You can get an Agreement in Principle (AIP) by providing a mortgage lender or mortgage broker with some basic information about your income, deposit, credit history, and financial commitments.
The lender uses this information to assess how much it may be willing to let you borrow. If you meet its initial requirements, it can issue an Agreement in Principle to help you prepare for buying a property.
At Birminghammoneyman, we can usually arrange an Agreement in Principle within 24 hours of your initial mortgage appointment, depending on your circumstances and the lender involved.
What is an Agreement in Principle?
An Agreement in Principle is a document from a mortgage lender showing how much it might be prepared to lend you based on an initial assessment of your finances.
You may also hear it referred to as a Mortgage in Principle (MIP) or Decision in Principle (DIP). These terms generally refer to the same thing.
An AIP can be useful when buying your first home, moving to another property or checking your mortgage options before starting your property search.
It gives you an indication of your potential borrowing amount and can show estate agents that you’ve taken steps towards arranging your mortgage.
An Agreement in Principle is not a formal mortgage offer and doesn’t guarantee that your mortgage application will be approved. The lender will still need to check your supporting documents, assess your affordability in more detail and review the property you intend to purchase.
How Do You Get an Agreement in Principle?
Getting an Agreement in Principle usually involves providing some financial information, choosing a suitable mortgage lender and allowing the lender to carry out its initial checks.
1. Review Your Income and Deposit
Before applying, you’ll need an idea of how much you earn, how much you have saved towards your deposit and what financial commitments you currently have.
Mortgage lenders use this information to estimate how much you may be able to borrow.
Your employment circumstances can also affect how your income is assessed. For example, someone who is self-employed may be assessed differently from someone receiving a fixed annual salary.
At this stage, it’s also worth considering how much you would feel comfortable paying towards your mortgage each month, rather than focusing only on the maximum amount available.
2. Provide Your Personal and Financial Details
When applying for an AIP, you'll normally be asked for information such as:
- Your name, date of birth and address history.
- Your employment status and income.
- Your deposit amount and where it comes from.
- Your regular financial commitments, including loans and credit cards.
- Details of any existing mortgage or other significant borrowing.
The information you provide needs to be accurate, as the lender may request evidence when you submit your full mortgage application.
Depending on the lender and your circumstances, you may also be asked for supporting documents at this stage.
3. Choose a Suitable Mortgage Lender
Different mortgage lenders have different affordability calculations and lending criteria.
This means you could receive different borrowing amounts depending on which lender you approach.
For example, some lenders may assess self-employed income using an average of recent years, while others may consider the latest year’s figures or different combinations of salary and dividends.
We can review your circumstances and help you identify lenders whose requirements may be suitable for you.
4. Complete the Lender’s Credit Check
Most lenders carry out a credit check when assessing an Agreement in Principle.
Some use a soft credit search, which doesn’t affect your credit score. Others may carry out a hard search, which leaves a record visible to other lenders and could temporarily affect your credit rating.
The type of search used depends on the lender, so it’s worth checking before applying.
5. Receive Your Agreement in Principle
If you meet the lender’s initial requirements, it may issue an Agreement in Principle showing the amount it could be willing to lend you.
You can then use this information alongside your deposit and estimated buying costs to work out a potential property budget.
An AIP doesn’t mean you have to borrow the full amount indicated, and you aren’t committed to taking out a mortgage with that lender.
Why Should You Get an Agreement in Principle Before Viewing Properties?
Getting an Agreement in Principle before arranging property viewings can help you establish a realistic budget and show estate agents that you’ve started preparing your finances.
For example, if you’re comparing properties in Erdington, Northfield or neighbouring areas such as Sutton Coldfield, knowing your potential borrowing amount can help you narrow down your search.
It may also be useful when making an offer, as estate agents often ask buyers to demonstrate that they’re in a position to proceed with a purchase.
