Agreement in Principle

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Agreement in Principle (Part 1)

Henny Lessey explains how an Agreement in Principle works.

What is an Agreement in Principle?

An Agreement in Principle is a lender’s early indicator of how much they may be willing to lend you. It’s also called a Decision in Principle, a Mortgage in Principle, a Mortgage Promise or Approval in Principle.

What should I do if my estate agent is asking to see my Agreement in Principle? How do I get one?

You can share it with them, but you don’t have to provide all the details. You can get an Agreement in Principle from a lender or a mortgage broker, usually online in minutes.

Do I have to have an Agreement in Principle through the estate agents I’m looking to purchase through?

No, you can get an Agreement in Principle from any lender or broker you choose. You’re never tied to the estate agent’s in-house service.

How reliable is an Agreement in Principle and how long does an AIP last?

It’s a good guide, but it’s not a guarantee. Most Agreements in Principle last between 30 and 90 days, depending on the lender.

Can I make an offer with an Agreement in Principle?

Yes, an Agreement in Principle strengthens your offer and shows you’re a serious buyer.

Does an Agreement in Principle mean you’ll get a mortgage?

Not necessarily. The full application still requires deep checks on your documents, credit, and the property itself.

Will I need a credit check? Does an Agreement in Principle or Decision in Principle affect credit score?

Most lenders run a soft check that doesn’t affect your score. A few may run a hard check, which can leave a temporary mark on your credit file.

How do I apply for an AIP and how long does this process take?

You can apply online or through a broker by answering some basic financial questions. It usually takes anywhere from a few minutes to a couple of hours.

How can a mortgage broker help here? Is there anything else we need to know?

A broker will find the right lender, handle the paperwork and improve the chances of you getting approval. We also help you avoid lenders that may decline you later.

Key Takeaways:

An Agreement in Principle (AIP) is a lender’s early indicator of the amount they may be willing to lend you.
The AIP strengthens your offer and shows you are a serious buyer.
It is a good guide, but not a guarantee of a mortgage, as the full application involves deep checks on documents, credit, and the property.
You can get an AIP from any lender or broker and are not tied to the estate agent’s in-house service.
Most lenders perform a soft credit check that does not affect your score, and the application process usually takes a few minutes to a couple of hours.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.

THERE MAY BE A FEE FOR MORTGAGE ADVICE. THE PRECISE AMOUNT OF THE FEE WILL DEPEND UPON YOUR CIRCUMSTANCES BUT WILL RANGE FROM £99 TO £999 AND THIS WILL BE DISCUSSED AND AGREED WITH YOU AT THE EARLIEST OPPORTUNITY.

ASSET HARBOUR MORTGAGE AND PROTECTION LIMITED TRADING AS ASSET HARBOUR MORTGAGE AND PROTECTION ARE AN APPOINTED REPRESENTATIVE OF HLP PARTNERSHIP LIMITED, WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

ASSET HARBOUR MORTGAGES & PROTECTION LTD ARE REGISTERED IN ENGLAND AND WALES. REGISTERED NO: 11945863. REGISTERED OFFICE: 54A CHURCH ROAD, ASHFORD, MIDDLESEX, UNITED KINGDOM, TW15 2TS.

Speak To an Expert

We can advise how much you can borrow, find the most suitable lender and have that Decision in Principle in place. Then, when you do make an offer on a property, you’re ready to go.

Agreement in Principle (Part 2)

We continue the conversation on how an Agreement in Principle works with Joe Nicholls. Episode two of two, recorded in April 2026.

When should I get an Agreement in Principle?

You should get an Agreement in Principle before you start viewing houses and definitely before you make an offer.

What information do I need to get an Agreement in Principle?

To get an Agreement in Principle, you need to have your basic financial details ready, such as your income, employment information, credit commitments and deposit.

How is affordability calculated for an Agreement in Principle?

Lenders use a stress test to calculate affordability. They don’t just look at your salary, they look at how much disposable income you have left after your bills are paid.

Can I get an Agreement in Principle if I’m a First-Time Buyer?

Yes, absolutely. In fact, as a first-time buyer, an Agreement in Principle is your most important tool. It proves to sellers and the estate agents that you’re a serious buyer who has done their homework, even if you’ve never owned a home before.

How will bad credit affect an Agreement in Principle?

Bad credit doesn’t necessarily mean you can’t get an Agreement in Principle, but it can make the process more complex. Most high street banks may decline you automatically, but specialist lenders often look at why and when the bad credit happened.

Is it harder to get an Agreement in Principle if I’m self-employed?

It isn’t necessarily harder, but it does require more evidence. While an employee just needs to evidence payslips, if you’re self-employed a lender needs to see the track record of your business. They want to feel confident that you can pay them back by looking at the latest two years’ accounts or personal tax calculations.

I’ve been declined an Agreement in Principle. What can I do? What are the next steps?

Being declined can feel like a major setback, but it usually comes down to credit, affordability or incorrect information. It would be beneficial to approach a mortgage broker who can then review the information provided and see what caused the decline. The broker could then find an alternative solution if possible.

What are the benefits of getting an Agreement in Principle with a mortgage broker?

Getting an Agreement in Principle through a mortgage broker offers several distinct advantages over going directly to a single bank.

Because brokers have access to different lenders, we can compare thousands of deals from dozens of lenders to find the one that best suits your specific financial profile.

We’ll help you uncover lower interest rates or exclusive deals that aren’t available to the general public.

Key Takeaways

An Agreement in Principle should be secured before you start viewing houses and definitely before you make an offer.
Affordability is calculated by lenders using a stress test that focuses on your disposable income remaining after your bills, not just your salary.
An Agreement in Principle is the most important tool for first-time buyers, as it proves to sellers and estate agents that they are a serious buyer.
If declined an Agreement in Principle, the cause is usually credit, affordability, or incorrect information, and approaching a mortgage broker can help review the decline and find an alternative solution.
Mortgage brokers offer distinct advantages over single banks by comparing thousands of deals to find the best fit and potentially uncovering lower interest rates or exclusive deals.

Your home or property may be repossessed. If you do not keep up repayments on a mortgage.

There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances, but will range from £99 to £999, and this will be discussed and agreed with you at the earliest opportunity.

Asset Harbour Mortgage and Protection Limited, trading as Asset Harbour Mortgage and Protection, are an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.

Asset Harbour Mortgages and Protection Ltd is registered in England and Wales. Registered number 11945863. Registered Office 54A Church Road, Ashford, Middlesex, United Kingdom TW15 2TS.