Agreement in Principle Explained

An Agreement in Principle (AIP), also known as a ‘Decision in Principle’ (DIP) or ‘Mortgage Promise’, is useful if you haven’t found a property you want to buy but would like to know how much you could borrow. All we need is a few personal details about you and anyone else who will be named on the mortgage. Then we’ll contact a credit reference agency for a credit search and give you a credit score. If you reach the pass mark, we’ll give you a certificate, so that you can show the seller you can get a loan. An Agreement in Principle is subject to us performing a number of additional checks and so is not a guarantee a lender will be able to lend you the money, for this you need a mortgage offer.

Once you have an offer accepted on a property, you’ll need to complete a full mortgage application to confirm how much you could borrow.

Once you’ve got your AIP, you can apply for a mortgage straight away.

A mortgage offer is issued by a lender once your mortgage application has been received and the necessary checks, such as the property valuation and confirmation of your details, have been carried out. It sets out the terms under which the lender is prepared to offer you a loan.

What you need ready

It’ll help us give you the right decision, first time.

  • the exact details of your income
  • details of your outgoings
  • your addresses for the last 3 years
It won’t touch your credit score

That’s right. With an AIP, most lenders will only do a soft credit check which won’t change your credit score.

Other things to know
Anything we agree is based on you applying for a mortgage, where we’ll check details like your income and credit score.

You’re not committing to anything at this stage – you’re not tied to a particular type of deal if you decide to apply for a mortgage with us. Just remember that an AiP isn’t a guarantee a bank will lend to you.

We don’t tend to publish mortgage rates on our website. In most cases rates are negotiable and based squarely on the individual circumstances of the borrower, their plans, assets and income.

Firco is an independent mortgage broker that has strong relationships with the key lenders in the UK mortgage market, including those private banks who do not have a high-street presence. We arrange bespoke mortgage solutions for our clients, providing a tailored one-to-one advisory service, delivered face-to-face or remotely, depending on what suits you.

Please click on ‘Become a Client, Enquire Now’ at the bottom of the page and complete the enquiry form and we will normally contact you within the same working day during business hours or if you would prefer us to contact you outside normal business hours then please advise and we will quite happily do so. Alternatively you can email us with details about your requirements to or call us on 0151 372 0388

The above article is purely for information purposes and does not constitute advice.

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