What is an Agreement in Principle? Hampshire Mortgage Guide

An agreement in principle (AIP) — also called a decision in principle (DIP) or mortgage in principle — is a written statement from a lender confirming they would in principle lend you a specific amount, subject to full application and satisfactory survey. It is not a mortgage offer and does not bind the lender. But it is the starting point for every property purchase in Hampshire and Surrey and many estate agents will not accept offers without one.

What Does an AIP Tell You?

An AIP confirms: the lender’s maximum loan based on your income and outgoings; that your credit profile passes initial assessment; and that you are a credible buyer at the price range stated. It gives you confidence when making offers, and gives sellers confidence that you have mortgage backing. It does not confirm the specific property is suitable for lending — that happens at survey stage.

How Long Does an AIP Take?

With us: 20–60 minutes by phone. We discuss your income, outgoings and deposit, run a soft credit search, confirm the maximum, and issue the AIP document the same day. You can then use it immediately when viewing and offering on Hampshire and Surrey properties.

Does an AIP Affect My Credit Score?

That depends on whether the lender uses a soft search or a hard search for the AIP. A soft search leaves no visible trace on your credit file and does not affect your score. A hard search leaves a record visible to other lenders and can affect applications if multiple hard searches are recorded in a short period. We use soft-search AIPs at this stage — no impact on your credit score until you proceed to full application with a specific lender.

How Long is an AIP Valid?

Typically 60–90 days. If your AIP expires before you find a property, we refresh it. If your circumstances change significantly (new job, change in income, large new credit commitment) we update the AIP before you make any offer.

Do Hampshire and Surrey Estate Agents Require an AIP?

Most do, particularly in competitive markets. Fleet, Farnham, Guildford and Winchester estate agents regularly require an AIP as a condition of accepting offers. In slower markets it is less enforced but always helpful. Having an AIP in hand when viewing properties demonstrates you are a committed buyer and can sometimes influence an accepted offer in your favour over a buyer who needs to arrange finance first.

AIP vs Mortgage Offer: The Difference

An AIP is a preliminary indication. A mortgage offer is a legally binding document issued after full application, income verification, credit check and property survey. The mortgage offer is what your solicitor uses to exchange contracts. The AIP is what you use to make offers on properties before exchange.

Get Your AIP Today

Call 01252 111 000 — we issue same-day AIPs with soft credit search only. No broker fee.

AIP in Competitive Hampshire and Surrey Markets

In competitive Hampshire and Surrey markets — Fleet, Farnham, Winchester, Guildford — an AIP is increasingly a prerequisite for offer acceptance, not just a best practice. Estate agents in these markets typically receive 5–15 competing offers on desirable properties and routinely ask all buyers to confirm mortgage status before a vendor will consider an offer. An AIP dated within the last 30 days from a recognised lender carries more weight than one issued 6 weeks ago, and a buyer who calls having just received a same-day AIP is demonstrably more ready to proceed than one who has not yet started the mortgage process.

When an AIP Expires

If your property search takes longer than 60–90 days (common in competitive Hampshire and Surrey markets), your AIP will need refreshing. A refreshed AIP requires a new soft search and confirmation that your circumstances have not changed materially. If your income, employment or credit position has changed since the original AIP, the refreshed AIP may show a different maximum. We manage the AIP refresh process proactively — contacting you before expiry rather than waiting for you to find the AIP has lapsed at the point of making an offer.

FAQ

Questions

No. An AIP confirms initial credit assessment and income calculation. The full offer requires verified documents, a property survey and formal underwriting. Most AIPs do lead to offers — provided the documents match what was stated.

Yes. It confirms your budget clearly, prevents wasted viewings at unrealistic prices, and means you can make an offer immediately if you find the right property.

You can, but multiple hard searches in a short period affect your credit score. With us you get one soft-search AIP from the most suitable lender — not multiple hard searches from lenders who may not be right for your profile.

The AIP confirms a maximum. You can use it for any property up to that value. Buying below your AIP maximum is common — the mortgage is structured around the actual purchase price, not the AIP maximum.

We review the income and expenditure to confirm the calculation is correct. Sometimes the maximum can be increased with a different lender or approach — particularly for self-employed buyers or contractors.

No. AIPs are free and there is no broker fee at any stage.

Call us on 01252 111 000. We complete the income assessment by phone, run the soft search and issue the document same day.