Declined Agreement in Principle

Is there anything I can do to clarify, correct or improve my application?

The main reason for a decline is undisclosed or inaccurately disclosed commitments. It might just be that you don’t know the exact balance on a credit card or how much a loan repayment is. A common issue is that hire purchase or storecards haven’t been factored in.

A top tip on that is getting a copy of your credit report. That will show you everything – and it’s what the lender will use. You can then key the details in accurately, so what the lender sees matches the credit file.

One example we’ve seen is where someone has £500 on a credit card and they’ve declared it at £300. The lender takes that £300 and adds the £500 on their file. It then becomes an £800 commitment rather than £500. Accuracy is key.

Would a decline be based on a lender’s specific criteria?

Lenders each have different criteria – and it can differ from week to week because they’re always changing and improving.

If you work with a mortgage broker, we typically find out everything about your scenario. We can then do the research and talk to lenders about how you would fit with them.

When we’re completing an Agreement in Principle, the lender’s decision is based solely on the information we provide. We therefore need as clear a picture as possible to present to a lender, that’s precise and accurate.

Are lenders more flexible with first-time buyers?

Yes. Lenders are constantly finding ways to increase affordability for first-time buyers. They are aware that there’s a big gap in the market and people are struggling to get on the property ladder.

Many lenders now have specific first-time buyer products, with unique criteria, affordability, and flexibility, so it’s a really exciting thing to be a first-time buyer in the UK [information correct at the time of recording in December 2025].

What steps can I take now to strengthen a future AIP application? Would it help if I saved a larger deposit?

Yes, it would. When lenders provide rates and a product, it’s based on the level of deposit an applicant is putting down. It’s a risk-based approach. If you’re putting down a 10% deposit, they are lending up 90% – they’re 90% at risk for that property.

More deposit gets you leniency in affordability and credit scoring. So to strengthen a future AIP application, understand your credit score and do what you can to improve it.

Can you save a larger deposit? If you’re saving a larger deposit, you’re used to putting money away. When you eventually have mortgage payments and bills, you’ve trained yourself to allow for that monthly spending.

Also, aim to maintain stability in your employment and avoid new credit applications if at all possible. Start preparing all the documentation you might need – typically three months’ payslips, three months’ bank statements and your credit report.

Should I consider a guarantor or a joint application?

Yes, if affordability is an issue. We’re aware that the biggest barrier to first-time buyers is their affordability and keeping up with house price rises.

A guarantor mortgage can allow a parent or relative to guarantee that payment. A joint application is based on two incomes, to increase affordability. There are also Joint Borrower Sole Proprietor mortgages. Without getting too technical, it’s where two people’s affordability and income are assessed, but only one person will own the property.

That’s good for parents wanting to help their children – the parents’ affordability is included, but they’re not on the deeds, so there’s no additional stamp duty to pay. It’s solely the other applicant who owns the property. There are lots of flexible schemes to help people get on the market.

Can I reapply for an Agreement in Principle soon? Or is there a waiting period?

There’s no mandatory waiting period, but it will be declined for a reason. I wouldn’t encourage anyone to just pop the same information into another system without understanding why it declined.

It’s wise to pause, identify any issues and try and fix those before reapplying. Multiple hard credit checks in a short period of time can harm a credit score and your ability to get that mortgage.

Can you suggest any tools or calculators to help first-time buyers understand affordability?

Lenders have mortgage affordability calculators that you can look at, and you’ll see that it isn’t one-size-fits-all. Every lender offers different sized mortgages. If you’re looking to really understand affordability, reach out to a mortgage broker. We’ve got systems that can compare 90+ lenders on affordability.

I can’t stress enough how important it is to get close to your credit score and your financial profile. There are budget planners you can use to track income and expenses to understand what’s affordable.

How much you can borrow can vary depending on the lender. The most important thing with a mortgage is what the monthly payments would be and how they fit with your income and outgoings. Having a budget plan already is really good to help frame that in your mind.

You have demonstrated how a mortgage broker can help here. Any final thoughts?

I would encourage people to speak to a mortgage broker, because with access to over 90 lenders, we can assess affordability and criteria to match your situation. If there are any issues, we can call a lender to understand why an Agreement in Principle was declined.

In some instances lenders can review that case and agree to it.

A mortgage broker will handle all your paperwork and be a constant point of contact. We’re not just here to do a mortgage application. We’re here from the minute you start thinking of buying a property until those keys are in your hand.

We’ll also be in touch later to see how things are, and make sure that you’ve settled in well. It’s a long-term journey, not an instant hit.

Key Takeaways:

• Agreement in Principle (AIP) declines are mainly due to credit issues (missed payments, CCJs) or undisclosed/inaccurate financial commitments.
• Ensure accuracy by obtaining your credit report and declaring all commitments precisely, as the lender will check.
• Lenders prefer stable, full-time permanent employment. Fixed-term or zero-hours contracts require a longer track record (12 months or more) for proof of income sustainability.
• Strengthen a future application by saving a larger deposit (for better affordability/credit scoring), maintaining employment stability, and avoiding new credit.
• A mortgage broker helps by matching you to suitable lenders, ensuring application accuracy, and investigating the reason for a decline.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.