An Agreement in Principle (AIP) is the first step to getting a mortgage. Also known as a Mortgage Promise or a Decision in Principle, it lets you know how much you could borrow before you apply for a mortgage.
As well as letting you know how much you could borrow, you’ll also get an idea of how much you can afford to spend on your new home. That means you can start looking at properties in your price range.
It can also help you to agree a better price with the seller, because it shows you’re a serious buyer who can get a mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.