You have found a buy-to-let property and need to move quickly. Before you commit, will a bridging lender support your plans?
A bridging loan decision in principle, or agreement in principle, gives you an early indication. It can help you plan, but it does not guarantee funding or mean every check is complete.
Here is what it tells you, what still needs checking, and what to ask before relying on it for a purchase or refinance.
What is a bridging loan decision in principle?
A decision in principle (DIP) is an early opinion based on the information you give the lender. It means your deal may fit their lending rules, but they still need to do more checks.
That early indication can help you plan when a purchase deadline is close.
For example, one overseas couple buying a £250,000 property in Birmingham faced a sudden mortgage delay. GoGoProp approved a 6-month bridging loan within 24 hours, and they completed the deal in 13 days. The couple later moved onto a long-term mortgage.
Their story shows how bridging finance can keep a purchase moving. A DIP can help you consider this option.
How do you get a bridging loan decision in principle?
Give the lender enough information to review your deal. When you share details, include:
- Whether you are buying or refinancing
- A description of the property
- The amount you want to borrow
- The desired loan term
- How you plan to repay the loan
Ask the lender for their checklist. They may need information about you, your company, and where your funds come from, but each lender is different.
Keep the response and its terms in one place. Make sure these details are correct:
- The lender’s name
- The borrower’s name
- The property details
- The loan amount
- The date
If a broker sends you the response, ask if it is the lender’s decision or just the broker’s opinion.
Before you rely on the decision, ask which checks are still needed, who will do them, and what might change the result.
How long does a bridging loan agreement in principle last?
A bridging loan decision in principle typically lasts for 30 days, though some lenders allow up to 90 days. Check your document for the exact expiry date.
Even during that time, changes to the deal may mean the lender needs to review it again. These changes could include:
- A change to the purchase price or loan amount
- Switching from borrowing in your own name to a limited company
- Revising how you plan to repay the loan or use the property
- Let the lender know about any changes before you rely on the original decision
The expiry date does not show when the funds will be ready. It only sets the timeframe to move forward with your application.
The valuation, legal work, and release of funds each have their own timeline.
Does a decision in principle mean your bridging loan is approved?
No. A DIP is a conditional green light, not a binding contract or a guarantee of funds.
It suggests your deal may fit the lender’s criteria based on the details you have shared. The lender still needs to verify those details before proceeding.
These checks may include:
- Property valuation: Is the property worth the stated amount, and is it suitable security for the loan?
- Legal and identity checks: Is the title clear? Can the lender confirm your identity and the source of your deposit?
- Credit checks: Does your credit history meet the lender’s rules? Ask whether it uses a soft or hard search, as this varies.
- Exit strategy: Is your plan to sell or refinance realistic, and can you provide evidence to support it?
A lower valuation, title issue, or credit problem could change the terms, reduce the loan amount or lead the lender to decline the deal.
A formal offer sets out the loan terms, but you may still need to meet conditions before the lender releases funds.
Here is how the three stages differ:
Why would a decision in principle be declined later?
Even with a positive AIP, deals can stall later. The three most common reasons are:
- Down-valuations: The independent valuation comes in below the figure the lender (or you) expected. This can reduce the loan amount or push the loan-to-value (LTV) outside the lender's limits.
- Exit plan problems: The planned refinance doesn't materialise as expected, or the sale price lacks evidence. Lenders need a credible, evidenced route to repayment.
- New facts or documentation gaps: Undisclosed credit issues, incomplete source-of-funds evidence, or changes to the property or borrower after the AIP can prompt a full review.
Addressing these points early, with a clear exit plan, realistic valuation expectations, and complete paperwork, gives the AIP the best chance of leading to a formal offer.
What should you check before relying on it?
A positive decision in principle does not mean the deal will go ahead. The lender may change its view if later checks reveal a problem, such as:
- A lower property value: If the valuation is less than expected, the lender may reduce the loan or the LTV may be too high.
- An unclear repayment plan: If your refinance plan is uncertain or you lack evidence of your sale price, the lender may not proceed.
- Missing details or new facts: Credit issues, incomplete proof of funds, or changes to the deal can prompt a new review.
You can help avoid delays by sharing full details from the start. Use a realistic property value, back up your repayment plan with evidence, and have your paperwork ready.
Bear in mind, these steps help, but they do not guarantee a formal offer.
Buying or refinancing? Get an initial lending view
A decision in principle can help you plan, but make sure you know what it covers before you commit. Check the terms, ask what still needs reviewing, and confirm what must happen before funds can be released.
If you are buying or refinancing an investment or buy-to-let property in England or Wales, GoGoProp may be able to help.
Our published terms include a 1% monthly rate, a 2% handling fee, and loan terms of 3, 6, 9 or 12 months, subject to our checks and agreed terms.
Explore our bridging loans to see the terms and find out what we need to give you an initial view:
GoGoProp lends under Money Lending Licence No. 1341/2025.
Key takeaways
- A DIP is an early view based on the details the lender has so far. It helps you plan, but it is not a formal offer.
- Ask if the lender uses a soft or hard credit check, and when. A soft check doesn’t affect your credit score.
- Check the borrower, property, loan amount, term, and repayment plan it covers.
- Ask what checks remain, what limits apply, and when the decision expires.
- A lower valuation, a weak repayment plan, or new information may prevent a DIP from becoming a formal offer.
- If you plan to refinance, the mortgage lender must assess and approve that application separately.
- Use the written terms to plan your next step, then confirm the formal loan terms before you commit.
Frequently asked questions
1. Can a lender change a decision in principle?
Yes. New facts, a value check, or a change to the deal can prompt the lender to review its early view.
2. Can I use an agreement in principle to bid at auction?
It may help you plan, but check the auction deadline and ask the lender which checks remain before you bid.
3. Can I get multiple agreements in principle?
Yes. Since most lenders use a soft credit check for an AIP, getting early views from several lenders will not harm your credit score.
4. What details do I need for a decision in principle?
You typically need to provide the property address, estimated value, requested loan amount, borrower details, and a clear exit strategy.
5. Does getting a bridging loan AIP affect my credit score?
Usually no. Most lenders run a soft credit check for an AIP, which does not impact your score. A hard check typically happens only if you proceed to a full application.
