Agreement in principle mortgage: How to choose a fee-free broker in the UK 

You are ready to start viewing homes and an estate agent asks whether you have an agreement in principle. It can sound more final than it really is. An agreement in principle mortgage is not a mortgage offer, but it can give you a realistic borrowing indication and show that you have started checking your finances. 

A good fee-free broker in the UK can match your circumstances to lender criteria and explain what the AIP does and does not mean. 

Have questions? Contact our team on 020 8528 2251. 

What does a UK mortgage agreement in principle tell you? 

An agreement in principle (AIP), also called a decision in principle or mortgage in principle, is an estimate of what a lender may be prepared to lend based on initial information. It is not a formal mortgage offer and is typically valid for 30 to 90 days. 

Your eventual mortgage still depends on a full application, affordability and credit checks, supporting documents, the property valuation, and the lender’s criteria at the time. Think of an AIP as an early checkpoint, not a promise. 

For many buyers, a mortgage AIP helps set a sensible property budget and may reassure an estate agent or seller that you have started the finance process. If you would like another pair of eyes on your options, our independent mortgage advisers can help you consider suitable lenders before you commit to a full application. 

Why can a fee-free broker still be valuable? 

“Fee-free” should mean you do not pay the broker an advice or arrangement fee for the relevant service. It does not mean the mortgage itself has no costs, and it does not automatically make one broker better than another. Mortgage advisers may instead receive commission from a lender, and their charging arrangements should be explained to you. 

We offer fee-free advice on traditional mortgages and whole-of-market advice, giving us scope to consider suitable options beyond a single lender. 

 “A useful AIP is not simply the biggest number a lender will show you. It is a borrowing indication that makes sense for your circumstances and gives you a sound starting point for your property search.”

How do you choose the right fee-free mortgage broker? 

A broker should make the process clearer, not simply produce an AIP quickly. Focus on regulation, access, and transparency. 

Check regulation and market access 

For regulated mortgage advice, check that the firm is FCA authorised or an appointed representative with the relevant permissions. The FCA provides a Firm Checker for this purpose. 

Ask how broadly the broker can search too, especially if your income, credit history, deposit, or property type is less straightforward. 

Ask how the broker is paid 

A fee-free broker may receive commission from the lender when a mortgage completes. Ask whether any part of your case attracts a fee. This avoids confusing a no-broker-fee service with a no-fee mortgage product, which may still have lender, valuation, legal, or product costs. 

Look beyond speed 

A fast AIP is useful, but suitability matters more. A broker should understand your circumstances before suggesting a lender. 

What should you check before requesting an AIP? 

Have accurate figures ready for your income, deposit, spending, and existing credit commitments. If you are self-employed or have variable income, explain that early. 

Ask what type of credit search the lender uses, because processes vary. If your circumstances change, tell your adviser before moving to a full application. 

People looking for a decision in principle explanation are often trying to answer the same question: how certain is the decision? The answer is that it remains provisional. 

When you move further into buying a home, the lender will still need to assess the full case. 

Choose the broker, not just the fee 

A fee-free broker can be a strong option when the service is regulated, transparent, broad enough to compare suitable lenders, and attentive to your circumstances. The right AIP should help you search with a realistic budget while leaving room to reassess the market before a full application. 

Ready to discuss your borrowing position? 

If you would like help working out which lenders may suit your circumstances before you apply, get in touch. Conran Mortgages is a trading style of Charles Conran Financial Services Ltd, FCA authorised and regulated under Financial Services Register number 312764. 

Call us on 020 8528 2251 or email hello@conranmortgages.co.uk for a straightforward conversation about your options. 

Frequently asked questions 

Does an agreement in principle guarantee a mortgage? 

No. It is an initial indication only. A full offer depends on the lender completing its checks and accepting both you and the property. 

Does an AIP affect my credit score? 

It depends on the lender. Some use a soft credit search and others may use a hard search, so ask before the check. 

How long does an agreement in principle last? 

Usually around 30 to 90 days, although the exact period depends on the lender. If it expires, you may need an updated assessment. 

Can I get more than one agreement in principle? 

Yes, but avoid unnecessary repeated applications. A broker can help narrow down suitable lenders before checks are made. 

Is a fee-free mortgage broker really free? 

It can be free to you for broker advice and arrangement while the broker is paid by the lender. Always ask whether exceptions or specialist-case fees apply.