An agreement in principle (AIP), also called a mortgage in principle or decision in principle, does not usually cost anything. Most lenders and mortgage brokers, including The Mortgage Experts, provide one free of charge as a standard part of the house-buying process. It is typically valid for somewhere between thirty and ninety days, depending on the lender, so it is worth timing yours carefully rather than getting one too early.
Why an agreement in principle is normally free
An AIP is a soft-search assessment, not a full mortgage application. A lender runs a quick check against the information you provide - income, outgoings, deposit, and a soft credit search that does not affect your credit score - and gives you an indicative figure for what they might lend you. Because it is a preliminary check rather than full underwriting, lenders do not generally charge for it. It also works in their favour: it gets you engaged with their product before you have committed to anything.
When you arrange an AIP through a broker rather than going direct to a lender, the same principle usually applies. A broker's fee, where one is charged, is almost always for arranging the full mortgage application and seeing it through to completion, not for the agreement in principle stage on its own. If anyone asks you to pay specifically for an AIP with no further service attached, it is worth asking exactly what that payment covers before you hand any money over.
When a fee might appear
There are a few situations where cost can creep in, although none of them are universal:
- Some specialist or whole-of-market brokers charge a single fee that covers everything from the initial AIP through to mortgage completion, rather than breaking the cost down by stage. The AIP itself is not separately priced, but it is bundled into a fee you will pay regardless.
- If you ask for several agreements in principle from several lenders in a short space of time, this is unlikely to cost money directly, but repeated hard searches (as opposed to soft searches) can affect your credit file, so it is worth checking which type of search a lender is using before you apply.
- A handful of lenders ask for proof of ID or income before issuing an AIP rather than after, which is not a cost but can feel like more friction than a typical same-day, information-only check.
As a general rule, if you are being asked to pay money specifically to obtain an agreement in principle, that is not standard market practice in the UK, and it is worth getting a second opinion before proceeding.
How long does an agreement in principle last?
Most agreements in principle are valid for a period somewhere in the region of thirty to ninety days, with sixty to ninety days being a common illustrative range for many mainstream lenders. These figures vary by lender and are not fixed across the market, so treat any specific number as a guide rather than a guarantee for your own situation.
An AIP is not a guarantee of a mortgage offer. It is based on the information you have given and a limited check of your circumstances. The full mortgage application, which comes later, involves a hard credit search, full affordability underwriting, and verification of your documents, and this is the stage where the actual lending decision is made.
Why the expiry date matters
Timing your AIP well avoids two common problems:
- Getting one too early. If you arrange an AIP long before you are ready to view properties or make an offer, it may expire just as you need it, forcing you to renew it and potentially re-run a credit search unnecessarily.
- Relying on an expired one. Estate agents and sellers often ask to see evidence of an AIP before accepting an offer. If yours has lapsed, you may need a fresh one before your offer is taken seriously, which can cost you time at a critical moment.
A sensible approach is to get your agreement in principle arranged once you are genuinely close to looking at properties seriously, rather than at the very start of idle browsing.
Does an agreement in principle affect your credit score?
Most agreements in principle use a soft credit search, which leaves no visible mark that other lenders can see and does not affect your credit score. However, this is not universal. A small number of lenders use a hard search even at the AIP stage, which does leave a mark and can have a small, temporary impact on your score, particularly if you apply to several lenders in a short period.
This is one of the clearest reasons to go through a broker such as The Mortgage Experts rather than applying to multiple lenders yourself: a broker can usually tell you in advance which lenders use a soft search for their AIP, and steer you towards those options so you are not racking up unnecessary hard searches while you shop around.
What you will typically need to provide
To get an agreement in principle, you can generally expect to be asked for:
- Your name, date of birth and current address history, usually covering the last three years.
- Approximate annual income, and whether you are employed or self-employed.
- Your estimated deposit amount and the property price range you are considering.
- Basic information on existing debts, credit commitments and monthly outgoings.
Most of this can be provided over the phone or online within minutes, and many lenders will issue a decision in principle instantly or within the same day.
Frequently asked questions
Is an agreement in principle the same as a mortgage offer? No. An agreement in principle is an indicative, preliminary assessment based on limited information and a soft check. A mortgage offer is a formal, binding commitment from a lender, issued after full underwriting, document checks and a hard credit search on a specific property.
Can I get more than one agreement in principle at the same time? Yes, and many buyers do this while comparing lenders or brokers. Just be mindful of which lenders use soft versus hard credit searches, since multiple hard searches close together can affect your credit score.
Will my agreement in principle guarantee I get the mortgage? No. It is a useful early indicator, not a guarantee. Your final mortgage is still subject to full underwriting, a property valuation, and verification of your income and identity documents.
If you would like help arranging an agreement in principle, or want to make sure you are applying to the right lender for your circumstances, get in touch with The Mortgage Experts and we will talk you through the next steps.