For many buyers, the first worry after an agreement in principle credit check is whether the lender has left a mark on their credit file. The answer depends on the type of search used: a soft search does not affect your credit score, while a hard search is recorded and can be visible to other lenders. Our guide to mortgage affordability explains why the borrowing figure itself is only one part of the lender’s assessment.
Does an Agreement in Principle Credit Check Affect Your Credit Score?
A soft search does not affect your credit score, but a hard search may. An agreement in principle is only an early lending indication, and providers can use different credit-search procedures.
Experian describes a soft search as an initial look at selected credit-report information that is not visible to other lenders. A hard search is a fuller search recorded on the credit file, and repeated hard applications in a short period can influence how later lenders view the application history.
For a buyer establishing a realistic budget, the lender’s AIP or DIP wording matters. The four large lenders checked here currently use a soft initial search, but that should not be assumed across the whole market.
What Does an Agreement in Principle Actually Tell You?
An agreement in principle is a provisional indication of how much a lender may be prepared to lend, not a formal mortgage offer. It is usually based on the information supplied about income, expenditure, debts, deposit and address history, together with whatever preliminary credit assessment that lender performs.
For first-time buyers, our first-time buyer mortgage guide sets the AIP within the wider purchase process. The lender has not yet necessarily verified every document or accepted a particular property, so the figure remains an indication rather than final approval.
How Does an Agreement in Principle Credit Check Differ Between Lenders?
Lenders don't all handle this the same way. Several major banks now describe their initial AIP or DIP search as soft, but the examples below show why it's still worth checking the lender's own wording.
| Lender | Lender term | Initial search | Validity |
|---|---|---|---|
| Barclays | Agreement in Principle | Soft credit check | 90 days |
| NatWest | Agreement in Principle | Soft credit check | 30 days |
| Nationwide | Decision in Principle | Soft credit check | 90 days |
| Santander | Decision in Principle | Soft credit check | 60 days |
MoneyHelper’s current guidance is broader: some providers use a soft check for a mortgage in principle, while others may use a hard check. We therefore treat the search type as lender-specific rather than assuming every AIP works the same way.
What Is the Practical Difference Between a Soft and Hard Search?
A soft search can appear on your own credit information without being visible to other lenders in the same way as a hard application search. That makes it useful for an initial eligibility or borrowing assessment where the provider offers that facility.
A hard search records that a credit application has been made and can be seen by later lenders. For applicants with previous credit issues, our article on why straightforward mortgage cases rarely are explains why the wider credit record, income, commitments and timing can matter more than one isolated data point.
When Can an Agreement in Principle Credit Check Leave a Hard Footprint?
A hard footprint can arise where the provider uses a hard search at the initial stage, or later when the buyer moves from an indication into a full mortgage application. The exact point depends on the lender’s process, so the initial AIP and the formal application should be treated as separate stages.
Santander, for example, currently states that its online DIP uses a soft search and that a hard search is carried out when the full mortgage application is made. NatWest also separates its AIP from the fuller credit check used if the applicant proceeds.
Stage 1: Initial AIP or DIP
The lender reviews the information supplied and applies its stated preliminary credit-search process. With the four lenders compared above, that initial search is currently soft or not a full credit check.
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Stage 2: Property and case details
The applicant finds a property, confirms the required loan and prepares the evidence needed for the formal assessment.
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Stage 3: Full mortgage application
The lender carries out its fuller underwriting, affordability and property checks. Where its process includes a hard credit search at this stage, that application search is recorded on the credit file.
What Does This Look Like in a Worked Example?
Consider a hypothetical Putney first-time buyer looking at a £425,000 property with a £42,500 deposit and a required mortgage of £382,500. The figures are illustrative only; they do not assume that any lender would approve that borrowing amount.
Suppose the buyer obtains a Santander DIP while still comparing properties. Santander’s current process says that online DIP uses a soft search, so that initial check does not affect the credit score; if the buyer later submits a full Santander mortgage application, Santander says it then performs a hard credit search.
If the same buyer also obtains a Nationwide DIP, Nationwide currently says that check is soft too. That does not make multiple AIPs automatically useful: the provisional figure can still change when income is verified, commitments are assessed and the property is considered.
What Happens After the Initial Decision?
After an AIP, the next meaningful change is the move from an estimate to a full assessment. FCA responsible-lending rules require a regulated mortgage lender to assess whether the customer can afford the mortgage before entering into the regulated mortgage contract.
For an applicant, that fuller stage brings more evidence and scrutiny. Income, expenditure, existing credit, the mortgage structure and the property can affect the result, so a mortgage offer is different from the earlier AIP or DIP and may not match its provisional figure.
In Summary
An agreement in principle credit check may be soft or hard depending on the lender, although Barclays, NatWest, Nationwide and Santander currently describe their initial online AIP or DIP checks as soft or not a full credit check. A soft search does not affect your credit score in the same way as a hard application search, but the lender’s own process should be confirmed before relying on that assumption.
The distinction is between an early indication and a formal mortgage application. An AIP can help define a property budget, but it does not guarantee the final amount, property acceptance or a mortgage offer.
Frequently Asked Questions
The questions below cover the main credit-file and application points raised by an AIP or DIP.
Will an agreement in principle credit check lower my credit score?
An agreement in principle credit check will not lower your credit score if the lender uses a soft search. If the provider uses a hard search, that application footprint is recorded on the credit file and may be visible to other lenders.
Can other lenders see a soft search from a mortgage AIP?
Experian states that soft searches are not visible to other companies in the same way as hard searches. You may still be able to see the soft search when reviewing your own credit information.
Can I have more than one agreement in principle?
More than one AIP can be obtained, but the credit-file effect depends on how each provider carries out its check. Several soft searches do not have the same effect as several hard credit applications made close together.
Do all mortgage lenders use soft searches for an AIP?
No. MoneyHelper states that some lenders use a soft credit check for a mortgage in principle while others may use a hard check, so the provider’s current process matters.
Does an agreement in principle guarantee a mortgage?
No. An AIP is a provisional indication rather than a formal mortgage offer, and the lender can still assess verified income, expenditure, credit information, the property and other underwriting points at full application.
When does a hard credit search usually happen?
The timing varies by lender. Santander currently states that its online DIP is a soft search and that a hard search is carried out when the full mortgage application is made.
What information is normally used for an AIP?
Lenders commonly ask for personal details, income, outgoings, existing borrowing, deposit information and address history. The information required can vary, and the full mortgage application normally involves more detailed evidence.
How long does an agreement in principle last?
Validity varies by lender. The current examples checked for this article range from 30 days at NatWest to 90 days at Barclays and Nationwide, while Santander states 60 days.
For a buyer who wants to understand what an AIP has actually checked, the useful question is not simply whether a certificate was produced, but what search was carried out and what still remains for the full application. A mortgage is secured against your home, and repayments must remain affordable over the agreed term.
