Getting your Agreement in Principle
An AIP is a conditional lender indication, not a mortgage offer. Some lenders use a soft credit search and others a hard search. Ask which search applies before proceeding; approval, validity and timing depend on the lender and the information provided.
An AIP is a conditional lender indication, not a mortgage offer. Some lenders use a soft credit search and others a hard search. Ask which search applies before proceeding; approval, validity and timing depend on the lender and the information provided.
Who this is for
- You are about to start viewing properties and need a number to take to estate agents.
- An agent has asked for proof you can afford the offer you want to make.
- Your previous Agreement in Principle has expired and you need a refresh.
- You are weighing up two lenders and want to know which one will say yes.
An Agreement in Principle, also called a Decision in Principle, is a lender's conditional indication of what it might lend based on the information and checks at that stage. It is not a mortgage offer.
Soft search versus hard search
Some lenders use a soft credit search and others a hard search. A hard search is visible to other lenders and can affect later applications. Ask which applies before proceeding, especially if you are considering more than one application.
How long an AIP lasts
The lender sets its validity period. Check the expiry and tell your adviser about changes to income, employment, debts or other relevant circumstances; the indicated amount may need to be reassessed.
Why the lender matters
Accepted income, affordability and property criteria differ. Review the full case before choosing an AIP. A successful indication does not establish the outcome of full underwriting or guarantee the same loan amount.
Documents and information
The evidence depends on the lender and circumstances. Payslips, bank statements, tax records or company accounts, identity and address evidence may be needed. Ask your adviser what is required at this stage and at full application.
A numerical illustration
Multiplying an assumed household income of £75,000 by 4.5 gives £337,500. That is arithmetic only, not an AIP, lender criterion or affordable loan assessment. A £320,000 purchase with a 10% deposit requires £288,000 before any added fees, but the lender must assess the applicants and property.
What happens at full application
The lender checks income and documents, affordability, credit and the property valuation. Changes in circumstances, criteria or valuation can affect the outcome. A mortgage offer remains subject to its stated conditions.
Making an offer on a property
An estate agent may ask for evidence of your financial position. An AIP is not a legal requirement for making an offer. Check what the seller or agent needs, while keeping the AIP's limits clear.
How Major Money Matters helps
Specific things we do for this case type. No generic platitudes.
Pick the right lender for your AIP
Review current criteria and the full case before choosing an AIP; the indicated amount remains conditional.
Explain the credit-search type
Ask which search the lender uses before proceeding. Some use soft searches and others hard searches; further applications need careful consideration.
Review an expired AIP
Check whether the AIP has expired or your circumstances have changed. Any new indication depends on current criteria, the evidence supplied and the lender's checks.
Brief you for the full application
AIP is half the job. We line up the documents you will need at full application, before you accept an offer, so the case moves cleanly.
Frequently asked questions
How long does it take to get an Agreement in Principle?
Timing depends on the lender, its checks and the information supplied. An automated indication may be quick, while a case needing manual review or more evidence can take longer. Ask your adviser about the chosen lender's current process.
Will an AIP affect my credit score?
An AIP is a conditional lender indication, not a mortgage offer. Some lenders use a soft credit search and others a hard search. Ask which search applies before proceeding; approval, validity and timing depend on the lender and the information provided.
Is an AIP the same as a mortgage offer?
An AIP is a conditional indication at an early stage. A mortgage offer is issued after fuller underwriting and a property valuation, and remains subject to its conditions.
My AIP just expired. What now?
We refresh it. Lender-issued AIPs typically expire at 30, 60 or 90 days. We re-stress against your current circumstances and re-submit. No fee for a refresh.
Can I have an AIP with more than one lender?
Yes, but there is rarely a reason to. We pick the right lender for your case at the start. If a stronger AIP at a different lender would help your offer, we run a second one without leaving a hard footprint.
Can I have more than one Agreement in Principle?
An AIP is a conditional lender indication, not a mortgage offer. Some lenders use a soft credit search and others a hard search. Ask which search applies before proceeding; approval, validity and timing depend on the lender and the information provided.
Can a mortgage be declined after an Agreement in Principle?
It can, although it is uncommon when the AIP was set up properly. The usual causes are information that does not match your documents, new borrowing taken out after the AIP, a change of job, or a low valuation. We check these points before the full application.
Is a mortgage in principle the same as an Agreement in Principle?
Yes. Agreement in Principle, Decision in Principle and mortgage in principle all describe the same thing: a lender's early indication of how much it would lend you.
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Get an Agreement in Principle on the right lender
An AIP is a conditional lender indication, not a mortgage offer. Some lenders use a soft credit search and others a hard search. Ask which search applies before proceeding; approval, validity and timing depend on the lender and the information provided.
Named adviser, wherever possible. No call centre. We aim to return your call as quickly as we can. Mon to Fri 9am to 5pm, weekend appointments on request.