What is a Mortgage Agreement in Principle?

Featuring the latest news and statistics to help you fish through the jargon and understand the market.

Get in touch!

This field is for validation purposes and should be left unchanged.

Over 1000 5 Star Reviews on Google

Google reviews G

What is a Mortgage Agreement in Principle?

People shaking hands

What is an Agreement in Principle?

A mortgage Agreement in Principle is the first step you’ll take when applying for a mortgage. Agreements in principle are sometimes called Mortgage Promises or a Decision in Principle, and essentially provide you with an accurate estimate of how much you will be able to borrow when you apply for your full mortgage.

How can I apply for an Agreement in Principle?

Once you’ve decided to start your mortgage application, it’s relatively straightforward and quick to apply for your mortgage agreement in principle. Normally, the process takes around 15 minutes but you can streamline the whole process by gathering details of your income and outgoing payments through financial statements and any recent address updates prior to filling out the application process.

Speak to our team of green mortgage experts today about what documents and details you’ll need to provide your mortgage broker with when applying for an agreement in principle.

Is my Agreement in Principle confirmed?

Not quite. Although an agreement in principle gives you a good indication of what you might be able to borrow, this agreement is not a guarantee of this amount – and also isn’t a legally binding confirmation that you’ll get a mortgage offer. Once you’ve received your agreement in principle, you’ll still need to complete the full mortgage application process when you find a property that you want to buy.


Your mortgage agreement in principle is usually valid for up to 3 months – or 90 days – and your mortgage lender will be able to use this existing information to help build your full application. The agreement in principle should make things more straightforward but your lender will just need to confirm that your details are still correct and up to date. It’s important that you make them aware of any changes in your financial circumstances as the criteria for them lending you the agreed amount might be impacted by this.

What are the benefits of having a mortgage agreement in principle? 

Getting an agreement in principle is useful for a number of reasons. It gives you a good understanding of the size of mortgage loan you’ll be able to receive as well as proving that you can afford to buy a property. It helps you understand which properties you’re potentially able to buy, helping narrow your home search and therefore making the whole process smoother. Estate agents will often ask if you have a mortgage in principle, so it’s good to have it sorted nice and early. Having this agreement in place will also help you be taken more seriously by sellers, providing them with assurance that you’re serious about purchasing their property.


As a potential buyer, being granted an agreement in principle is also reassuring for you – especially if you’ve had issues in the past with your credit rating. This agreement is a big step in moving along the homeowner journey.

What’s the difference between an agreement in principle and a mortgage offer? 

The main difference between a mortgage agreement in principle and a full mortgage offer is that a mortgage in principle is agreed while you’re still on the hunt for a property, with a mortgage offer being supplied to you once you’ve been fully assessed and are ready to make an offer on a home.

The agreement in principle is a way of proving to mortgage lenders that you can afford to borrow enough to buy a property, even if this agreement isn’t quite a 100% confirmed deal. Your agreement in principle is really useful in getting you started on your home search but you’ll still need to officially apply for a mortgage once you’ve had an offer on your chosen property accepted. After successfully completing your full mortgage application, including passing all credit and other financial checks, you’ll then receive your official mortgage offer and can move on to the next exciting seps in the homeowner journey! Chat with one of our Gren mortgage experts today about any stage of the mortgage process.

Can you get a mortgage agreement in principle as a first-time buyer? 

Absolutely. Receiving a mortgage agreement in principle is arguably most useful when applied for as a first-time buyer as you won’t have funds from an existing property that you’re selling. Estate agents will often encourage you to apply for an agreement in principle as part of your application to reassure all parties involved that you’re a serious candidate interested in purchasing the property.

At Green, we have a team of passionate mortgage experts who are always happy to chat through any questions and queries you may have about any stage of the mortgage process, so reach out to them today and let us help you land a mortgage agreement in principle!

Latest News

What is a House Under Offer?

When you’re looking at buying your first house, or any house for that matter, you’ll come across many different terms and sayings that might become confusing or overwhelming. One of [...]
Read more

What is a Completion Date?

Your Completion date. The day where you finally get the keys handed over to you and you can officially call a property yours. We’re here to break down everything you [...]
Read more
Get in Touch

Contact us today for a free quote

Speak to us now on 01244 955 399 or request a callback from our team.

Get in touch!

This field is for validation purposes and should be left unchanged.

Go Green with Green Mortgages.

Our experienced advisors are always on hand to answer your queries, update you on your cases progress and assist you in any way we can.
Green Mortgages Footer Logo
Enjoy a greener financial future with Green Mortgages
Join Our Newsletter
Green Mortgages, All rights reserved. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Green UK Mortgages Ltd, trading as Green Mortgages, is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Conduct Authority. There may be a fee for mortgage advice, however the precise amount depends on your circumstances. As we are independent and whole of market our fee may vary will be relative to your circumstances. Green UK Mortgages Ltd is registered in England and Wales with company number 11357070. Registered Office: Cholmondeley House, Dee Hills Park, Chester, CH3 5AR. The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

Complaints Procedure     |     Cookies Policy     |     Data Protection