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How to get a mortgage in principle (agreement in principle)

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In short. Check your credit file, gather income and deposit details, then apply online or through a broker for an agreement in principle — a conditional indication of how much a lender may offer, usually valid for 60 to 90 days.

A mortgage in principle (also called an agreement or decision in principle) is a lender's preliminary assessment of how much they might lend you. It is not a guarantee of a mortgage offer, but estate agents and sellers often expect one before accepting an offer. Read our explainer on what it means and what it does not (/mortgages/mortgage-in-principle-explained/) before you apply.

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·Estimated time: 30 min

The steps

  1. 01

    Check your credit report before applying

    Review your file with at least two of the three UK credit reference agencies. Correct errors, ensure you are on the electoral roll, and avoid applying for other credit in the weeks before your mortgage in principle. Lenders use your credit history to assess risk.

    Official link →

  2. 02

    Gather your financial details

    You need your annual income (salary, bonuses, self-employed accounts if applicable), existing debt commitments, the deposit amount and source, and basic personal details. Self-employed applicants typically need two to three years of accounts or SA302 tax calculations.

  3. 03

    Work out your rough borrowing range

    Most lenders cap lending at around 4 to 4.5 times your annual income, minus existing commitments. Use the lender's online calculator as a guide, but remember affordability rules also stress-test your payments at higher interest rates.

    Official link →

  4. 04

    Choose a lender or mortgage broker

    Apply directly with a bank or building society, or use an FCA-regulated broker who compares multiple lenders. Brokers can access deals not available on the high street and help if your situation is non-standard — self-employment, contract work, or adverse credit.

  5. 05

    Complete the agreement in principle application

    Submit the online form with accurate income and expenditure figures. Many lenders run a soft credit search at this stage, which does not appear to other lenders. Confirm which search type will be used before submitting — a hard search leaves a visible footprint.

  6. 06

    Receive and save your decision

    If approved, you receive a certificate or reference number showing the indicative loan amount and expiry date (often 60 to 90 days). Save a PDF copy for estate agents. If declined, ask why before applying elsewhere — multiple hard searches in quick succession can harm your file.

  7. 07

    Do not treat it as a final mortgage offer

    When you find a property, you still need a full mortgage application with property valuation, detailed affordability checks, and verified documents. The in-principle amount can change if your circumstances shift or the property fails valuation.

Common pitfalls

  • Submitting multiple in-principle applications with hard credit searches in the same week can reduce your score — ask each lender whether they use a soft search first
  • Overstating income or understating debts to get a higher figure backfires at full application when payslips and bank statements are verified
  • Letting your agreement expire before making an offer means repeating the process — note the expiry date and renew if your house hunt takes longer

FAQ

Is a mortgage in principle legally binding?
No. It is an indication only. Neither you nor the lender is committed until a formal mortgage offer is issued after full underwriting and valuation.
Does an agreement in principle guarantee I will get a mortgage?
No. The full application involves deeper checks — employment verification, spending analysis, and a survey. Properties below the asking price at valuation can also reduce the loan amount.
Can I get an agreement in principle with bad credit?
Some specialist lenders accept adverse credit, but mainstream banks may decline. A broker can identify lenders whose criteria fit your file without unnecessary hard searches.
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