Approval in principle is a starting figure, not money ready to spend. It tells you what a lender may lend; a mortgage offer concerns a fuller application and a particular property. That distinction matters when an agent asks for evidence of funds or you are deciding whether to increase a bid.
In Ireland the usual phrase is approval in principle. UK readers also encounter agreement in principle and decision in principle. Similar initials do not make the documents interchangeable across lenders or countries.
Which document have you actually received?
Read the heading, conditions and expiry date before relying on the amount. Does the document say your supporting evidence has been assessed, identify a property, or list checks still outstanding? A reassuring email subject is less useful than those details.
| Document | Useful for | Question to ask |
|---|---|---|
| Approval or agreement in principle | Setting an initial search budget | What evidence and checks remain? |
| Formal mortgage offer | Reviewing the proposed loan for a named property | Which conditions must be satisfied before funds are released? |
| Drawdown confirmation | Coordinating the release of mortgage funds | Has the lender confirmed the funds and timing with my solicitor? |
Ireland: from an indicative amount to a loan offer
The CCPC describes two assessment stages: initial approval in principle, followed by further financial and property checks before full approval. A letter of offer comes later in that process. It is therefore worth asking your lender which stage your own application has reached, rather than treating every approval letter as equivalent.
Expiry also needs a date in your diary. The CCPC describes an Irish approval period typically ranging from six to twelve months, depending on the lender. Use the actual date and renewal requirements on your document; that general range is not an extension of your own approval.
For the wider application file, use the Irish first-time buyer mortgage checklist. It serves a different purpose from the approval letter: organising what you need to provide.
UK: check the expiry and credit-search method
MoneyHelper describes a UK mortgage in principle as an estimate, commonly valid for 30–90 days. It also explains that credit-check methods vary between lenders. Ask whether the particular application involves a soft or hard search instead of assuming every AIP leaves the same credit-file footprint.
Halifax, for example, says its AIP uses a soft credit check, while its full mortgage application involves a full credit check. Its explanation distinguishes an AIP from an offer for a specific property and warns that circumstances or lending criteria can change the outcome. That is a lender example, not a rule to apply to every UK bank—or to Ireland.
A bid can fit the headline figure and still strain your budget
Consider an illustrative Irish buyer with a €300,000 indicative loan and €45,000 of savings. A €340,000 bid would require €40,000 alongside that loan, leaving €5,000 before purchase expenses, moving costs and a personal reserve. The arithmetic fits; whether the plan is workable needs a separate check.
This example assumes the lender ultimately lends the full €300,000. It does not establish eligibility, an appropriate deposit or sufficient money for costs. Try the cash-needed-to-buy calculator with your own figures, then compare the estimate with written quotes and the lender’s conditions.
Send these questions before your next bid
- What has already been checked, and what remains conditional?
- When does this document expire, and what is required to renew it?
- What changes to my income, employment or borrowing should I report?
- What property information is needed before a formal offer?
Keep the answers beside your approval document and your own spending limit. A lending indication can help you start looking; a written explanation of the outstanding conditions helps you decide what to do next. Ask your lender or regulated adviser about your application and your solicitor before making a binding property commitment.