Agreement in Principle: Hard vs Soft Credit Searches

Getting an Agreement in Principle (AIP) may involve either a hard or soft credit search, depending on the mortgage lender. A soft search won’t affect your credit score, while a hard search leaves a record on your credit file that other lenders can see.

Both types of searches can be used when assessing your eligibility for a mortgage, although receiving an AIP doesn’t guarantee that your full mortgage application will be approved.

What is an Agreement in Principle?

An Agreement in Principle, sometimes called a Mortgage in Principle or Decision in Principle, is an indication of how much a mortgage lender may be willing to let you borrow.

The lender will usually consider information about your income, deposit, existing financial commitments and credit history before deciding whether to issue an AIP.

Having an Agreement in Principle can be particularly useful if you’re a first time buyer preparing to search for properties. It gives you an indication of your borrowing potential and can help you narrow down your property budget.

It can also demonstrate to estate agents and sellers that you’ve taken steps towards arranging your mortgage.

If you’re looking at properties across Birmingham and the surrounding areas, getting an AIP before arranging viewings can help you focus on homes that are more likely to be within your budget.

An AIP isn’t a formal mortgage offer, though. The lender will still need to assess your full application and the property you want to buy before making a final lending decision.

What is a Soft Credit Search for a Mortgage?

A soft credit search allows a lender to review information from your credit file without leaving a record that other lenders can see.

Soft searches are commonly used when checking eligibility for financial products, verifying your identity or assessing an Agreement in Principle.

You may be able to see a soft search when checking your own credit report, but it won’t affect your credit score.

Many mortgage lenders use soft credit searches when issuing an AIP, allowing you to get an initial indication of your borrowing options without affecting your credit rating.

Can You Get an Agreement in Principle Without Affecting Your Credit Score?

Yes, you can get an Agreement in Principle without affecting your credit score if the lender uses a soft credit search.

This can be useful if you’re comparing mortgage options or want to check your potential borrowing amount before committing to a property.

However, not every lender follows the same process. Some may carry out a hard search when assessing an AIP, so it’s worth checking which type of search will be used before proceeding.

An AIP involving a soft search can still provide a useful indication of your eligibility. The type of credit search doesn’t determine whether you’re guaranteed a mortgage.

What Is a Hard Credit Search for a Mortgage?

A hard credit search is a formal check of your credit file that leaves a record visible to other lenders.

Mortgage lenders may carry out a hard search when you apply for an Agreement in Principle or submit your full mortgage application.

The search allows the lender to assess information in your credit history as part of its lending decision.

A hard search can have a temporary effect on your credit score, particularly if several applications are made over a short period.

This doesn’t mean that having a hard search will automatically prevent you from getting a mortgage. Lenders consider your wider financial circumstances rather than making decisions based solely on the number of searches recorded.

Does Passing a Hard Credit Check Mean Your Mortgage Will Be Approved?

No, passing a hard credit check doesn’t guarantee that your mortgage application will be approved.

Although a lender may be satisfied with your credit history at the Agreement in Principle stage, it will still need to review your full mortgage application.

This normally includes checking your income, outgoings, employment circumstances, supporting documents and the property you intend to purchase.

The lender will also need to carry out a mortgage valuation to establish whether the property provides suitable security for the loan.

Even if you’ve received an AIP following a hard credit search, your application could still be declined if you don’t meet the lender’s requirements during the full assessment.

What Is the Difference Between a Hard and Soft Credit Search?

The main difference between a hard and soft credit search is how the search appears on your credit file and whether it can affect your credit score.

Neither type of credit search guarantees mortgage approval. The lender’s decision will depend on whether you meet its full lending criteria.

Can Too Many Credit Searches Affect Your Mortgage Application?

Several hard credit searches over a short period can affect your credit score and may raise questions when a lender assesses your application.

This is particularly relevant if you’ve recently applied for multiple credit cards, personal loans or other forms of borrowing.

A lender may want to know why several applications have been made and whether you’ve taken on additional financial commitments.

Soft credit searches don’t have the same effect, as they aren’t visible to other lenders and don’t affect your credit score.

If you’re planning to apply for a mortgage, it can be worth reviewing your credit report beforehand and avoiding unnecessary credit applications.

Rather than approaching several mortgage lenders individually, we can help you identify suitable options based on your circumstances and explain what type of credit checks may be involved.

What Happens After Getting an Agreement in Principle?

Once you’ve received an Agreement in Principle, you can begin searching for a property with a better indication of what you may be able to borrow.

For example, you might be comparing properties in Erdington, Northfield or neighbouring areas such as Sutton Coldfield. Knowing your potential mortgage budget can help you decide which properties are worth viewing.

If you find a suitable home and have an offer accepted, the next stage is usually to submit a full mortgage application.

The lender will then carry out further checks, which may include reviewing your payslips, bank statements, deposit evidence and other supporting documents.

It will also assess the property before deciding whether to issue a formal mortgage offer.

How Long Does an Agreement in Principle Last?

An Agreement in Principle typically lasts between 30 and 90 days, although this can vary depending on the lender.

If your AIP expires before you’ve found a property, we’ll be able to renew it or apply for another one.

You should also let your advisor know if there have been any significant changes to your income, employment or existing credit commitments since your original AIP was issued.

Should You Check Your Credit Report Before Applying for an AIP?

Checking your credit report before applying for an Agreement in Principle can help you identify any issues that may affect your mortgage application.

Your report contains information about your existing credit commitments, repayment history and certain public financial records.

You can access your credit information through agencies such as Experian, Equifax and TransUnion.

It’s worth checking that your personal details and address history are accurate, particularly if you’ve recently moved home.

If you notice incorrect information, you can contact the relevant credit reference agency to request a correction.

You can also look at our guide to what credit score you need for a mortgage for more information about how lenders assess credit history.

Can a Mortgage Broker Help With an Agreement in Principle?

A mortgage broker in Birmingham can help you apply for an Agreement in Principle and explain what credit checks may be involved.

At Birminghammoneyman, we’ll review your income, deposit, financial commitments and property plans before looking at the mortgage options available through our panel of lenders.

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We can explain whether a lender is likely to use a hard or soft credit search and help you prepare the information needed for your application.

If you’re buying your first home or planning to move, we can also help you work out what you may be able to borrow before you begin searching for properties.

You can arrange a free initial mortgage appointment with our team, and an Agreement in Principle can usually be obtained within 24 hours of your appointment, subject to the lender and your circumstances.

Date Last Edited: October 22, 2026