Credit slang for ‘you appear to meet the criteria, but we’ll have to check things out’. Not legally binding, so don’t rely on this until you have a full credit offer. An agreement in principle is an arrangement that a lender may make with a consumer before they formally take out a loans product. This kind of arrangement is often seen within the mortgage sector.
If you're looking to take out a mortgage then it can be difficult to know how much you can afford to spend on a property before you make your mortgage application. Whilst you should not commit to any other arrangements based on an agreement in principle, it does give you the relevant information you need and an informal commitment from the lender to allow you to borrow the money.
Specific details of the agreement will be subject to change or withdrawal if your circumstances change or you don't meet the lender's criteria.
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