What is an agreement in principle, and do I need one?
By Seema Babber · Reviewed by Aditi Sinha
· 3 min read
Quick summary
- An agreement in principle (AIP) is a lender’s indication of how much it may lend you, based on basic checks.
- It isn’t a guaranteed offer, but it helps you set a budget and shows sellers and agents you’re a serious buyer.
What the lender checks
Usually your income, outgoings and a credit search. Some lenders use a soft search that doesn’t show to other lenders.
How long it lasts
Typically 30 to 90 days, depending on the lender. It can be renewed if you haven’t found a property yet.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources
MoneyHelper — buying a home
Written by
Seema Babber · Mortgage adviser
Seema looks after buyers from the first affordability check to completion, working alongside a dedicated case handler so clients always have someone to call.
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