In the mortgage world, terminology can be confusing. Two terms you'll hear constantly are 'Agreement in Principle' and 'Mortgage Offer'. While they sound similar, they represent very different stages of your journey.
Agreement in Principle
(Also known as a Decision in Principle or AIP/DIP)
- Obtained before you find a property.
- Based on a preliminary credit check and basic info.
- Valid for 30-90 days usually.
- Shows estate agents you are a serious buyer.
Mortgage Offer
(The formal commitment from the lender)
- Issued after your offer is accepted.
- Based on a full underwritten application.
- Includes a formal property valuation.
- The final step before legal completion.
Why You Need an AIP First
In the fast-paced 2026 property market, most estate agents won't even let you view a property without an Agreement in Principle. It gives everyone confidence that you can actually afford the property you're offering on. It's not a guarantee of a mortgage, but it's a very strong indicator.
The Transition to a Formal Offer
Once your offer is accepted, we'll convert your AIP into a full application. This is where the lender does their 'deep dive'. They'll verify your payslips, bank statements, and conduct a valuation of the property you're buying. If everything checks out, they'll issue the formal Mortgage Offer.
Important Note
A Mortgage Offer is usually valid for 3 to 6 months. If your property purchase takes longer than this (common with new builds), we may need to apply for an extension or a new offer.