Agreement In Principle

Agreement in Principle or Decision In Principle? Either way it’s a certificate that confirms the lender has provisional agreed to grant you a mortgage, after an affordability assessment and or a credit check. This is normally without any documentation being assessed by the underwriters.

Also, a big part of any mortgage application is the survey / valuation report. The AIP / DIP is exactly that “in principle”.

It doesn’t always give any security in terms of the mortgage interest rate but will provide the seller, the estate agent and yourself a bit of peace of mind that a mortgage of that amount may be available to you.

Confused? Check out our Mythbusting section here.