Mortgage Brokers ListAgreement in Principle
An Agreement in Principle (also called a Decision in Principle or Mortgage in Principle) tells you roughly what a lender will offer. Getting one right can protect your credit file; getting one wrong can dent it.
Last checked 13 September 2026.
Six sections. Each anchored to a first-party source, checked 13 September 2026.
1. What an AiP is
An Agreement in Principle is a written statement from a lender saying it would, in principle, lend you a stated amount. It is not a mortgage offer and it is not binding on the lender. It is conditional on the property valuation, full credit and income checks, and the lender's policy at the time you make a full application. Estate agents routinely ask to see one before accepting an offer on a property.
2. Hard search versus soft search
When a lender runs an AiP, it can use either a hard credit search or a soft credit search. A hard search creates a visible mark on your credit file that other lenders and credit providers can see; a soft search does not. Multiple hard searches in a short window can lower your credit score because they look like repeated unsuccessful applications for credit. The ICO explains what is recorded and who can see it: ICO — Credit reference agencies. Many lenders now use soft searches for their AiP stage; ask before you start. If an estate agent directs you towards a specific lender, ask whether that lender's AiP uses a hard or soft search.
3. What the AiP doesn't guarantee
An AiP is not a binding commitment. The lender can withdraw or reduce the amount at full application if your circumstances have changed, if the property doesn't value at the agreed price, if the full credit checks reveal more than the soft search showed, or if the lender changes its criteria. Treat the AiP amount as an upper ceiling for your property search, not a confirmed sum.
4. How long it lasts
Most AiPs are valid for 30 to 90 days. If it expires before you find a property, you'll need a new one. If you renew with the same lender using the same application data, many lenders will not run a new hard search for the renewal. If you are considering properties at the upper end of your AiP amount, factor in that the full application may produce a slightly lower offer once all documents are checked.
5. Using the AiP with estate agents
Show the AiP to the estate agent when you make an offer; it signals that you've done at least a preliminary check and are a credible buyer. Keep your circumstances stable between getting the AiP and completing the full application: new credit (a car loan, a credit card), a job change or a large purchase before exchange can all affect the lender's final decision.
6. From AiP to full application
Once your offer is accepted, you move to the full mortgage application, which will involve a hard credit search if one wasn't done at AiP stage, submission of income documents, and a property valuation. Your broker should explain what the lender needs and by when. If you don't yet have a broker, getting one before the full application is worthwhile: brokers can compare rates across multiple lenders, not just the one that issued your AiP. At the start the broker must tell you the range of lenders it can access and any fee it charges (MCOB 4.4A.1R).
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General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.