Is a mortgage agreement in principle free?

Almost always, yes. Lenders and brokers do not usually charge for an agreement in principle because it costs them very little to produce and it starts a conversation. If a firm asks you to pay for one, ask exactly what the fee covers and whether it is refundable, then compare that against other brokers before agreeing.

Does an agreement in principle guarantee I will get the mortgage?

No. It is an indication based on unverified information, and it stays subject to full underwriting, verified income documents, a credit check and a property valuation. Lenders can and do withdraw at that stage, usually because of a downvaluation, undisclosed credit commitments, a change in employment, or bank statement entries the underwriter cannot explain.

What documents do I need for an agreement in principle?

Usually none at the application itself, because it relies on what you declare. You will need the information to hand: three years of address history, your gross income and any bonus or overtime, all monthly credit commitments, your deposit amount and its source, and the rough purchase price. Documents are requested later, at full application.

Can I get an agreement in principle before I find a property?

Yes, and that is the normal order. You supply an estimated purchase price rather than a specific address. Doing it before you start viewing tells you your realistic budget, means you can offer immediately when you find the right place, and gives estate agents the evidence they usually ask for before putting your offer to the seller.

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6 min read · Updated 30 August 2026

Mortgage Agreement in Principle: what it is and how to get one

What a mortgage agreement in principle is, what lenders check before issuing one, how to get one in about 15 minutes, and the limits of what it proves.

Written and reviewed by the MortgageMatch editorial team. How we research and review our guides.

A mortgage agreement in principle is a written statement from a lender saying roughly how much it would be willing to lend you, based on the information you have given and a check of your credit file. It is an indication, not an offer. It is normally free, often takes 15 minutes to obtain, and most estate agents want to see one before they will put your offer to a seller. It remains subject to full underwriting, verified income documents and a valuation of the property.

What an agreement in principle actually tells you

An agreement in principle answers one narrow question: on the figures you have declared, would this lender consider lending you this amount? It runs your declared income and commitments through the lender's affordability calculator, applies a stress rate to test whether you could still pay if rates rose, and checks your credit file for the sort of adverse history that would rule you out at the door.

What comes back is a number and a validity period. Some lenders also give you a reference number and a downloadable certificate you can forward to an agent. That is the whole product. It is not a promise, it is not binding on the lender, and the lender can withdraw it at any point before a formal offer is issued.

The figure is also a maximum, not a recommendation. Being told you could borrow 280,000 pounds does not mean borrowing 280,000 pounds is sensible for you. Affordability calculators do not know that you are planning to reduce your hours next year or that your car finance ends in three months.

Why estate agents ask to see one

Agents have a duty to pass every offer to the seller, but they also have to advise the seller on which offer is most likely to actually complete. An agreement in principle is the cheapest available evidence that a buyer has done some homework and is not going to fall over on affordability in week two.

In a competitive market, an offer with an agreement in principle attached is usually taken more seriously than one without. Some agents will refuse to progress an offer until you produce one. Others will ask you to speak to their in-house adviser, which you are never obliged to do. You can decline that and supply an agreement in principle obtained elsewhere.

What you need to hand before you apply

Getting one is quick if you gather the information first. You will typically be asked for:

Full name, date of birth and three years of address history with no gaps
Employment status, employer name, gross annual salary, and any regular bonus, commission or overtime
For self-employed applicants, the last two to three years of net profit or salary plus dividends
Monthly credit commitments: loans, credit cards, car finance, buy now pay later balances, student loan deductions
Number of dependants and any maintenance or childcare costs
Your deposit amount and where it is coming from
The estimated purchase price and property type

Accuracy matters more than speed here. If you round your salary up or forget a credit card, the number you get back is fiction, and the gap will surface later at exactly the moment it hurts most.

Soft search or hard search: always ask

Some lenders run a soft search at agreement in principle stage. A soft search is visible to you on your credit file but is not visible to other lenders and does not affect how they assess you. Other lenders run a hard search, which leaves a footprint other lenders can see.

Several hard searches in a short window can make a lender cautious, because the pattern looks like someone applying for credit everywhere. So ask before you press submit. The question is simply: is this a soft search or a hard search? Any decent broker or lender call centre will answer it straight away. If you cannot get a clear answer, treat it as a hard search and be selective.

This is why collecting agreements in principle from five lenders to compare is a bad idea. Get advice on which lender suits your circumstances, then get one agreement in principle from that lender.

