The short answer
An agreement in principle (AIP), sometimes called a decision in principle, is a lender's early indication that it is willing to lend on a deal, based on the details you give. It is not a formal offer. The loan is still subject to valuation, legal work and final underwriting.
Why it helps
It shows a seller, an auctioneer or your solicitor that finance is being arranged, and it tells you early whether the deal can work. That matters when a deadline, such as the 28 days after an auction, is close.
What we usually need
- The property address, and the price or your estimate of its value
- How much you want to borrow and what it is for
- Your exit plan and roughly when
- Who is borrowing, you personally or a company
What it does not mean
It is not a guarantee of a loan. Terms can change after the valuation, after the legal checks or if the details change. Whether a lender makes any credit check at this stage varies, and we tell you before any search is made.
What happens next
If you decide to proceed, we agree the loan structure, the lender instructs the valuation and the legal work runs alongside it, and then the loan completes. Timing depends on the valuation, the legal work and how quickly the information is provided.
What to do next
Start with the deal checker, or ask us for an agreement in principle on your case. If you are buying at auction, see our auction finance page and the auction calendar.
Check your deal in 2 minutesLoan to value, indicative cost and what a lender will ask. No credit search.
Open the deal checkerCommon questions
Is an agreement in principle a loan offer?
No. It is an early indication based on the details you give. The loan stays subject to valuation, legal work and final underwriting.
Is an agreement in principle the same as a decision in principle?
The two terms are often used for the same thing. Lenders use different names, so we explain what each document means for your case.
Will an agreement in principle involve a credit search?
That depends on the lender, and we tell you before any credit search is made.
Important: This article is general information, not personal advice. Lender policies and criteria change; speak to an adviser about your circumstances. Bridging loans are short term, secured borrowing and can be expensive, so you need a clear and realistic exit plan. Commercial mortgages, most business finance and some bridging loans are not regulated by the FCA. Your home may be repossessed if you do not keep up repayments on your mortgage.