Getting your Agreement in Principle

An Agreement in Principle (AIP), also called a Decision in Principle (DIP), is a screening decision from a lender. They look at your income, your monthly commitments, your deposit, and a soft credit check. They issue a written statement saying they would, in principle, lend you a specific amount on a specific maximum loan-to-value (LTV). It is not a mortgage offer. The full application is what produces a mortgage offer.

Soft search versus hard search

A soft credit search leaves no visible trace on your credit file that other lenders can see. A hard search does. We run AIPs on a soft search. Multiple hard searches in a short period can damage your credit profile, which is the opposite of what you want when you are about to apply for a mortgage. As a rule of thumb, expect a hard search to dip your credit score by 5 to 15 points and to remain visible to other lenders for 12 months.

How long an AIP lasts

Lender-issued AIPs typically expire at 30, 60, or 90 days. If your house hunt runs longer, we refresh, re-stress, re-submit. There is no fee for a refresh and most lenders issue the new AIP within 24 to 48 hours. The most common timeline we see is an AIP lasting two to three months while you view properties, then a fresh AIP from the same lender or a switched lender once you have an offer accepted.

Why the right lender matters at the AIP stage

Some lenders are stricter at AIP stage but lenient at full application. Others are the opposite. Some will issue an AIP at 4.5 times income but will not lend at 5 times even on a strong case. We pick a lender whose AIP appetite matches their full application appetite, so the number on the AIP is the number that will actually fund. A £250,000 AIP that turns into a £220,000 offer at full application is the worst kind of surprise; we work to avoid it.

What a strong AIP needs

Three months of payslips. Three months of bank statements. Photo ID. Proof of address dated within three months. If you are self-employed, the last two years of tax calculations (SA302) and tax year overviews, or full accounts if you are a limited company director. Anything missing slows the AIP.

Worked example, a couple on joint income

Two applicants on combined gross income of £75,000, with no dependants, £200 of monthly commitments and a 10% deposit on a £320,000 purchase. A 4.5x multiple lender produces an AIP at £337,500 of borrowing, comfortably above the £288,000 they need. A 5x multiple lender (rarer, available with the right profile) extends the AIP to £375,000, which gives them headroom to bid up. We pick which to run depending on the property and the negotiation.

What an AIP does not do

It does not value the property, so the loan is contingent on a satisfactory valuation. It does not bind the lender if your circumstances change between AIP and offer (new debt, change of job, missed payment all matter). It does not commit you to that lender, so if a better product appears at full application stage we can switch. We brief you on these limits up front so the AIP does its job and nothing more.

Common pitfalls we see

Multiple AIPs across multiple lenders in a short window leaves a trail of soft searches that some underwriters notice. Optimistic AIPs from comparison sites that ignore monthly commitments often turn into a smaller actual offer. AIPs from lenders that do not lend on your property type (for example, ex-local-authority flats, non-standard construction, or short-lease properties) waste time. We screen for all of these before running yours.