Mortgage in principle, soft and hard credit checks

A mortgage in principle, also called an agreement or decision in principle, can affect a credit file only if the lender runs a hard search. Many lenders now use a soft search at this stage, which other lenders cannot see. Others run a hard search, so it is worth checking which type is used before applying.

A mortgage in principle is an indication, not a formal offer. It shows how much a lender might lend based on the information given and a credit search, and estate agents often ask for one before accepting an offer on a property.

A soft search lets a lender or comparison service look at a credit file without leaving a mark that other lenders can see. It is used for eligibility checks, quotes and many mortgages in principle. Only the applicant can see soft searches on their own file, and they do not change how lenders assess an application.

Because soft searches leave no visible footprint, applicants can use eligibility checks to compare options before committing to a full application.

A hard search is recorded on the credit file and can be seen by other lenders. Lenders run one when a full mortgage application is made, and some run one at the agreement in principle stage. A hard search stays visible on the file for 12 months (credit reference agencies, accessed 20 Oct 2026).

One hard search is a normal part of applying for credit and has a small, temporary effect. Several applications in a short period can suggest financial pressure, so lenders may view a cluster of hard searches more cautiously than a single one.

When a full mortgage application is submitted, the lender runs a hard search and checks the file against the application. It looks at payment history, existing debts, the electoral roll and any links to other people. Underwriters may ask about anything that does not match, such as an address or a missed payment.

Using a broker can help match an application to lenders whose criteria fit, which can reduce the number of hard searches needed. The guide to which credit report lenders use explains where the data comes from.

Some lenders run a further check shortly before the mortgage completes, to confirm nothing has changed since the offer. Taking out new credit, missing a payment or a change in employment between offer and completion can lead the lender to review or withdraw the offer, so applicants usually avoid new borrowing during this period.

Any change in circumstances after an offer is issued is normally reported to the lender or broker, as the offer is based on the information given at application.

Applying to several lenders at once with full applications leaves several hard searches on the file. Credit reference agencies do not group mortgage searches together in the way some other countries do, so each hard search is recorded separately and visible to the next lender.

Checking eligibility with soft searches first, and only making a full application once a suitable lender has been found, keeps hard searches to a minimum.