Buying a home is one of the most significant financial decisions you’ll make, and if you’re navigating the Scottish property market, there are some key differences to be aware of – especially when it comes to making an offer.
One of the most common questions from buyers is; Do I need a mortgage offer before I can offer on a property in Scotland?
The short answer is no, but you do need something called a Mortgage Agreement in Principle (AIP) – and timing is everything.
Understanding the Scottish property system
Unlike the rest of the UK, the process of buying a property in Scotland follows a slightly different route. Offers are made formally and legally through a solicitor, and once an offer is accepted, it can become legally binding much sooner than buyers in England or Wales might expect. That’s why financial preparedness is key.
What is an Agreement in Principle (AIP)?
An Agreement in Principle (AIP)—also called a Decision in Principle—is a statement from a mortgage lender saying that, based on the information you’ve provided, they would be willing to lend you a certain amount, subject to full checks and a valuation.
It’s not a guarantee, but it’s often a necessary step before a solicitor will submit a formal offer on your behalf. It demonstrates to sellers (and their agents) that you’re a serious buyer with financing lined up.
Why a full mortgage offer isn’t required upfront
A formal mortgage offer only comes after a full application, which includes a property-specific valuation and underwriting checks. But to apply, the lender needs to know which property you’re buying.
Since you can’t get a full mortgage offer without a property—and you can’t buy a property without an accepted offer—you end up in a bit of a chicken-and-egg situation. This is why lenders and solicitors in Scotland work with AIPs at the offer stage.
What happens after your offer is accepted?
Once your offer is accepted, you’ll move quickly to apply for your full mortgage offer. This includes:
- Ensuring your lender is happy with the home report
- Detailed affordability checks
- Submission of supporting documents (e.g. payslips, bank statements)
Your solicitor will then begin the missives process, which is the Scottish system of exchanging contracts. This is the legally binding part, and your mortgage should be fully approved before missives are concluded.
Key tips for buyers
- Get an AIP before you even start viewing: Many estate agents won’t take you seriously without one.
- Have your deposit ready: You’ll usually need to show proof of funds, particularly if you’re offering over the Home Report value.
- Work with a solicitor early: You’ll need a solicitor to submit your offer, so it’s best to have one lined up before you fall in love with a property.
- Move quickly post-offer: Once your offer is accepted, you’ll need to apply for your full mortgage straight away.
Final thoughts
So, while you don’t need a full mortgage offer before making an offer in Scotland, you do need to be financially prepared. An Agreement in Principle is essential, and having a good solicitor and mortgage advisor lined up early will make the process much smoother.
The Scottish system moves fast—so having your paperwork, funds, and team in place gives you the best chance of securing your dream home with confidence.
Thinking of buying in Scotland? If you’d like help understanding your mortgage options or looking for advice on the market, myself and my team would be delighted to assist you. Find out more here.