Agreement in Principle
An Agreement in Principle is an indication from a lender of how much they may be willing to lend you.
1 min read Buying a Home
What it means
An Agreement in Principle is an indication from a lender of how much they may be willing to lend you. It's based on some initial financial information and isn't a guaranteed mortgage offer.
Example
A lender says they may lend up to £280,000 before you've chosen a property.
Why it matters
It helps you understand your budget before you start house hunting.
Many sellers feel more confident accepting offers from buyers who already have one.
Does an Agreement in Principle guarantee a mortgage?
No. You'll still need to complete the lender's full application and checks.