If you’re planning to apply for a mortgage in Newcastle, one of the first steps you’ll come across is getting a mortgage agreement in principle (AIP).

It’s a useful way to find out how much you could borrow, and to show sellers that you’re serious about buying.

A question first time buyers in Newcastle often ask us is whether this process affects your credit score. The answer depends on the type of credit check your chosen lender uses.

Some lenders carry out a soft credit search, which won’t have any impact on your score or appear to other lenders. Others may use a hard credit check, which will be recorded on your credit file.

Below, we’ll explain the difference, what to watch out for, and how to make sure you protect your credit during the early stages of your mortgage journey.

What is a Mortgage Agreement In Principle?

A mortgage agreement in principle is a document or certificate from a lender that confirms, in principle, how much they might be willing to lend you. It’s based on the information you provide about your income, spending, and credit history.

Getting an AIP early in the process gives you a realistic view of your borrowing power. Estate agents and sellers may also ask to see it before accepting an offer, especially in competitive markets.

It’s important to remember that an AIP is not a guarantee. It’s based on preliminary checks and is usually subject to full underwriting later on. Still, it can be a really helpful starting point when you’re getting ready to buy.

Our mortgage advisor in Newcastle, can arrange AIPs for our clients before they start viewing homes. This can help avoid disappointment later and put you in a stronger position when it’s time to make an offer.

What’s The Difference Between a Soft & Hard Credit Check?

When a lender processes your agreement in principle, they’ll run some form of credit check. This helps them get a clearer picture of your financial situation.

Soft Credit Check

A soft credit search checks your credit history without leaving a visible mark that other lenders can see. Soft searches won’t impact your credit score so you can apply for an AIP with confidence.

Hard Credit Check

Hard credit checks are more thorough and will be recorded on your credit file. Too many hard checks in a short space of time can lower your credit score or raise red flags for other lenders, who may assume you’re struggling to get approved.

Not all lenders use the same process, and some don’t clearly state which type they use upfront. That’s why it helps to work with a mortgage broker in Newcastle who can check for you and recommend lenders who use soft searches when appropriate.

Will an AIP Guarantee I’ll be Approved for a Mortgage?

No, having a mortgage agreement in principle doesn’t mean you’ll be automatically approved. It’s just an indication that, based on your current details, a lender is open to considering your application.

A full mortgage application will involve a deeper look at your income, employment, spending, bank statements, and a more detailed credit check. The lender will also want to make sure the property you’re buying is suitable security for the loan.

That said, a well-matched AIP can give you a strong foundation. As a mortgage advisor in Newcastle, our job is to match you with lenders who suit your specific situation. This means your agreement in principle is more likely to lead to a successful full mortgage offer.

Can Too Many AIPs Affect My Credit Score?

Yes, if they involve hard credit checks. If you apply for several agreements in principle in a short space of time, and each one leaves a footprint, this could affect your credit score or make lenders more cautious.

For example, if your credit report shows multiple recent hard checks, it could look like you’ve been declined elsewhere or are applying for too much credit at once. This is why it’s important to limit how many lenders you approach directly, especially without knowing how they carry out their checks.

By working with a mortgage broker in Newcastle, you can avoid this issue. We’ll help you apply to just one lender at a time, usually one that uses a soft search to protect your credit file while still moving the process forward.

Date Last Edited: November 7, 2025