Agreement in principle
Last checked UK · illustrative onlyNot a lender or brokerAboutDisclaimer
Published by Rodway Labs — not a mortgage adviser
Published · Last revised
Agreement in principle: A lender’s early indication of what it might lend, based on the information you give. It is not an offer and not a guarantee.
It may also be called a decision in principle or a mortgage promise. It usually involves a credit check, which may be a soft or a hard search, so ask which. Valuation, documents and full underwriting come later.
In the UK an agreement in principle usually lasts 30 to 90 days, depending on the lender. Some lenders run a soft credit search that other lenders can’t see, and others run a hard search that shows on your file. Ask which one before you apply.
Example: an income-multiple sketch is not an agreement
- Amount to remortgage
- £185,000 over 22 years
- Income multiple in the site sketch
- 4.5× (the calculator’s default, not a lender rule)
- Income at which £185,000 fits that sketch
- about £41,111
- Payment at 5.97%
- about £1,260 a month
- Payment at the tool’s 3-point stress buffer (8.97%)
- about £1,608 a month
Our affordability calculator gives a figure like this in seconds. It does not search your credit file, see your commitments in detail or apply any lender’s policy. An agreement in principle is the lender’s own view, and even that can change.
How it affects a remortgage
If you are moving to a new lender, an agreement in principle is an early check that the deal is realistic before you pay a valuation or legal fee. A product transfer with your existing lender often does not need one.
It is not an offer. A remortgage can still fail later, for example if the valuation comes in lower and the loan to value moves into a higher band, or when documents are checked.
An agreement in principle can also expire after a period the lender states. If your remortgage is planned around a deal end date, check it will still be valid when you apply.
Ask whether the search is soft or hard, and avoid making applications you do not need.
Example: fitting the paperwork to a deal end date
- Six months before the fix ends
- MoneyHelper suggests starting to look around now
- Agreement in principle
- typically valid 30 to 90 days
- Full offer
- usually valid for several months; the FCA says three to six months is typical
- Example outcome
- an offer obtained 4 months early can still be live when the 2% ERC (£3,700) falls away
Illustrative only. Validity periods are set by each lender and printed on the document.
Common mistakes
- Treating it as an offer. MoneyHelper is clear it is not; the lender can still decline, including because of the property.
- Getting several in a short time without asking how they search. Some use soft checks, others hard checks that show on your file.
- Letting it expire before applying. Check the date against your timeline.
- Assuming it is always free. Lenders usually do not charge, but MoneyHelper notes some brokers might.
- Lining it up too late. The FCA notes a full offer normally stands for between 3 and 6 months, so there is room to apply well before the deal ends rather than in the last few weeks.
Edge cases
- Product transfers. Same-lender switches often do not need one.
- Changes in circumstances. A change in income or new credit between the agreement and the application can change the answer.
- Valuation. The agreement is given before the lender values the home; a lower valuation can change the LTV band.
- The property itself. MoneyHelper notes a lender can refuse on the property even when your finances are fine, for example a home without a working kitchen or bathroom.
Where to go next
- Affordability calculator — the income-multiple sketch.
- Credit and affordability when switching — what lenders tend to check.
- Remortgage documents checklist — what to have ready after the agreement.
Sources checked 2 November 2026
- MoneyHelper: what happens when I get a mortgage in principle? — typical 30 to 90 day validity, soft or hard credit checks, and why an offer can still be refused.
- MoneyHelper: remortgaging to cut costs — remortgage and product transfer definitions, switching costs, LTV formula, valuations, porting and negative equity.
- FCA: support with mortgages and interest rates — offers typically valid 3 to 6 months, reversion rates, same-lender switches, ERCs and stress testing.
Figures marked example are illustrative only, not a quote and not lender, broker or FCA-regulated advice. Definitions are plain English for this site, not the wording in your offer. The definitions and explanations are in our own words. Last checked 2 November 2026.