How long does a Mortgage in Principle last?

Key Takeaways

• Most Mortgages in Principle (MIP) last between 3 and 6 months.
• An MIP is an estimate of borrowing power, not a legal guarantee or a final mortgage offer.
• You can usually extend an MIP if your house search takes longer than expected, though your finances may be re-checked.
• Be cautious of multiple applications; some lenders perform hard credit checks, which can impact your credit score.

What is a Mortgage in Principle?

A Mortgage in Principle is a formal document from a lender or mortgage broker. It shows how much you could potentially borrow for a mortgage, based on your financial information.

How long does a Mortgage in Principle last?

There isn’t a specific time limit for a Mortgage in Principle, but most lenders include a deadline between 3-6 months in the future. The exact length of time you’ll get will depend on the lender, their criteria, and the information you provide them.

Learn more: How to get a Mortgage in Principle

Can a bank pull out of a Mortgage in Principle?

Yes, it’s possible for a bank to pull out of a Mortgage in Principle. Although a Mortgage in Principle is a valuable document to have as it shows you how much you can afford to borrow, it’s not legally binding.

A bank may withdraw an MIP for several reasons:

• Change in circumstances: Changes to your job, income, or debt levels.
• New information: The lender discovers undisclosed financial details during deeper checks.
• Criteria updates: The lender changes their internal affordability rules or interest rate stress tests.

Learn more: How long does a mortgage offer last?

Can you be declined after a Mortgage in Principle?

Yes, it’s possible to be declined after a Mortgage in Principle. While this doesn't happen frequently, here are some of the most common reasons why a bank might decline your mortgage application after they’ve already given you a Mortgage in Principle:

• You’ve changed jobs, or your income has changed
• You’ve taken out a new line of credit
• You’ve missed payments on existing or previous debts
• You’re financially connected to someone with adverse credit

If you're declined for a mortgage, it's important to understand your options. A declined application doesn't close the door on homeownership. Many applicants successfully secure mortgages with different lenders after addressing specific issues. There’s a good chance you’ll be able to get a mortgage from a different lender, especially if you speak to a mortgage broker instead of approaching lenders directly. 

To learn more, take a look at our guide on what to do if your mortgage application is declined.

Can a Mortgage in Principle be extended?

Yes, it’s usually possible to extend your Mortgage in Principle. This is particularly useful if your Mortgage in Principle is nearing expiry and you haven't yet found the right property.

If you’ve already got an Agreement in Principle (this is a more thorough document created following a credit check and more detailed exploration of your finances), this might also need extending. You might need to extend an Agreement in Principle if:

• Your completion date has been pushed back due to delays in the property chain
• You’re purchasing a new build, and it won’t be ready before your mortgage promise expires

Extending a Mortgage in Principle or Agreement in Principle might seem complicated, but most lenders are understanding, especially if you have a good reason for needing an extension.

If you’re thinking of extending your Mortgage in Principle or Agreement in Principle, it can be a good idea to speak to a mortgage broker first. New mortgages, interest rates and deals enter the market every day, meaning the offer laid out in your original document might not be right for you today.

Learn more: What are current interest rates?

How many times can you do a Mortgage in Principle?

There’s technically no limit to the number of Mortgage in Principles you can have. You don’t have to stick with the first one you’re given. Instead, you could have several at the same time or take out one after the other. However, find out whether a credit check will be carried out before you request a new Mortgage in Principle.

Tembo offers a free, online Mortgage in Principle without the need for a credit check. Elsewhere, lenders might carry out a credit search, which could leave a footprint on your credit file which can be seen by other lenders.

Homebuyers can obtain a Mortgage in Principle through Tembo's online platform.

If you request several Mortgage in Principle documents in a short space of time and several footprints are added to your credit report, lenders may see this as a red flag and a sign you may struggle to pay your mortgage in future. This could lead to a declined application.