Having an AIP doesn’t guarantee that a seller will accept your offer or that the lender will approve your mortgage, although it can show that you’ve completed some initial financial checks.
Does an Agreement in Principle Help You Make an Offer?
Yes, having an Agreement in Principle can help when making an offer on a property.
An estate agent may ask to see your AIP alongside information about your deposit or whether you have a property to sell.
This helps the agent assess your position as a buyer and pass relevant information to the seller.
While an AIP can make your offer more credible, sellers will still consider factors such as the purchase price, your position in a property chain and how quickly you may be able to proceed.
How Long Does It Take to Get an Agreement in Principle?
An Agreement in Principle can sometimes be issued on the same day, although the timescale depends on the lender and the information required.
At Birminghammoneyman, we can usually obtain an AIP within 24 hours of your initial mortgage appointment.
If your circumstances are more complex or the lender needs additional information, the process may take longer.
For example, someone with multiple income sources, recent credit issues or unusual employment arrangements may need further checks before an AIP can be issued.
How Long Does an Agreement in Principle Last?
An Agreement in Principle typically remains valid for between 30 and 90 days, although the exact period depends on the lender.
If you haven’t found a suitable property before it expires, you can usually apply for another AIP.
The lender may need to review your financial information again and could carry out another credit check.
If your income, employment or financial commitments have changed, this could affect how much the lender is willing to offer.
Does an Agreement in Principle Guarantee a Mortgage?
No, receiving an Agreement in Principle doesn’t guarantee that you’ll be approved for a mortgage.
The lender makes its initial decision using the information available at the time, which may not include a detailed review of your supporting documents or the property.
When you submit your full mortgage application, the lender will normally check your income, expenditure, credit commitments and deposit evidence.
It will also arrange a mortgage valuation to assess whether the property is suitable security for the loan.
If the information provided during the full application differs from your initial AIP, or the property doesn’t meet the lender’s requirements, your application could be declined or the amount offered could change.
This is why it’s important to provide accurate information from the beginning and avoid taking on unnecessary new financial commitments while preparing to buy.
Can You Get an Agreement in Principle With Bad Credit?
You may still be able to get an Agreement in Principle if you have experienced credit problems, although your options will depend on the circumstances.
Mortgage lenders consider factors such as the type of credit issue, how recently it occurred, whether it has been resolved and your wider financial position.
For example, an older missed payment may be assessed differently from a recent default or county court judgement (CCJ).
Some lenders have stricter credit requirements than others, so having a low credit score doesn’t automatically mean that every lender will decline your application.
If you’ve experienced credit difficulties, it may be worth reviewing your credit report before applying and checking which lenders are more likely to consider your circumstances.
What Happens After You Get an Agreement in Principle?
Once you have your Agreement in Principle, you can continue searching for a property with a better indication of your borrowing potential.
When you find a suitable home and have an offer accepted, the next step is usually to submit a full mortgage application.
At this point, the lender will request further information and supporting documents, which may include payslips, bank statements, proof of your deposit and evidence of your employment or self-employed income.
The lender will also assess the property before deciding whether to issue a formal mortgage offer.
If your application is approved, your solicitor or conveyancer will continue the legal work needed before you exchange contracts and complete your purchase.
An Agreement in Principle is therefore an early stage of the mortgage process rather than the final approval.
Can a Mortgage Broker Help You Get an Agreement in Principle?
A mortgage broker in Birmingham can help you prepare for an Agreement in Principle by reviewing your financial circumstances and identifying suitable mortgage lenders.
At Birminghammoneyman, we’ll look at your income, deposit, existing commitments and property plans before comparing options through our panel of lenders.
We can explain what information you’ll need, help you apply for an AIP and talk you through the next steps once you’ve found a suitable property.
Whether you’re buying your first home or moving within Birmingham and the surrounding areas, you can arrange a free initial mortgage appointment with our team to discuss your options.
Date Last Edited: October 22, 2026
