Agreement in Principle (Agreement to Lend) – Why do I need one?

An AIP (agreement in principle) will allow you to make an offer on a property with confidence that the mortgage is likely to be agreed subject to a full application. This shows developers, estate agents and vendors that you are a serious buyer.

Your chosen lender will carry out a credit search to assess your affordability based on the
information you provide to them about your current financial situation, income and the information found on your credit file.

Your lender will then supply us with an agreement in principle certificate with confirmation of how much they are willing to lend you.

Should any of the following details change after the agreement in principle is offered, they may not be able to lend you what was originally agreed in your AIP:

  • Negative changes to your credit file
  • A reduction in your income or ability to provide sufficient proof of income
  • Other changes in your circumstances that could affect your ability to re-pay the loan amount