Finance, Mortgages

What Is a Mortgage Agreement in Principle and How Do I Get One?

If you’re thinking about buying a home or remortgaging, chances are you’ll come across the term “Agreement in Principle“ (AIP). It’s an important early step, but what does it actually mean, and how do you get one?

In this guide, we’ll explain what an AIP is, why it matters, what could affect your chances of getting one, and what to do next.

What Is a Mortgage Agreement in Principle?

A mortgage Agreement in Principle (also known as a Decision in Principle or Mortgage in Principle) is a statement from a lender showing how much they might be willing to lend you, based on a quick assessment of your finances.

It’s not a formal mortgage offer, but it gives you a clear idea of your borrowing power and shows estate agents and sellers that you’re a serious buyer.

Why Is an AIP Useful?

Getting an Agreement in Principle can:

  • Help you set a realistic property budget
  • Strengthen your offer when buying a home
  • Speed up the application process once you’ve found a property
  • Give confidence to sellers and estate agents that you can proceed

Some estate agents may even ask to see an AIP before accepting an offer, so having one in place early can help you move quickly when the time is right.

Does an AIP Affect Your Credit Score?

Most lenders use a soft credit check, which won’t affect your score. However, some may run a hard check, which does leave a mark on your credit report.

If you’re sure, it’s worth asking first, or speak to a broker like Lendese, who can guide you through lenders that match your circumstances.

How to Get an Agreement in Principle

Getting an AIP is usually quick and straightforward. You’ll have to share:

  • Your income and employment details
  • Monthly outgoings (loans, credit cards, etc.)
  • Deposit amount or estimated property value
  • Address history and basic personal details

You can apply:

  • Directly with a lender
  • Or through a mortgage broker, who can compare options across the market

At Lendese, we’ll handle the paperwork and ensure the lender sees your full picture, improving your chances of success.

 

Tip: If you’ve declined or are unsure about your situation, working with a broker can help. At Lendese, we know which lenders are more flexible and can guide you toward one that fits your circumstances.

Speak to an advisor

How Long Does an AIP Last?

Most Agreements in Principle are valid for 30 to 90 days, depending on the lender. If yours expires before you’ve found a property, don’t worry — it can usually be renewed quickly with updated details.

What Happens After You Get an AIP?

Once you’ve your Agreement in Principle, here’s what typically happens next:

  1. Start property hunting with confidence
  2. You’ll see how much you can borrow, so you can focus on realistic properties within your budget.
  3. Make an offer
  4. If you find the right place, you can make an offer with your AIP to show sellers you’re ready to proceed.
  5. Submit a full mortgage application
  6. Once your offer is accepted, it’s time to apply for a mortgage in full. This involves:
    • Providing documents (ID, bank statements, payslips, pension statements, etc.)
    • Full credit checks and affordability assessments
    • A property valuation arranged by the lender
  7. Mortgage offer issued
  8. If approved, you’ll receive a formal mortgage offer, and your solicitor can begin the final legal process.

Need help gathering documents or understanding the process?

Lendese can guide you step-by-step through your application and make sure nothing’s missed.