For most people, a home in the UK is out of reach without a mortgage. It's more than just a "loan for a house" — it's a long-term commitment, usually over 20 to 35 years. The better you understand the process, the quicker you'll get approved, the more mistakes you'll avoid and, in all likelihood, the more interest you'll save over the full term. One of the first steps is a Mortgage in Principle (MIP), a preliminary lending statement. This guide explains clearly how it all works, from MIP to keys.
The Bank of England base rate in June 2026 is 3.75%. The actual rate on your mortgage depends on your deposit, the term and the lender — for example, deals around 4.5–5.5% are common, but that's only an illustration. Rates change constantly, so always confirm the exact figure at the time you apply.
What is a Mortgage in Principle?
A Mortgage in Principle (also called an Agreement in Principle or Decision in Principle) is a document stating how much a lender can provisionally lend you, based on your income, outgoings and credit history. It isn't a guarantee that you'll be given the loan — it's a guide.
Why it matters:
- It helps you get a realistic sense of the kind of home you can look for.
- It shows sellers and agents that you're a serious buyer.
- It strengthens your hand in negotiations — with a MIP, your offer looks more credible.
- It's usually issued free of charge and lasts around 30 to 90 days (you can renew it once it expires).
You can hold more than one MIP, but avoid too many "hard check" enquiries in a short space of time — more on credit checks below.
Soft check or hard check?
Before you apply for a MIP, find out which kind of credit check the lender will run:
- Soft check — leaves no footprint on your credit history; other lenders can't see it.
- Hard check — can dip your credit score slightly for a short while, and several such enquiries in a row look unfavourable.
Types of mortgage in the UK
Before you borrow, it's worth knowing the main options. Each has its own advantages and risks.
| Type | How it works | Who it suits |
|---|---|---|
| Fixed Rate | The interest stays the same for an agreed period — 2, 3, 5 or even 10 years. You know your exact monthly payment. | Anyone who wants stability and a clear budget, especially when rates are rising. |
| Variable / Tracker | The interest moves with the Bank of England base rate. When rates fall you save; when they rise you pay more. | Those who can take on some risk and expect rates to fall. |
| Buy-to-Let | Designed for buying a property to rent out. It needs a bigger deposit (around 25%) and the interest is usually higher. | Investors, rather than people buying somewhere to live. |
"Help to Buy" has now closed. Other options are still available: Shared Ownership (you buy a share of a home), Lifetime ISA (saving with a government bonus) and First Homes (a discount for first-time buyers). Eligibility depends on your situation and the region.
How to get ready for a mortgage
Lenders check not only your income but your overall financial discipline. Most commonly they assess:
- Income — your employment contract, payslips, and tax returns if you're self-employed.
- Credit history — whether you pay your bills on time and what debts you carry.
- Commitments — car finance, credit cards and other loans.
- Stability — how long you've been in your job and your address history.
Useful things to do in advance: pay off smaller debts, make sure every bill is paid on time, avoid taking on new credit just before you apply, and where possible stay in a steady job for at least six months before you approach a lender.
The process step by step
| Step | What it means |
|---|---|
| 1. Mortgage in Principle | Shows how much you can provisionally borrow and strengthens your negotiating position. |
| 2. Offer accepted | Once you've found the home you want and the seller has agreed, the legal and financial processes begin. |
| 3. Full application | The bank or broker asks for payslips / tax returns, bank statements, your passport and proof of address. |
| 4. Valuation | The lender sends a surveyor to check the property's price matches its market value. If the valuation comes in lower, the loan may be reduced. |
| 5. Mortgage Offer | The official document confirming you'll get the loan. It usually lasts 3 to 6 months. |
How long does it take? Typically around 4 to 6 weeks from MIP to mortgage offer. In more complex cases (self-employment, unusual income) it can take longer. A good broker often speeds the process up.
Broker or bank?
Both routes are open to you, but they differ:
- Broker — a wider choice of lenders, help with the paperwork, and they often find more favourable terms than you would on your own. Many brokers are paid by the lender, so it frequently costs you nothing.
- Bank — convenient if you already have an account there and a clean track record; the process can be simpler.
For first-time buyers and people who have moved to the UK, a broker is usually the better choice. For more on how to choose one, read our guide to the mortgage broker →
A MIP isn't a guarantee — it's a map. It shows how much you can realistically borrow, so you can look for a home you can genuinely afford.
A real-life example
A family in the UK earns £55,000 between them and finds a flat for £250,000 in a London suburb. Their MIP shows they can borrow around £220,000, with £30,000 of their own for the deposit. A broker helps them secure a 5-year fixed mortgage at roughly 5% (an illustrative example — rates change), with a monthly payment of about £1,285. They feel confident, because the payment fits what they can genuinely afford.
Common mistakes
- Asking for too large a loan. More than you can realistically commit to — and the budget starts to crack.
- Not supplying all the documents. A missing statement holds up the whole process.
- Not checking your credit history. Errors on the report can catch you out at the worst possible moment.
- Rushing. Unfavourable terms get signed without comparing offers.
- Forgetting the extra costs. Solicitors, insurance, the valuation and any repairs — all of it needs to sit alongside your deposit.
We help you prepare before you even apply: we explain what you'll need, connect you with trusted mortgage brokers in Lithuanian or English, and coordinate the whole process — from MIP to mortgage offer. We keep an eye on the deadlines so your MIP doesn't expire at the wrong moment, and make sure there are no surprises before exchange.
Quick reference
- Start with a MIP — you'll learn your real budget and become a serious buyer.
- Get your documents together in one place and check your credit history in advance.
- Don't make big financial changes just before you apply.
- Account for all the costs, not just the deposit. How to plan your whole home-buying budget →
You'll find more topics in our guides. Fees and rates change — it's always worth checking the latest before you sign, or having an agent who'll flag it for you.