If you’re planning to buy a home, one of the most important early steps is securing a mortgage in principle (MIP) – also known as an agreement in principle (AIP). But is it absolutely necessary to have one before making an offer?
Let’s explore what a mortgage in principle is, why estate agents and sellers often expect you to have one, and how it can improve your chances of securing your dream property – especially in competitive markets like Grimsby.
What is a mortgage in principle?
A mortgage in principle is a statement from a lender indicating how much they’re willing to lend you, based on a preliminary assessment of your finances. It’s not a guarantee, but it shows sellers and estate agents that you’re a serious, financially capable buyer.
Most MIPs involve a soft credit check and are usually valid for 30 to 90 days.
Do you need a mortgage in principle before making an offer?
Technically, no – you can make an offer on a property without one. But in today’s fast-paced housing market, having a mortgage in principle gives you a competitive edge.
Here’s why:
✅ It proves you’re financially ready
Estate agents and sellers are far more likely to accept an offer from a buyer who can demonstrate they have the means to complete the purchase.
✅ It speeds up the buying process
A MIP shows you’ve already started the mortgage journey, which can reduce delays and help you move forward quickly once your offer is accepted.
✅ It gives you a realistic price range
Knowing what you can borrow avoids disappointment and helps you focus on homes within your budget.
Why estate agents recommend getting a MIP first
In areas like Grimsby, where demand for property remains strong, sellers often receive multiple offers. Local experts, such as estate agents in Grimsby, know that a buyer with a mortgage in principle is more likely to proceed – and less likely to pull out due to financing issues.
At Belvoir, we often advise buyers to get their MIP sorted early. It shows commitment, reduces stress, and keeps everything moving once your offer is accepted.
How to get a mortgage in principle
Getting a MIP is usually straightforward. Most high street banks, building societies, and mortgage brokers offer them online or in-branch. You’ll typically need:
- Proof of income (e.g. payslips or tax returns)
- Information on debts and outgoings
- Details of your deposit
Once approved, you’ll receive a document you can present to estate agents or include with your offer.
Can you still get a mortgage if you make an offer without one?
Yes – but you’ll need to apply for a full mortgage offer once your offer is accepted. This involves a more thorough affordability check, a credit search, and a property valuation.
Without a MIP, the process could take longer, potentially putting your purchase at risk if a seller is looking for speed or certainty.
Conclusion: Is it worth getting a mortgage in principle?
Absolutely. While it’s not legally required, a mortgage in principle is one of the smartest moves you can make when starting your property journey. It boosts your credibility, helps you act quickly, and strengthens your negotiating power – especially in competitive areas.
Thinking of buying or selling in Grimsby?
Whether you’re house hunting or planning to sell your home in Grimsby, working with knowledgeable local professionals makes all the difference.
At Belvoir, we’re proud to be one of the top-rated estate agents in Grimsby, offering honest advice, expert valuations, and end-to-end support for buyers, sellers, landlords and tenants.
