Before you start viewing properties, before you make an offer, before any of the exciting parts begin — you need an Approval in Principle. It’s the first formal step in the Irish mortgage process, and estate agents will expect to see one before taking your offer seriously. This guide explains what AIP is, how to get it, and what comes next.
Disclaimer: This article is for information purposes only and does not constitute financial advice.
What Is Approval in Principle?
Approval in Principle (AIP) — sometimes called a Letter of Offer in Principle or Agreement in Principle — is a written confirmation from a lender that they are willing to lend you up to a certain amount, based on an initial assessment of your finances.
It is not a guarantee of a mortgage. Think of it as a lender saying: “Based on what you’ve told us and shown us so far, we’re happy in principle to lend you up to €X.” The full mortgage approval — which comes later, once you’ve found a specific property — involves a more detailed assessment, a valuation of the property, and a review of your solicitor’s documents.
AIP tells you your borrowing ceiling so you know which properties are realistic. It shows estate agents and developers that you’re a serious buyer. And it forces you to get your financial paperwork in order early, which makes the rest of the process smoother.
AIP vs Full Mortgage Approval — Key Differences
| Approval in Principle | Full Mortgage Approval | |
|---|---|---|
| When it happens | Before you find a property | After you’ve agreed to buy a specific property |
| What it covers | Your finances | Your finances + the property |
| Is it binding? | No | Yes (subject to conditions) |
| Property valuation required? | No | Yes |
| Legal checks required? | No | Yes |
| How long it takes | Days to 2 weeks | 2–6 weeks typically |
Full approval (sometimes called a Formal Letter of Offer) is what your solicitor needs to proceed to contract signing.
How Long Does AIP Last in Ireland?
AIP letters from Irish lenders are typically valid for 6 to 12 months, depending on the lender:
- AIB: 12 months
- Bank of Ireland: 6 months
- EBS: 12 months
- Haven: 12 months
- Avant Money: 6 months
- PTSB: 6 months
If your AIP expires before you find a property, you can renew it — usually by confirming your financial details are still the same.
What Documents Do You Need for AIP?
For PAYE (employed) applicants:
- 6 months of bank statements — all accounts you hold, showing income credited and regular outgoings
- 6 months of payslips — to verify your salary and any regular bonuses or commission
- Photo ID — passport or driving licence
- Proof of current address — a utility bill or bank statement from the last 3 months
- Details of any existing loans or credit commitments
For self-employed applicants:
- 2 years of certified accounts — prepared by an accountant
- 2 years of Revenue tax assessments (Form 11 or Notice of Assessment)
- 6 months of business and personal bank statements
- Same ID, address, and existing loan details as above
Lenders will also run a credit check through the Central Credit Register (CCR) and the Irish Credit Bureau (ICB). Check your own credit record before applying.
How to Apply for AIP in Ireland
You have two main options: go directly to a lender, or use a mortgage broker.
Going direct: You apply to a single lender — typically your current bank. The advantage is simplicity. The disadvantage is you only get one set of terms and one rate.
Using a mortgage broker: A broker submits your application to multiple lenders and compares offers on your behalf. Brokers in Ireland are regulated by the Central Bank and must act in your best interests. Most don’t charge you a fee — they receive a commission from the lender when your mortgage completes.
If you’re a first-time buyer, a broker is often worth using. They know which lenders are currently processing fastest, which are most flexible on certain income types, and which are offering the sharpest rates.
Timeline: Most Irish lenders can issue an AIP within 5–10 working days of receiving a complete application. During busy periods, it can take up to 3 weeks.
Will AIP Affect My Credit Score?
When you apply for AIP, lenders will run a credit search against your record. Multiple AIP applications in a short period can look like financial stress to other lenders, so avoid applying to every lender simultaneously.
If you’re using a broker, they can typically do an initial soft assessment before formally applying, which helps narrow down the best lender before triggering a full credit search.
What Happens After AIP?
Once you have AIP in hand, the property search begins in earnest. When you find a home and have an offer accepted, here’s what follows:
- Instruct a solicitor — your solicitor handles the legal side of the purchase
- Commission a property valuation — the lender will appoint a valuer to assess the property (fee usually €150–€200)
- Submit full mortgage application — you may need to provide updated documents if your AIP was issued more than a few months ago
- Receive formal Letter of Offer — the binding mortgage offer from the lender
- Sign contracts — your solicitor and the vendor’s solicitor exchange contracts
- Drawdown — the mortgage funds are released on completion day
The gap between AIP and drawdown is typically 8–16 weeks for a second-hand home, and longer for new builds depending on construction stage.
Frequently Asked Questions
Does AIP guarantee I’ll get the mortgage? No. AIP is a conditional indication of lending willingness. The lender can still decline at the full approval stage if your circumstances change or the property valuation is lower than expected.
Can I get AIP from multiple lenders at the same time? You can, but each application generates a credit search. It’s generally better to do this through a broker who can guide you to the most suitable lender first.
Do I need AIP before viewing properties? No, you can view properties without it. But you should have it before making an offer — most estate agents will ask for a copy when you bid.
What if my financial situation changes after I get AIP? Tell the lender or your broker immediately. Starting a new job, taking out a loan, or having a child can all affect your mortgage application.
Can I get AIP as a self-employed person? Yes, but the process is more detailed. You’ll need 2 years of certified accounts, and lenders typically average your income over those 2 years. A broker can advise on who is best placed to help.
This article is for information purposes only and does not constitute financial advice.
This article is for information purposes only and does not constitute financial or mortgage advice. Mortgage Bible is not regulated by the Central Bank of Ireland. Always speak to a qualified mortgage broker or lender before making any financial decision.
