What is an agreement in principle?

An agreement in principle, also called an AIP, DIP or decision in principle, is an indication from a lender of roughly how much it might lend you, based on figures you declare and a credit check. It is not a mortgage offer and it is not binding on the lender, but estate agents often want to see one before they treat an offer as serious.

Does an agreement in principle affect my credit score?

It depends on the lender. Some run a soft search, which only you can see on your credit file and which does not affect your score. Others run a hard search, which is visible to other lenders and can have a small effect, particularly if several are recorded in a short period. Ask which type will be used before you agree to one.

How long does an agreement in principle last?

Commonly between 30 and 90 days depending on the lender. They can usually be renewed, though a renewal may mean a fresh credit check and a fresh assessment against whatever the lender's criteria say at that point.

Can you be declined after an agreement in principle?

Yes. An AIP is based on declared figures and a limited check. At full application an underwriter reviews your actual documents, the property is valued, and the case is assessed properly. If the paperwork shows something different from what was declared, or the valuation comes in low, a case can still be declined.

Agreement in Principle Explained (AIP/DIP)

Plain-English guide · no advice, just how the market works

An agreement in principle is a lender’s early indication of roughly what it might lend you. You will also see it called a decision in principle (DIP), a mortgage in principle or a lending certificate. They all mean the same thing, and the names are interchangeable enough that you should not read anything into which one a firm uses.

What it actually is

You give a lender some figures: income, outgoings, deposit, the rough price range. The lender runs those through its affordability model, performs a credit check, and returns an indicative maximum. It usually takes minutes online and it produces a certificate you can send to an estate agent.

Crucially, nobody has checked anything yet. No payslip has been read, no property has been valued, no underwriter has looked at your case. The lender is answering the question “if all of this is true, is this the sort of thing we lend on?”

What it is for

Credibility with agents. Most estate agents want to see one before putting your offer to a seller, and some will not book viewings without it.
A reality check on budget. Better to learn the number before falling for a house above it.
An early warning. If it is declined, you have found a problem while it is cheap to fix.

The soft search versus hard search question

This is the part worth understanding properly.

A soft search is visible only to you on your credit file. Other lenders cannot see it and it has no effect on your score. A hard search is recorded and visible to other lenders, and several in a short window can look like someone applying for credit everywhere at once.

Lenders differ on which they use at AIP stage. Many use a soft search, some use a hard one, and some use a soft search that converts to a hard one at a later step. Ask before you consent. Any broker or lender should be able to answer immediately, and being unable to is itself informative.

If your credit file already has history on it, this matters more, because both the number of searches and the choice of lender need thinking about. Our credit history page covers how specialists approach that.

AIP versus mortgage offer

These are frequently confused and they are not remotely the same thing.

Agreement in principle: indicative, based on declared figures, no documents checked, no property involved, not binding.
Mortgage offer: the formal commitment, issued after full underwriting, document verification and a valuation of the specific property. This is the one that means something.

Between the two sits the part that takes the time. Our guide to how long a mortgage takes walks through each stage.

Can you be declined after getting one?

Yes, and it happens. The usual reasons:

Declared income did not match the documents. Rounding up, or including bonus income the lender does not count in full.
Commitments that surfaced later. Car finance, a personal loan, buy-now-pay-later agreements.
Something on the credit file that the initial check did not surface but the full one did.
The property. A down valuation, or a construction type or lease length that lender will not touch.
A change in your circumstances between the AIP and the application, a new job or probation period being the classic.

If it does happen, it is not the end of the process. Our guide on being declined explains what to do next and, more importantly, what not to do.

How many should you get?

One, from a lender chosen because it actually suits your circumstances. Collecting AIPs from several lenders to compare is a costly habit if any of them use hard searches, and the number an affordability calculator produces is not the number that matters anyway.

This is the practical argument for talking to a broker first: they can narrow the field to lenders whose criteria fit before anything touches your credit file. If you are weighing up whether that is worth it, read do I need a mortgage broker.

How long it lasts

Typically 30 to 90 days, lender depending. Renewals are usually possible but often mean a fresh check against whatever the criteria say then, which may not be what they said before. If your AIP is about to expire mid-purchase, flag it early.

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Agreement in principle, explained