Mortgage Agreement in Principle Explained
An Agreement in Principle (AIP), sometimes called a Decision in Principle (DIP), gives you an early indication of how much a lender may be willing to lend — even before you find a property.
What is a Mortgage Agreement in Principle?
A written statement from a lender showing how much they’re likely to lend based on an initial review of your finances and credit record.
It’s not a full mortgage offer — you’ll still need to complete full underwriting once you apply.
Why is an AIP useful?
Gives you confidence when house hunting
You know what price range you can realistically afford.Strengthens your offer
Estate agents and sellers may take your offer more seriously if you have an AIP.Quick & non-committal
Usually done online or via your adviser, with no obligation to proceed with that lender later.
Will it affect my credit score?
Some lenders use a soft credit check for the AIP (which doesn’t affect your score), while others may do a hard check. We advise you before proceeding.
How long does an AIP last?
Typically valid for 60 to 90 days.
We obtain your AIP quickly and ensure it accurately reflects your borrowing position to give you confidence before viewing properties.
"An Agreement in Principle gives you clarity and negotiating strength when house hunting — but not all AIPs are equal. We’ll ensure your AIP is fully realistic and positioned correctly to help your property search go smoothly."