A “mortgage in principle” (also known as an “agreement in principle” or “decision in principle”) in the UK is a statement from a mortgage lender indicating that they would, in theory, be willing to lend you a certain amount of money for a mortgage. It is not a formal mortgage offer, but it provides an indication of how much you could potentially borrow based on your financial situation. Here’s a bit more detail:

1. Purpose: It gives you an idea of your borrowing capacity and can make you a more attractive buyer to sellers and estate agents, as it shows you are serious and potentially capable of obtaining financing.
2. Process: To get a mortgage in principle, you typically need to provide information about your income, outgoings, and any debts. The lender may conduct a soft credit check, which won’t affect your credit score.
3. Validity: A mortgage in principle usually lasts for about 60 to 90 days, but this can vary by lender.
4. Conditions: It’s important to note that a mortgage in principle is not a guarantee of a mortgage. The final mortgage offer will be subject to more detailed checks, including a full credit check, valuation of the property, and verification of your financial information.
5. Application: You can apply for a mortgage in principle online, over the phone, or in person with most lenders.
6. Benefits: It can speed up the home-buying process as it shows sellers you are serious, and it gives you a clearer budget when house hunting.

In summary, a mortgage in principle is a useful step in the home-buying process in the UK, providing an early indication of your borrowing potential and helping you to act quickly when you find a property you want to purchase.