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VIBEMortgages
The Vibe Guide
First-time buyers3 min readUpdated 1 June 2026

What is an Agreement in Principle?

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An Agreement in Principle (AIP) — sometimes called a Decision in Principle — is an indication from a lender of how much they might be willing to lend, based on an initial assessment of your circumstances.

It's not a guaranteed mortgage offer. A full application, valuation and underwriting still need to happen once you've had an offer accepted on a property.

Having an AIP in place before you start viewing shows estate agents and sellers that you're in a serious position to proceed.

Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgage availability, eligibility and the mortgage options presented depend on individual circumstances and lender criteria.

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