What Is an Approval in Principle (AIP)?
In the Irish mortgage market, an Approval in Principle (AIP) is a preliminary assessment from a lender that shows how much they may be willing to lend to a potential home buyer.
For first-time buyers, it’s a vital first step — helping you understand your borrowing capacity and strengthening your position when making an offer on a property.
While not legally required, having an AIP has become the norm in Ireland’s competitive housing market.
Why You Need an Approval in Principle
1. Know How Much You Can Borrow
An AIP gives you a clear picture of what a lender is likely to approve, based on your income, savings, and financial history.
It’s not a guarantee, but it helps you set a realistic budget before house hunting.
2. Show Estate Agents You’re a Serious Buyer
Estate agents prefer working with buyers who already have an AIP.
It shows you’re financially prepared, making your offer more credible and attractive to sellers.
Tip: If you prefer not to show your approved amount, you can redact it or ask your mortgage broker to provide a confirmation letter without the figure.
3. Speed Up the Full Mortgage Application
Once you find a property, having an AIP means most of the financial checks are already done.
This can help you get your full mortgage approval faster, avoiding unnecessary delays.
Types of Mortgage Approval in Ireland
Understanding the different stages of mortgage approval helps you stay informed and prepared throughout your home-buying journey.
1. Preliminary or “Soft” Approval
This is an informal estimate issued by a lender or mortgage broker.
It’s based on your basic details — such as your desired loan amount and term — and gives a rough idea of what you might be able to borrow.
A “soft” AIP can be obtained online from some lenders or through a broker’s platform. However, it’s not underwritten and not always accepted by estate agents when placing a bid.
2. Formal “House Hunter” Approval in Principle (Underwritten AIP)
This is the gold standard of AIPs. It’s a fully underwritten assessment, meaning your lender has reviewed your documents and verified your financial situation.
All estate agents in Ireland will accept this type of AIP as proof that you’re a qualified buyer.
Documents typically required:
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Recent bank statements (dated within one month)
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Credit history documents (loan statements, credit card statements, or earnings record)
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Proof of identity (passport or driver’s licence – front and back)
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Proof of income (3 months’ payslips, salary certificate, and Employment Detail Summary from Revenue)
Once approved, the lender issues a formal AIP letter outlining the loan amount you are likely to receive.
Validity: Most AIPs are valid for 6 to 12 months, depending on the lender. If you do not find a property within that timeframe, you will need to start a fresh mortgage application.
3. Property-Specific Mortgage Offer Letter
After finding a property, your lender will reassess your application with details of that property.
They’ll review:
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Your up-to-date financials
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The property valuation
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Legal and insurance checks
If approved, you’ll receive a Mortgage Offer Letter — a binding loan offer, subject to standard conditions (like mortgage protection and home insurance).
Key points:
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Confirms your exact loan amount
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Required before signing contracts
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Usually valid for six months
Does an AIP Guarantee a Mortgage?
No — an AIP is not a formal mortgage offer. It’s a strong indication of approval if your financial circumstances remain unchanged.
To improve your chances of receiving your full mortgage offer, follow these simple tips:
- Avoid changing jobs
- Stay within your approved budget
- Don’t take out new loans or credit cards
- Hold off on large purchases
- Ensure the property meets mortgage lending criteria
Partner With Mortgage123 — Your Mortgage Experts
At Mortgage123, we’ve helped thousands of Irish buyers successfully navigate the mortgage process — from Approval in Principle to final drawdown.
Our brokers will:
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Assess your financial profile
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Compare lenders to find the best deal
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Guide you step-by-step through every stage
Let us help you secure your mortgage and get the keys to your new home with confidence.
👉 Get Your Approval in Principle Today
Final Thoughts
An Approval in Principle is your first big step on the path to homeownership in Ireland.
It gives you the clarity, confidence, and credibility you need to move from “just looking” to “ready to buy.”