How long it takes and what you get

Online applications are usually near instant, with a decision on screen in 10 to 20 minutes once you have your figures. Cases that the automated system cannot decide are referred to a human, which can take one to three working days.

The certificate you get back generally shows the lender name, the amount, the date of issue and an expiry date. Validity is commonly 30 to 90 days depending on the lender, and it can usually be renewed. We cover expiry and renewal in more detail separately, because the rules there deserve their own explanation.

What an agreement in principle does not do

This is the part that catches people out. An agreement in principle does not:

Verify your income. Nobody has seen a payslip yet.
Verify your deposit. The lender asks where it is coming from but does not check at this stage.
Value the property. You may not even have chosen one.
Commit the lender to anything. It can be withdrawn.
Secure an interest rate. Rates are attached at full application, not at this stage.

Because none of that has happened, a positive agreement in principle followed by a declined application is entirely possible. Common causes are a downvaluation, credit commitments the applicant did not declare, a change of job or contract type, and unexplained credits or gambling patterns on bank statements.

Through a broker or direct with a lender

Going direct to your own bank is fine if you already know its criteria suit you. The limitation is that a bank can only tell you what a bank will do. If you are employed with clean credit and a 20 percent deposit, that may be all you need.

A whole of market broker is more useful when something about your case is not standard: self-employment, contract work, bonus-heavy income, a recent default, a new build, a flat above a shop, or a shared ownership purchase. The broker matches your circumstances to a lender likely to say yes before any search is run, which usually means fewer footprints and fewer wasted weeks. Brokers may charge a fee, may be paid by lender commission, or both. Ask for the fee in writing before you engage them.

Common reasons an agreement in principle is declined

Being declined is not a verdict on you, it is a verdict on the fit between you and that lender's criteria. The frequent causes are a thin or missing credit file, being unregistered on the electoral roll at your current address, recent missed payments, high existing credit utilisation, a very short time in a new job, and income that the calculator will not fully count, such as unproven overtime.

Most of these are fixable. Registering on the electoral roll, clearing a card balance, or waiting until you have passed a probation period can move a case from declined to comfortable within a few months. What you should not do is immediately apply to another three lenders and hope.

If you would like an independent view before you apply, you can search the MortgageMatch directory for an FCA-authorised broker near you and compare their fee structures side by side.

Frequently asked questions

Is a mortgage agreement in principle free?: Almost always, yes. Lenders and brokers do not usually charge for an agreement in principle because it costs them very little to produce and it starts a conversation. If a firm asks you to pay for one, ask exactly what the fee covers and whether it is refundable, then compare that against other brokers before agreeing.
How long does it take to get an agreement in principle?: Most online applications give a decision in 10 to 20 minutes once you have your income, credit commitments and address history ready. Cases the automated system cannot decide are referred to an underwriter, which typically adds one to three working days. Self-employed and complex income cases are the ones most likely to be referred.
Does an agreement in principle guarantee I will get the mortgage?: No. It is an indication based on unverified information, and it stays subject to full underwriting, verified income documents, a credit check and a property valuation. Lenders can and do withdraw at that stage, usually because of a downvaluation, undisclosed credit commitments, a change in employment, or bank statement entries the underwriter cannot explain.
What documents do I need for an agreement in principle?: Usually none at the application itself, because it relies on what you declare. You will need the information to hand: three years of address history, your gross income and any bonus or overtime, all monthly credit commitments, your deposit amount and its source, and the rough purchase price. Documents are requested later, at full application.
Can I get an agreement in principle before I find a property?: Yes, and that is the normal order. You supply an estimated purchase price rather than a specific address. Doing it before you start viewing tells you your realistic budget, means you can offer immediately when you find the right place, and gives estate agents the evidence they usually ask for before putting your offer to the seller.

This guide is general information about how UK mortgages work, not a personal recommendation. Only an FCA-authorised adviser can recommend a product for your circumstances. Tax and scheme rules change, so check the relevant government source before you budget.

Mortgage application documents: the full checklistEvery document a UK lender is likely to ask for, covering employed, self-employed and contractor income, deposit evidence, identity, gifted deposits, buy to let and new build, plus how to avoid delays.
Joint mortgages: what to know before you signJoint tenants versus tenants in common, declarations of trust, protecting unequal deposits, how two incomes are assessed, removing someone from a mortgage later, and how JBSP arrangements work.
How long does a mortgage agreement in principle last?How long agreements in principle stay valid, how to check your expiry date, what happens if yours lapses mid-purchase, and whether renewing triggers another credit search.