing goes wrong during the application process; you’ll be able to afford the offer you’ve made.
How reliable is a Mortgage in Principle?A Mortgage in Principle, isn’t a guarantee that you’ll be accepted for a mortgage or that you’ll be able to borrow as much as it states.
Lenders will still need to check your earnings, outgoings and credit history once you apply for a mortgage.
The accuracy and reliability of your Mortgage in Principle, can vary based on its source. Those obtained directly from a lender generally indicate their willingness to lend, but it's not a definite commitment, and they may not honour it during the formal application process.
When you get an Agreement in Principle with Better.co.uk, we’ll check your credit history and eligibility with different lenders, giving you a more accurate idea of how much you’ll likely be able to borrow.
Our expert mortgage brokers can work with you throughout the mortgage application process to help you find the right mortgage.
Does a Mortgage in Principle affect my credit score?When you apply for a mortgage with us, we’ll take a look at your credit history using a soft credit check. Soft searches won’t impact your credit score.
Be mindful when applying for your Mortgage in Principle that some lenders or brokers may conduct a hard credit check during the Mortgage in Principle application. Hard credit checks leave a record on your credit report, and multiple checks in a short time can lower your credit score.
If your Mortgage in Principle expires and you’ve applied for it with a lender that conducts hard credit checks, it’s wise not to reapply until you’re sure you need one. Multiple hard credit checks within six months can harm your credit score and reduce your chances of obtaining a mortgage.
What’s the likelihood of securing a mortgage with a Mortgage in Principle (MIP)?A Mortgage in Principle (MIP) doesn’t guarantee the approval of your mortgage application; it only indicates the amount you could potentially borrow.
When you apply for a MIP with Better.co.uk, we’ll assess your eligibility with a wide range of lenders and let you know how much you could potentially borrow.
Our team of experienced mortgage brokers will help you throughout the application process and provide further guidance on improving your credit score and eligibility if required.
What is the difference between a Mortgage in Principle and a mortgage offer?A Mortgage in Principle is a non-legally binding document designed to estimate how much you could borrow based on the information you've supplied, provided you meet the necessary eligibility criteria.
In contrast, a mortgage offer is a legally binding document issued by the lender after a successful mortgage application. It will also outline the terms and conditions of your new mortgage.
Before you receive a mortgage offer, the lender will thoroughly examine your financial history, which will involve a hard credit check. They will also check your affordability and that your property is worth the money you’ve offered.
Do you need proof of deposit for a Mortgage in Principle?You won’t need proof of deposit to apply for a Mortgage in Principle with Better.co.uk, although we’ll ask how much deposit you’ve got to put down to provide you with a figure.
You will need proof of your deposit when you make an offer on a property, so it’s important to ensure you have it ready by the time you make an offer on your chosen house.
How long is a Mortgage in Principle valid for?Most MIPs are valid for between 30 and 90 days. A Mortgage in Principle from Better.co.uk will be valid for 90 days.
If you don’t find a property or make an offer before it expires, you can reapply; there’s no limit to how many times you can apply for a decision in principle with Better.co.uk.
If you’re applying for a Mortgage in Principle with a lender that runs hard credit checks, you’ll want to reduce the number of times you reapply because this could negatively impact your credit score.
