Mortgages
What is an Agreement in Principle?
Last reviewed: 3 October 2026
The brief answer
An Agreement in Principle (also called a Decision or Mortgage in Principle) is a preliminary indication of how much a lender may be willing to lend based on the information available at that stage. It is not the same as a final mortgage offer.
In plain English
To issue an AIP, a lender looks at basic information about your income, outgoings and credit history. Many lenders run a credit check at this stage — ask whether it is a 'soft' search (not visible to other lenders) or a 'hard' search.
Estate agents often ask to see an AIP before they put your offer forward, because it shows you have started arranging finance.
An AIP usually lasts for a limited time set by the lender. When you have an accepted offer, the lender assesses a full application, values the property and only then may issue a mortgage offer. The final amount can differ from the AIP, or the application can be declined.
Why it matters
It helps you search at a realistic price and makes your offer more credible to sellers.
What to do next
- 1Prepare your information and documents.
- 2Speak to an FCA-authorised mortgage adviser or a lender.
- 3Note the expiry date of your AIP.
Checklist
- I understand an AIP is not a mortgage offer
- I know whether the credit search is soft or hard
- I know when my AIP expires