READER QUESTION

Q I’m researching mortgages at the moment; what is an Agreement in Principle?

A This is also known as a Mortgage Promise, a Mortgage in Principle or Decision in Principle. It is a document from a lender stating that it would lend you a certain amount ‘in principle’, based on information you’ve provided, like your income and outgoings. It can be useful to show to estate agents when you’re house-hunting, but it’s important to remember that this document isn’t a mortgage offer.