Skip to main content
Applications and affordability

What is Agreement in Principle (AIP)?

A provisional indication of what a lender might be prepared to lend.

Also called: Mortgage in Principle, Decision in Principle, DIP, MIP

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 guide

Source and review

Reviewed 16 July 2026. Product criteria and rules can change.

MoneyHelper: mortgage in principle

Discuss your mortgage with a broker

We can introduce you to an FCA-authorised mortgage broker. MortgageConnector does not provide regulated advice, and using the matching service does not commit you to proceed.

Request a broker match