What is a mortgage Agreement in Principle (AIP)?

An Agreement in Principle (also called Decision in Principle) is a lender's conditional commitment to lend you a certain amount. It's based on a credit check and your stated income, typically valid for 60-90 days.

An AIP shows estate agents and sellers that a lender has assessed your finances and is willing to lend you a specific amount in principle. It strengthens your position when making offers on properties. Getting an AIP involves providing income details, employment information, and undergoing a credit check (some lenders use soft checks that don't affect your score). The AIP isn't a guarantee - you'll still need to complete a full mortgage application - but it shows you're a credible buyer who can likely secure finance.