What is an Agreement In Principle (AIP)?

 When it comes to property hunting, there’s no better feeling than finding the house of your dreams. Especially as a first–time buyer! However, before you can make an offer on a house, it’s best to have an Agreement in Principle (AIP).

What is an Agreement in Principle?

Also known as a ‘Decision in Principle’ (DIP), an Agreement in Principle is a certificate or statement from a lender that confirms they would, ‘in principle’, lend a prospective borrower a certain amount of money based on the information provided.

An Agreement in Principle can be submitted at any point during the house hunting process. However, most estate agents will encourage potential buyers to have an AIP prior to starting the process. This is because, an AIP will highlight your ability to afford to buy, which makes you look like a more attractive buyer. It will also provide added reassurance around your borrowing prospects.

It is worthwhile keeping in mind that Agreements in Principle can impact your credit file for a long period of time. Therefore, it’s better to research your options and seek expert Independent Financial advice from us when you are looking for a mortgage, we can help you find the best option for you.

After all, Agreement in Principle are not always guaranteed. Lenders may decide not to lend if your earnings or credit history look unfavourable, so it is key to seek advice from one of our expert mortgage advisers to ensure you have the best chance of getting the house of your dreams on the first instance.  

You may find that conditions of an AIP are only valid for a short period of time before rates or offers change. 

Financial Foresight

Buying a property is potentially one of the most expensive investments in your life, which is why it’s vital to seek expert Independent financial mortgage advice. Contact Financial Foresight today to get the best deal available to you. Our expert advisors will be more than happy to offer trusted mortgage advice. Give us a call on 028 9332 2822 or email us at