Getting an agreement in principle (AIP) is often one of the first steps you’ll take when preparing to buy a home.

It gives you an indication of how much a mortgage lender may be prepared to lend before you begin viewing properties, helping you search with a realistic budget in mind.

You may also hear it referred to as a mortgage in principle (MIP) or decision in principle (DIP). Although the names vary between lenders, they all describe the same stage of the mortgage process.

While an agreement in principle isn’t a guarantee that your mortgage will be approved, it can demonstrate to estate agents and sellers that you’ve already spoken to a lender and are in a position to proceed.

If you’re buying your first home in Manchester, arranging an agreement in principle before you start viewing properties can save time later in the process.

Why Should You Get an Agreement in Principle?

Knowing your budget from the outset can help you avoid viewing homes outside your price range and make it easier to narrow your search.

Many estate agents will also ask whether you already have an agreement in principle before accepting an offer.

Having one in place shows you’ve already taken the first steps towards securing a mortgage and can make you a stronger buyer when competing with others for the same property.

How Do You Get an Agreement in Principle?

Applying for an agreement in principle is usually a straightforward process.

Your lender or mortgage advisor will ask for some basic information about your finances, including your income, regular outgoings, and any existing financial commitments.

They’ll then carry out an initial assessment to estimate how much they may be prepared to lend.

At Manchestermoneyman, we’ll usually be able to arrange your agreement in principle within 24 hours of your mortgage appointment, provided we’ve received the information needed to assess your application.

What Information Will You Need?

Although an agreement in principle is quicker than a full mortgage application, you’ll still need to provide enough information for a lender to carry out an initial assessment.

This will usually include:

  • Your income.
  • Your employment details.
  • Your regular monthly commitments.
  • Existing loans or credit cards.
  • Your address history.
  • The amount you'd like to borrow.
  • The size of your deposit.

Does an Agreement in Principle Guarantee You’ll Get a Mortgage?

No, an agreement in principle is based on the information available when you apply.

Before issuing a formal mortgage offer, your lender will still carry out a full affordability assessment, review your supporting documents, and arrange a valuation of the property you’re buying.

Changes to your income, financial commitments or credit history after receiving an agreement in principle could also affect your full mortgage application.

Does an Agreement in Principle Affect Your Credit Score?

This depends on the lender.

Some lenders carry out a soft credit search, which won’t affect your credit score or leave a visible footprint for other lenders.

Others use a hard credit search, which will appear on your credit report.

If you’re unsure which type of search will be carried out, it’s worth checking before you apply. We’ve also explained how your credit history can affect your mortgage application.

How Long Does an Agreement in Principle Last?

Most agreements in principle remain valid for between 30 and 90 days, although this varies from lender to lender.

If it expires before you’ve found a property, you can usually apply for another one through our team.

We may review your circumstances again to make sure the information they hold is still accurate.

What Happens After You Receive an Agreement in Principle?

Once you have your agreement in principle, you’re ready to begin viewing properties within your budget.

If you find a home you’d like to buy, the next step is making an offer.

Once your offer has been accepted, you’ll move on to your full mortgage application, where your lender will carry out more detailed checks before issuing a formal mortgage offer.

Can You Be Declined for an Agreement in Principle?

Yes, it’s possible to be declined for an agreement in principle if you don’t currently meet a lender’s criteria.

This could be due to your affordability, credit history, recent CCJs, missed payments or other financial commitments.

Every lender assesses applications differently, so being declined by one doesn’t necessarily mean you’ll be declined by another.

Getting Ready to Buy a Home

Buying a home starts long before you submit a full mortgage application, and arranging an agreement in principle is often one of the best places to begin.

If you’re planning to buy a home in Manchester, our mortgage advisors can explain how much you may be able to borrow, answer any questions you have about the mortgage process, and, in most cases, arrange your agreement in principle within 24 hours of your mortgage appointment so you’re ready to start viewing properties.

Date Last Edited: September 2, 2026