An Agreement in Principle (AIP) is sometimes known as a ‘Mortgage in Principle’, a ‘Decision in Principle’ or a ‘mortgage promise’. It gives you an understanding of how much you may be able to borrow towards the purchase or remortgage of a property.

It’s a document that you can use with an estate agent, or those selling a property, to show that you may be in a financial position to purchase it.

  • An AIP is not a guarantee you will get a mortgage.
  • It is useful to have an AIP when you are viewing properties with an intention to buy.
  • It provides an estate agent with confidence that you maybe in a financial position to purchase a property.
  • If your circumstances change, you can get an updated AIP.
  • An AIP will not affect your credit score, providing you use the right lender.