Declined After an Agreement in Principle?
Mortgage Declined After an Agreement in Principle? What Now
An agreement in principle is only a first look. The full application digs deeper into your income, credit, outgoings and the property itself, and any of those can trip it up. A decline from one lender is not a decline from all of them. We will find out why and work out where to go next.
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Why It Happens
An Agreement in Principle Is Not a Mortgage Offer
Most agreements in principle are based on a quick credit check and what you tell the lender. The full application checks everything properly, and each lender has its own rules.
- ✓Lender scorecards: you can have a good credit score and still not fit one lender's profile
- ✓Income evidence: payslips, overtime, bonuses or self-employed figures that do not match what was entered
- ✓Credit file: a missed payment, default or high card balances picked up on the full search
- ✓Outgoings: childcare, car finance, loans or gambling on your statements reducing affordability
- ✓The property: non-standard construction, high-rise flats or a low valuation
How We Help
What We Do After a Decline
Five steps to get your application back on track.
Find Out the Real Reason
We look at what the lender said, your credit file and your paperwork so we know what actually caused it.
Stop Applying Everywhere
Lots of applications in a short space of time can make things worse. We pause and plan.
Fix What Can Be Fixed
Correct errors on your credit file, tidy up your statements or gather better income evidence.
Pick the Right Lender
Lenders score people very differently. We go to one whose criteria actually fit you.
Apply Properly
A full application with the right evidence first time, and we handle the underwriter questions.
Common Reasons
The Usual Culprits
If one of these sounds like you, it is fixable more often than people think.
Credit Scoring
Each lender scores differently. Failing one scorecard says nothing about the next.
Check My Options →Income Evidence
Variable pay, a new job, probation or self-employed income all need the right lender and the right paperwork.
Talk It Through →Credit File Issues
Missed payments, defaults, CCJs or maxed out cards. Some lenders specialise in exactly this.
Get Straight Advice →Affordability
Big monthly commitments reduce what you can borrow. Clearing or reducing debt can change the picture.
See Where I Stand →The Property
Non-standard construction, ex-council flats or high-rise blocks are not for every lender.
Ask a Question →Down Valuation
If the valuation comes in under the price, the lender works from the lower figure.
Talk It Through →Common Questions
Declined Mortgage Questions, Answered
The things people ask us after a lender says no.
Why was my mortgage declined after an agreement in principle?
Usually because the full application checked things the agreement in principle did not, like your full credit file, income evidence, outgoings or the property.
Does a declined mortgage affect my credit score?
The decline itself is not shown on your credit file, but the hard search from the application is. Several hard searches close together can look bad, so do not keep reapplying.
Will the lender tell me why I was declined?
Sometimes they give a general reason, sometimes not. A broker can often find out more and look at your credit file with you.
Can I apply to another lender straight away?
You can, but it is better to find the reason first. Applying again with the same problem usually gets the same answer.
Can a broker help after a decline?
Yes. We know how different lenders score people and which ones are more flexible on credit, income or property type.
How long should I wait before applying again?
It depends on the reason. If it was the lender fit, you may not need to wait at all. If it was your credit file, a few months of clean history can help.
Should I check my credit report?
Yes. Check all three credit reference agencies, Experian, Equifax and TransUnion, and get any mistakes corrected.
Can I still buy the house I had an offer on?
Often, yes, if we can find another lender quickly. Let your solicitor know early so timings can be managed.
Related guides
- Getting a mortgage with poor credit
- How online gambling affects your mortgage
- Understanding your credit score
- Affordability checks when buying your first home
- All mortgage questions answered
Written by Tony Flynn, mortgage broker at Tony Flynn Mortgages, helping homebuyers across Lanarkshire and Scotland. This page is general information, not personal advice. Speak to Tony about your own circumstances.
Get in Touch
Talk to Us Before You Apply Again
Fill in the form and we will be in touch within one working day. Tell us which lender declined you and roughly why, and we will give you a straight answer on where you stand.