Agreement in Principle
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What is an Agreement in Principle?
An Agreement in Principle has a few different names – an AIP, a Decision in Principle (DIP), a Mortgage in Principle, and sometimes a Mortgage Promise. It’s basically an indication from a lender of how much they might be willing to lend someone for a mortgage.It’s based on quick assessments of that person’s income, their outgoings and their credit history. An AIP is not a full mortgage offer. It’s literally a certificate to give you an idea of your borrowing, and can be a massive help when reserving or making an offer on a property.
It’s the start of the mortgage process. It doesn’t take long, but it’s a crucial factor and most estate agents will want to see that.
What should I do if my estate agent is asking to see my Agreement in Principle? How do I get one?
It’s completely normal in the UK for an estate agent to ask for an Agreement in Principle. It helps confirm your financial credibility, which also helps an estate agent avoid wasting time on viewings. It also can strengthen your offer on a property, when the agent discusses it with the sellers.If an estate agent asks for this, don’t panic – it’s standard practice. Via the Mortgage Bubble, you will already have an Agreement in Principle before looking for a property to buy. However, you can get an AIP from any lender or broker.
If you’re speaking directly to your bank, be aware that they can only talk to you about their own lending criteria and products. Through a mortgage broker, you have access to a comprehensive range of lenders, which could mean you can borrow more or get incentives like a free mortgage valuation or cashback. Speaking to a mortgage advisor does have its benefits.
Do I have to have an Agreement in Principle through the estate agents I’m looking to purchase through?
No, absolutely not. You’re not obliged to use the estate agent’s recommended mortgage broker at all. You’re completely free to use your own mortgage broker, and using the in-house broker won’t get you a better mortgage deal.Go with what makes you feel most comfortable. Normally someone looking to buy a property and viewing through an estate agent has already looked at their finances. They may already have an Agreement in Principle.
Nine times out of ten our clients have already got that relationship with us. Nobody has to use the mortgage broker through the estate agent unless they want to.
How reliable is an Agreement in Principle? How long does an AIP last?
An Agreement in Principle is just a useful guide of how much you can borrow. It’s not a guaranteed offer of that mortgage amount.It’s only based on initial checks, while a full mortgage application involves deeper assessment, more checks and a look at proof of income via payslips or tax returns. Credit scoring and the property itself can affect the final decision.
An AIP is typically valid for 30 to 90 days, depending on the lender. If the AIP does expire, it can easily be extended, although a new credit search could be done.
If you’re not sure of the options available to you, seek advice from a mortgage advisor. We go through that with you and answer any questions about the Agreement in Principle and how long it’s valid for.
Can I make an offer with an Agreement in Principle?
Yes, you can make an offer on a property with an AIP, and, in fact, it makes your offer more attractive to sellers.It shows you’re financially prepared, giving you an edge in a competitive market. Most estate agents will expect you to have an Agreement in Principle before a seller will accept your offer.
Does an Agreement in Principle mean you’ll get a mortgage?
No, an Agreement in Principle doesn’t guarantee a mortgage and it’s not a mortgage offer. It simply means that based on the initial information, the lender is likely to lend to you.Full mortgage approval depends on the lender verifying the information on the Agreement in Principle plus your application. That’s done by assessing your supporting documents and doing a property valuation to make sure it’s within that lender’s criteria.
Your credit is also fully assessed. Again, if you’re using a mortgage advisor, we would do all those checks before processing the full application.
Once all the checks are done, normally a mortgage offer is issued. That’s more binding, because all that’s left is for the solicitors to do the legal work and draw down the funds for mortgage completion.
Will I need a credit check? Does an Agreement in Principle affect credit score?
Yes, a credit check will be needed. However, the type of credit check depends on the lender.There are two types of checks. A soft credit check is most common – these won’t affect your credit score and are only visible to you. The other is a hard credit check. This is more common when a full mortgage application is submitted, and could impact your credit score. It will also be visible to others.
The type of search used for an Agreement in Principle can differ from lender to lender. We suggest you check with your bank or mortgage advisor before proceeding, so you’re fully aware of what’s happening when that Agreement in Principle takes place.
How do I apply for an AIP? How long does this process take?
To apply for an AIP, you would supply personal details, income information, employment status, an estimated purchase price, an estimated deposit and planned borrowing.We discuss all of this in our initial fact-find meeting with you, anyway. Then, you can apply through either your mortgage broker or directly with your bank, online.
It takes anywhere from 15 to 20 minutes to complete, depending on the lender, and the decision is often instant. However, if the AIP gets referred, a decision can take up to 24 hours to come back.
Again, if you’re using a mortgage broker, we’ll talk you through the results and what happens next. If you go directly through your bank, they should have guides on their website to explain what happens once an AIP has been submitted.
