An agreement in principle is a written indication of how much money your lender is willing to borrowoffer you.
You may need provide a would-be estate agent or vendor your agreement, as proof of your ability can use this to show to estate agents when you make an offer, to purchaseshow that you can afford the property.
You may also hear an agreement in principle referred to as an agreement in principle is sometimes also called:
Decision in principle
Mortgage in principle