An Agreement in Principle (AIP), also called a Decision in Principle or mortgage promise, is a conditional indication from a lender of how much they would be willing to lend you. It is based on basic affordability checks and typically lasts 60–90 days.
What Is an Agreement in Principle?
An Agreement in Principle (also called a Decision in Principle or Mortgage in Principle) is a written statement from a lender saying: "Based on the information you've provided, we'd be willing to lend you up to £X."
It's based on basic information about your income, outgoings, and credit history — not a full application. Think of it as a pre-approval that gives you (and sellers) confidence that you can get a mortgage.
Why Do You Need an AIP?
- Shows sellers you're serious: Estate agents and sellers prefer buyers who already have an AIP — it means you're not just window shopping
- Speeds up the process: Once you find a property, having an AIP means you can move straight to a full application
- Sets your budget: Knowing exactly how much you can borrow helps you search for homes in the right price range
- Strengthens your offer: In competitive markets, an AIP can make the difference between your offer being accepted or rejected
How to Get an Agreement in Principle
The process is straightforward and usually takes 15–30 minutes:
- Provide basic personal details (name, address, date of birth)
- Share your income and employment details
- Disclose monthly outgoings and existing debts
- The lender runs a soft credit check
- You receive your AIP — usually within minutes
A mortgage broker can handle this for you and ensure you apply with the right lender for your circumstances — avoiding unnecessary hard credit checks.
What Happens After You Get an AIP?
- Start house hunting: Armed with your budget, search for properties in your price range
- Make an offer: When you find the right property, your AIP strengthens your position
- Full mortgage application: Once your offer is accepted, your broker submits a full application to the lender
- Detailed checks: The lender verifies your income, runs a full credit check, and values the property
- Mortgage offer: If everything checks out, you receive a formal mortgage offer (typically 2–4 weeks)
- Legal work & completion: Your conveyancer handles the legal side, then you collect the keys!
Can You Be Rejected After Getting an AIP?
Yes — and it's more common than you might think. Reasons include:
- Your circumstances changed (new debts, job change, reduced income)
- The full credit check reveals issues not caught in the soft check
- The property valuation comes in lower than expected
- You provided inaccurate information in the AIP application
- The lender's criteria changed between AIP and full application
This is exactly why working with a broker is valuable — we know which lenders are most likely to approve based on your full circumstances, reducing the risk of rejection.
Tips for a Smooth AIP Process
- Don't apply for new credit between getting your AIP and completing
- Keep your employment stable — don't change jobs mid-application
- Be honest about your income and debts — discrepancies cause delays
- Use a broker to ensure you apply with the right lender first time
- Renew your AIP if it expires before you find a property
Get Your Free Agreement in Principle Today
We can arrange your AIP quickly and ensure it's with the right lender for your situation — completely free. No fees, no obligation, and no impact on your credit score.
Frequently Asked Questions
- Does an agreement in principle affect my credit score?
- Most lenders now use a 'soft' credit check for AIPs, which doesn't appear on your credit file and won't affect your score. A few lenders still use hard checks — your broker will know which ones.
- How long does an AIP last?
- Typically 60–90 days, depending on the lender. If it expires before you find a property, you can simply get a new one. Your broker can arrange this quickly.
- Is an AIP the same as a mortgage offer?
- No. An AIP is an indication of what a lender might offer. A mortgage offer comes after a full application, credit checks, income verification, and property valuation. The offer is the binding commitment.
- Can I be rejected after getting an AIP?
- Yes. An AIP is not a guarantee. Your full application could be declined if your circumstances change, the property valuation is low, or the detailed credit check reveals issues not caught in the initial check.
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