You’ve demonstrated how a mortgage broker can help, as always – is there anything else we need to know?
I feel a mortgage broker can be incredibly valuable, especially as we can access a comprehensive range of lenders and mortgage products that aren’t available directly from a bank.We can also foresee any issues that may arise, especially around income or credit scoring. Obviously, issues regarding the property valuation are outside our control, but we’re here to support and advise on that. We put a client with suitable lenders for their circumstances, which dramatically increases the chances of mortgage success.
A mortgage broker also deals with all the processing, and prepares you for any documentation that’s needed. The benefits can be massive – especially if you’re a first-time buyer.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 08/04/2026.
Published 04/2026.
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At The Mortgage Bubble, we provide personalised and comprehensive services and support. From the first meeting to completion, we are here to guide you throughout your financial journey.
Agreement in Principle (Part 2)
Joe Joyce answers more questions about an Agreement in Principle. Episode two of two, recorded in April 2026.
Podcast approved by The Openwork Partnership on 18/05/2026.
When should I get an Agreement in Principle?
We recommend getting one as soon as possible, as soon as we’ve done the initial research and given you some advice. It’s always a very positive thing to do.
Whilst it’s not a formal mortgage offer, it’s a step on from the initial consultation towards that full application and offer process. It gives you more confidence in your ability to obtain the required mortgage.
What information do I need to get an Agreement in Principle?
Initially, the required information includes personal information like your date of birth, address, and any dependents. Then we move on to your income – how much you’re paid and how.
Next we look at your outgoings – credit commitments, general spending, utility bills etc. Information around your planned purchase price and mortgage required is always handy. That’s the basic information required.
How is affordability calculated for an Agreement in Principle?
There’s not really a one-size-fits-all approach. Lenders tend to assess each case on its own individual merits.
Generally, the total borrowing will depend on factors such as your age, how long you’re taking the mortgage for, your income, and outgoings. That’s where we as brokers come in to help assess that and find out what your potential borrowing would be.
Is an Agreement in Principle guaranteed? Can my mortgage be declined after an Agreement in Principle?
Yes, you can be declined after an Agreement in Principle. Your application is still subject to a full underwriting process and approval. We can limit this as much as possible by getting detailed information at the very start of the process. We’ll advise you accordingly to avoid that happening.
Can I get an Agreement in Principle if I’m a first-time buyer?
Yes, absolutely. There’s even more reason to do so for first-time buyers, as it helps you understand what your potential borrowing is.
It’s also something estate agents will ask you for when registering to view properties, as it shows you’ve done your research – which puts you in a much better position. We particularly recommend that first-time buyers get that Agreement in Principle done early.
How will bad credit affect an Agreement in Principle?
Providing it’s been pre-disclosed, we can assess lenders who take into account any previous bad credit and adjust our advice accordingly. The details behind that bad credit may change the lenders that are available to you – as some are more lenient and happy to take on clients with bad credit.
Is it harder to get an Agreement in Principle if I’m self-employed?
Contrary to popular belief, no. It’s no harder than for a standard employed applicant, provided we get the correct information. It usually just means getting slightly different documents.
I’ve been declined an Agreement in Principle. What can I do?
We assess why the lender has declined – that’s the most important first step. Often, lenders will give a reason as to why they’ve rejected a client.
Once we understand these reasons, we can approach different lenders who may be able to help, and approach them for an Agreement in Principle for you.
What are the benefits of getting an Agreement in Principle with a mortgage broker? Any final thoughts?
Brokers not only understand the lender’s affordability, but also their criteria. Quite often, clients go straight to the bank they’ve been with for years. But just because you bank with that lender, it doesn’t mean they’re the most suitable for your mortgage.
It may be that by the time you find a property and have an offer accepted, a different lender might be the most suitable for you. We can switch you across to that bank to help you progress towards buying a home.
Key Takeaways:
- It is recommended to obtain an Agreement in Principle (AIP) as soon as possible after initial research and advice, as it builds confidence toward a full mortgage application.
- An AIP is not a formal guarantee; the application remains subject to a full underwriting process and approval, meaning it can still be declined.
- Affordability is not determined by a one-size-fits-all approach, as lenders assess each case on its individual merits, considering factors like age, mortgage term, income, and outgoings.
- First-time buyers are particularly encouraged to get an AIP early, as it helps them understand their potential borrowing and shows estate agents they are serious when registering to view properties.
- Mortgage brokers are key because they understand various lenders’ affordability and criteria, access options across an extensive range of lenders, and can help mitigate issues like pre-disclosed bad credit or find a more suitable lender even after an initial AIP has been secured.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 18/05/2026.
Published 05/2026.