What Is an Offer in Principle?
If you’re starting to look at properties seriously, you’ll hear the phrase “offer in principle” fairly quickly. Here’s exactly what it means and why it matters.
The short version
An offer in principle (also called a mortgage in principle, agreement in principle, or decision in principle — they all mean the same thing) is a written statement from a lender saying they’d be willing to lend you a certain amount, based on a quick look at your finances. It’s not a mortgage offer. It’s not a guarantee. But it’s a strong signal that you’re a credible buyer.
Why do you need one?
Most sellers and estate agents will ask if you have one before taking your offer seriously. If two buyers offer the same price and one has an OIP and the other doesn’t, the seller will almost always go with the OIP buyer. It reduces the risk that the sale falls through because the buyer can’t actually get a mortgage.
Getting one also helps you. It forces you to think realistically about your budget before you fall in love with a property you can’t actually afford.
How do you get one?
You can get an OIP directly from a lender (bank or building society) or through a mortgage broker. It usually takes about 15–30 minutes and involves a soft credit check — which won’t affect your credit score. You’ll need to provide basic details: your income, employment status, any debts, and the size of deposit you’re planning to put down.
How long does it last?
Most OIPs are valid for 60–90 days. If you haven’t found a property in that time, you can usually renew it. If your circumstances change — new job, new debt, change in income — you may need to reapply.
What it doesn’t mean
An OIP is not a mortgage offer. Once you’ve found a property and had an offer accepted, you’ll still need to go through the full mortgage application, which involves a hard credit check and a valuation of the property. The OIP can still be declined at that stage if something has changed.
It also doesn’t lock you in. You can get an OIP from one lender and end up taking a mortgage from a completely different one.
On Woosh
When you make an offer through Woosh, you’ll be asked to confirm your OIP status. It keeps the process honest — sellers know who the serious buyers are, and you know you’re competing on a level playing field.
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