Definition
An Agreement in Principle is an early estimate based on information such as income, spending, deposit and credit history. It is not a mortgage offer, and the lender can still change the amount or decline after checking documents and the property. The initial credit search may be soft or hard, depending on the lender.
Practical example
A lender might issue an AIP before you make an offer, then reassess the case when it receives payslips, bank statements and property details.
Why it matters
It can help set a property budget, but it should not be treated as guaranteed funding.
Mortgage in principle guideSource and review
Reviewed 16 July 2026. Product criteria and rules can change.
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