Why Getting an Agreement in Principle Is One of the Smartest First Steps for First-Time Buyers

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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:

  • How much you could potentially borrow

  • That a lender is willing to consider you

  • 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:

  • Avoid falling in love with a property that’s out of reach

  • Focus on homes you can realistically afford

  • 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:

  • Shows you’re financially ready

  • Strengthens your offer

  • Can make the difference if there are multiple buyers

✅ 3. It Can Highlight Issues Early

Things like:

  • Previous credit blips

  • Missed payments

  • Self-employed income

  • 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:

  • Less scrambling for paperwork

  • Faster applications

  • Fewer surprises

Is an Agreement in Principle a Credit Check?

Usually, lenders carry out a soft credit check, which:

  • Does not affect your credit score

  • 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:

  • First-time buyers

  • Low deposits

  • Previous credit issues

  • Self-employed or variable income

🌳 We Check Your Case Before Applying

We look at:

  • Income and affordability

  • Credit history

  • Bank statements (if needed)

  • 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:

  • Explain what you need to improve

  • Help you prepare for the best rates

  • 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:

  • Confidence

  • Clarity

  • 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.

Clever Mortgages is now part of Oak Mortgages Limited.

Don’t worry, you’ll still be looked after by the same friendly, experienced team you know and trust. We’re here to guide you every step of the way on your mortgage journey.

👉 Discover more about us at www.oakmortgages.co.uk or see what our happy clients are saying on Google Reviews.

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G S
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From the very first contact through (what was a complex and hugely frustrating conveyancing process), to the day of completion, Oak Mortgages were the shining light that got us through. Sarah and her team were brilliant. They were responsive, caring, empathetic, knowledgeable, professional, and human at each and every stage. We are so grateful that we used Sarah and Oak Mortgages and highly recommend them to anyone wanting to guarantee that authentic, trustworthy approach from professionals who care. A top class act - 5 ⭐️⭐️⭐️⭐️⭐️
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DOBO and the Foodies
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Awesome service, helped me at every step on a journey I never thought at 50 I could make! Sarah is amazing available whenever I needed her highly recommend
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Caoimhe Clarke
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Thank you to Abby and the admin team at Oak Mortgages who have been fantastic in helping me secure a remortgage on my property. From my first phone call to Abby I was filled with confidence and the experience with the team was brilliant, especially when other companies involved were not so brilliant the Oak Mortgage team pulled out all the stops to make sure completion happened. I would highly recommend this company and will use their services in the future. Thank you again.
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Lisa Zuccotti
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Excellent company to deal with , very efficient and caring ensured all our needs where met . Highly recommended.
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Reece Baird
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claire.geraghty Amazing lady, helped me all the way to the finish line! Highly recommend!
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graham draper
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Excellent service and advice throughout the whole process making for a very straightforward experience with special thanks to Abby and Ashleigh.
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Ant
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Alex at Oak Mortgages has been an absolute life-saver. After being let down by a previous mortgage advisor who wanted me to take a massive risk with no guarantees, I contacted Oak Mortgages and was put in touch with Alex. ​Not only did he find me a mortgage with the exact same lender without having to take that risk, but he also got me accepted! His knowledge is top-notch, his communication is brilliant—he always picked up the phone and replied to emails super fast with regular updates. As a first-time buyer, Alex was hands-down the best part of the entire buying process. ​I am now happily settled in my new home, and I have Alex to thank for it. I will 100% be using Oak Mortgages again in the future (and hopefully Alex!). Thank you so much!
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Alannah McNaughton
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Abby Malcolm was fantastic. Work quickly to find me a great rate and explained everything I needed to know. Highly recommend her :)
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DanielaDany Zavaliche
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They are a very good and friendly team. I am very proud of them. Well done!
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