Agreement in Principle (Part 1)
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Agreement in Principle (Part 1)
Anthony McQuilliam talks to us about an Agreement in Principle.What is an Agreement in Principle?
An Agreement in Principle, Decision in Principle or Mortgage in Principle are all the same thing. There are just different terminologies. Essentially, it’s where you’ve got pre-approval for a mortgage from a bank, based on information a broker has put into the system plus your credit score. It gives you the confidence to start offering on properties, because you know the maximum mortgage you can get.What should I do if my estate agent is asking to see my Agreement in Principle? How do I get one?
By the point an estate agent’s asking for that, you should in theory already have an Agreement in Principle. You get one by speaking to your mortgage advisor – we find out what your plans are, your situation and what you’re looking to achieve in the long-run. Based on your situation, we speak to lenders and run a credit search to make sure your mortgage can be agreed. An estate agent will ask for this to prove you are a proactive buyer. Giving your Agreement in Principle to an estate agent should help you move forward in the buying process.Do I have to get an Agreement in Principle through the estate agents I’m looking to purchase through?
Not at all. It’s not mandatory to get an Agreement in Principle through the estate agent you’re viewing properties with. You can get a Mortgage in Principle from whoever you like. Some estate agents will invite you to have a conversation with their in-house broker, but there’s no requirement to do that. You can choose whoever you want to help you out with your mortgage.How reliable is an Agreement in Principle (AIP)?
A Mortgage in Principle is relatively accurate – otherwise, it wouldn’t be worth the paper it’s written on. They’re accurate, but it’s not 100% guaranteed you’ll get a mortgage. Things can change. The lenders may assess your documents differently once they see all the information on your case. While it’s not 100% accurate, it does give you a much better idea of how much you can afford, rather than just submitting an application once you find a property.How long does an AIP last?
A Mortgage in Principle usually lasts around three months. However, if your income fluctuates, perhaps because you’re on a commission-based role, it’s not until you submit your full application that the numbers are locked in. We can get your Agreement in Principle today, but perhaps you don’t get any commission for the next three months. The overall amount you can ultimately borrow may then decrease or increase depending on your situation.Speak to an expert
Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.
Can I make an offer with an Agreement in Principle?
Yes. If you make an offer with an Agreement in Principle it gives you a higher chance of being accepted.Does an Agreement in Principle mean you’ll get a mortgage?
Not necessarily. It gives you an idea that you can get your mortgage, but it isn’t 100% guaranteed. Your income could fluctuate, or the lenders may not like the property you want to purchase. Perhaps when they look at your application documents, something sets off alarm bells. So while an AIP increases your chances, it’s not a guarantee that your mortgage application will be accepted.Will I need a credit check? Does an AIP affect credit score?
It depends on the lender you go with. They will all run a credit search, but some use a soft search, which has less impact, and some run a hard search. Ultimately, if you’ve got good credit, a soft search isn’t going to cause any issues. In fact, as long as you’re not running multiple hard searches, it shouldn’t have too much impact on your ability to get a mortgage. Your score may drop slightly, but it doesn’t necessarily mean that you won’t be agreed for the mortgage.How do I apply for an AIP? How long does this take?
Speaking to a mortgage broker will give you access to more lenders than going directly to your bank. But ultimately, you can do it either way. With a broker, after our initial conversation, we speak to the lenders and get you the Mortgage in Principle. Depending on how complicated the case is, and if you’re very proactive in providing your documents – within half a day we can do the research and get your mortgage agreed.You’ve demonstrated throughout this how a mortgage broker can help. Have you got anything else to add?
It’s always beneficial to have a Mortgage in Principle in advance of actually going out to view properties. If you fall in love with a house and have your offer accepted, but you haven’t actually got your AIP, you may find you can’t afford that home. It’s much better to know what’s possible first, before you find something that’s out of your reach.Key Takeaways:
- An Agreement in Principle (AIP) is a mortgage pre-approval from a bank (also known as a Decision in Principle or Mortgage in Principle) and confirms the maximum mortgage amount you can get, giving you confidence to start offering on properties.
- Obtaining an AIP in advance of viewing properties is highly beneficial, as it ensures you know what you can afford before finding a house that may be out of your financial reach.
- Making an offer on a property with an AIP greatly increases the likelihood of your offer being accepted compared to other buyers who do not have one, as it provides proof that your mortgage can be agreed.
- Although an AIP is relatively accurate and gives a better idea of affordability, it is not a 100% guarantee of getting a mortgage. Final approval can be affected by fluctuating income, the specific property, or the full assessment of your application documents.
- You are not required to get an AIP through an estate agent’s in-house broker and are free to choose your own mortgage advisor, who, depending on the case’s complexity, can often secure the Agreement in Principle quickly.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 24/03/2026.
Published/recorded 03/2026.