If you’re thinking about buying your first home, you’ve probably heard the term Agreement in Principle (often shortened to AIP or DIP) but what is it, and do you really need one?
Short answer: yes.
Long answer: getting an Agreement in Principle can save you time, stress, and disappointment and it puts you in a much stronger position when you’re ready to make an offer.
Here’s everything you need to know 👇
What Is an Agreement in Principle?
An Agreement in Principle is a statement from a mortgage lender confirming how much they may be willing to lend you, based on some initial information about your income, outgoings, and credit profile.
It’s not a full mortgage offer, but it shows:
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How much you could potentially borrow
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That a lender is willing to consider you
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That you’re a serious and prepared buyer
Most estate agents will ask if you have one before accepting an offer.
Why Is an Agreement in Principle So Important?
✅ 1. You Know What You Can Afford
One of the biggest mistakes first-time buyers make is house-hunting without knowing their budget.
An AIP helps you:
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Avoid falling in love with a property that’s out of reach
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Focus on homes you can realistically afford
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Understand likely monthly repayments early on
✅ 2. You Look More Serious to Sellers
In a competitive market, sellers want reassurance that buyers can proceed.
Having an AIP:
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Shows you’re financially ready
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Strengthens your offer
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Can make the difference if there are multiple buyers
✅ 3. It Can Highlight Issues Early
Things like:
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Previous credit blips
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Missed payments
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Self-employed income
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Student loans or childcare costs
An Agreement in Principle can flag potential issues before you’ve paid for surveys or solicitors giving you time to address them properly.
✅ 4. It Speeds Things Up Later
Once your offer is accepted, you’re already part-way through the mortgage process, which means:
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Less scrambling for paperwork
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Faster applications
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Fewer surprises
Is an Agreement in Principle a Credit Check?
Usually, lenders carry out a soft credit check, which:
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Does not affect your credit score
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Is not visible to other lenders
At Oak and Clever, we’re careful about who we approach and when, so you’re not applying unnecessarily.
How Oak Mortgages Helps You Get the Right Agreement in Principle
Not all Agreements in Principle are created equal.
At Oak and Clever Mortgages, we don’t just press a button we take time to understand you.
🌳 A Whole-of-Market Approach
We assess your situation and match you with lenders that suit:
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First-time buyers
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Low deposits
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Previous credit issues
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Self-employed or variable income
🌳 We Check Your Case Before Applying
We look at:
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Income and affordability
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Credit history
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Bank statements (if needed)
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Deposit sources
This reduces the risk of declines and wasted applications.
🌳 Support Now — and Later
Even if you’re not quite ready yet, we can:
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Explain what you need to improve
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Help you prepare for the best rates
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Guide you step-by-step until you’re ready to buy
We don’t just help you now we help you move forward.
When Should You Get an Agreement in Principle?
✔️ Before booking property viewings
✔️ Before making an offer
✔️ If you’re planning to buy in the next 3–6 months
An AIP usually lasts 30–90 days and can be refreshed as needed.
Ready to Take the First Step?
Buying your first home can feel overwhelming — but it doesn’t have to be.
An Agreement in Principle gives you:
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Confidence
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Clarity
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A clear starting point
📞 Get in touch with Oak Mortgages today for a free, no-obligation Agreement in Principle and expert advice tailored to you.
We’ll help you understand what’s possible and how to get there.