A Mortgage in Principle (MiP) is your proof of purchasing power. It’s a simple letter from a lender that says, based on what they’ve seen, you could borrow up to £X. While it’s not legally binding, it’s taken seriously by estate agents.
You’ll almost certainly need one to make an offer. In competitive markets, some agents may even ask for it before you can book a viewing - this was often the case during the post–Covid housing boom in 2021.
The easiest way is to use a mortgage broker. If a friend recently bought a home, ask who they used. No shame in the text: “Hey, was your mortgage broker any good?” Otherwise, national brokers like London & Country are a solid, fee-free place to start. (View Highlight)
Self-employed?
This is a big one. Lenders will want to see at least two years of official income records (like tax returns or certified accounts) to prove your earnings are stable. If you’ve only been trading for a year - even if you’re making good money - most lenders won’t consider that income.
The hard truth: this is usually a non-negotiable, and it means you may have to pause your home search until you have that two-year history. (View Highlight)
Bonuses or RSUs?
This is where a good broker really earns their fee. One lender might only agree to count 50% of your annual bonus, while a specialist lender might count 100%. A broker’s job is to know which lender will look most favourably on your specific pay structure, potentially adding tens of thousands to your borrowing power. (View Highlight)
Cash buyer?
Lucky you. But you still need proof of funds, usually a recent bank statement. Pro-tip: Consolidate the exact amount needed for the purchase into one account beforehand. Some agents have been known to use a high balance as leverage to push for a bigger offer. Yes, that sucks.
An MiP doesn’t commit you to anything. But without one, you’re just window shopping. You risk wasting weeks viewing homes you can’t actually afford, and you won’t be able to make an offer when it counts. If you’re even semi-serious about buying, get one. (View Highlight)
• A Mortgage in Principle is a non-binding proof of purchasing power; you’ll need it before you can make a serious offer.
• The easiest way to get one is via a mortgage broker, who can also help navigate tricky income situations like self-employment or bonuses.
• Having an MiP is what makes you a credible buyer in the eyes of estate agents, putting you in a position to move quickly and make an offer when you find the right home. (View Highlight)
The 5% Deposit Is a Psy-Op: 10% Is the Real Minimum
Some lenders will offer you a mortgage with a 5% deposit. Don’t be fooled by that. The 5% figure is marketing; the number you actually need is 10%
The number agents and sellers really care about is the 10% exchange deposit. This is the standard because if you pull out after exchanging contracts, the seller legally keeps that money. A 5% deposit doesn’t offer enough security, so many sellers simply won’t accept it. (View Highlight)
An offer with 10% isn’t just stronger; it’s often the minimum to be taken seriously. In a competitive market, a 5% deposit puts you at the back of the queue at best. At worst, you’re not in the queue at all.
For a £300,000 property, that’s £30,000 in real cash that your solicitor needs to see in your bank account. If you’re getting help from family (a “gifted deposit”), get that money transferred well in advance. (View Highlight)
You’ve heard the mantra: “Location, location, location.” It’s the most repeated phrase in UK property. They made a bloody TV show about it that we referenced at the beginning of this article. But in 2025, it’s misleading. Location matters, but it doesn’t explain why two homes on the same street can have wildly different price tags. (View Highlight)
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