Declined Agreement in Principle
- Access to competitive rates and some you can't get direct
- Specialist Advisers
- We work with variety of providers
What's On This Page?
Get In Touch
Declined Agreement in Principle
Charlie Connolly explains what happens when an Agreement in Principle has been declined.
Can an Agreement in Principle or AIP be declined?
Yes, an AIP can be declined for a number of reasons. We’re going to go into those in detail here.
What happens if my AIP has been declined?
If your AIP is declined, your mortgage broker will speak to the lender and find out what has caused this. We will then reevaluate your options based on the decline and look to give you another route to pursue.
Why has my AIP been declined? What would the reasons be for this?
There are a number of reasons that an AIP can be declined. These can include not being on the voters roll, having bad credit or no credit. There could be criteria-based declines, due to the property itself or perhaps your employment history. You can also be declined for affordability and income reasons.
Can a rejected Agreement in Principle affect your credit score?
It’s unlikely to affect your credit score. Most lenders use a soft search to check your eligibility for an Agreement in Principle.
Speak To an Expert
Can an Agreement in Principle be changed?
Yes, you can amend an Agreement in Principle if your circumstances change. You might get a pay rise, for example, or you may have paid off a credit card or a loan.
It can also be changed if you find a property for a different purchase price and you need to borrow a different loan amount.
Can a mortgage be declined after an Agreement in Principle?
Yes, a mortgage can still be declined after an AIP. This can happen for a number of reasons.
The lender might find information during the application process that doesn’t quite meet their criteria. They may change their decision if your circumstances have altered – such as if you lose your job or you take on more credit commitments. It could be that you’ve had a recent bad credit event.
The lender may also offer different terms than were outlined in an AIP, rather than decline it. If your property were to down-value or be seen as unsuitable following the lender’s valuation, this could also result in a mortgage decline.
How many times can you apply for an AIP?
There isn’t a limit to the number of times you can apply, but applying for multiple AIPs could potentially have a negative impact on your credit score.
How long does it take to get an Agreement in Principle approved?
Typically most AIP decisions are instant. But if the circumstances are a bit more unusual, such as there being an element of bad credit, they can potentially be referred. This results in a manual underwrite, which can be subject to a lender’s standard turnarounds.
How can I better my chances of getting my Agreement in Principle approved?
I’ve got a few tips to better your chances. For example, make sure you’re listed on the voters roll at your address, pay your bills and commitment bills on time and reduce any outstanding balances on credit cards and loans.
If you’re looking to remortgage soon, try to avoid any new credit applications unless it’s absolutely necessary.
How can a mortgage broker help?
We can add value and take the stress out of the process for you. We’ll guide you through everything, from giving you an indication of the budget right up until you get the keys for your new home.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.