Agreement in Principle Explained
Published 2026-07-17 · Updated 2026-07-17 · ~5 min read
An agreement in principle (AIP) is a lender's early indication of how much it would be willing to lend you, based on a soft credit check that doesn't harm your score. It isn't a mortgage offer and isn't binding, but it shows estate agents you're a serious buyer and confirms your realistic budget. Most AIPs last around 30 to 90 days.
- An indication, not a guarantee or full offer.
- Soft credit check, no harm to your score.
- Lasts 30–90 days, and can be renewed.
- Essex agents expect one before taking your offer seriously.
The agreement in principle is the first genuinely useful step towards buying, the point where a vague "what could I afford?" becomes a number a lender has actually put its name to. This guide sits under our how to get a mortgage guide, and comes just before gathering your documents.
What exactly is an AIP?
An agreement in principle, sometimes called a decision in principle or a mortgage in principle, is a lender's early indication of how much it would lend you. It's based on the income and outgoings you provide plus a soft credit check. It carries real weight with sellers and agents, but it isn't the mortgage itself; that comes after a full application.
Does getting an AIP affect my credit score?
Generally not. Most lenders use a soft credit check for an AIP, a search only you can see, which doesn't affect your score. The hard search, the one lenders can see and which can nudge your score, happens later at full application. The one caution: don't collect lots of AIPs from different lenders in a short space, as a scattergun approach can still leave a footprint.
This is where a broker quietly saves your credit file. Rather than you applying for several AIPs to see who says yes, we assess which lender's criteria you meet first, then get a single AIP from the one that fits. You end up with a firm figure and a clean file.
How long does an AIP last, and can it be renewed?
Most agreements in principle are valid for around 30 to 90 days, depending on the lender. If you haven't found a home by the time it expires, it can usually be renewed. Bear in mind that if your circumstances (income, debts, credit) have changed in the meantime, the renewed figure may not match the original.
Why estate agents want to see one
In much of Essex, well-priced homes attract competing offers, and agents have to advise sellers on which buyers are credible. An AIP tells them your finance is realistic and largely lined up. Turning up with one already in hand puts you ahead of a buyer who still has to find out whether they can borrow enough.
An AIP isn't a promise
It's important to keep the AIP in perspective: it's a strong indication, not a binding offer. The full application digs deeper, and the property valuation can still change things, a down-valuation or something the soft check didn't capture can affect the outcome. Treat the AIP as confirmation you're on solid ground, not as a done deal.
25 years arranging agreements in principle for Essex buyers while protecting their credit files. Full bio →
Ready to get your budget confirmed with an AIP? A mortgage broker in Essex can arrange one with the right lender and keep your credit file clean.
Get in touchAIP questions
What is an agreement in principle?
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Is an agreement in principle a guarantee?
Do I need an AIP to make an offer on a house?
Can an agreement in principle be declined?
Your home may be repossessed if you do not keep up repayments on your mortgage.
Bradgate Financial Solutions Ltd is authorised and regulated by the Financial Conduct Authority. FCA Firm Reference Number 672856. General information, not personal advice.
Reviewed by David Clark, CeMAP, 2026-07-17.