Does a Mortgage in Principle Affect Your Credit Score?

Discover the ways a mortgage in principle can impact your credit score, how lenders check your credit, and how to protect your score when applying

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Written by Hayley Bevan and Scott Yule

Published on April 16th, 2026

Last reviewed on April 16th, 2026

9 mins read

Understanding credit cards

A mortgage in principle (MIP) is a non-binding estimate from a lender agreeing to lend you a set amount based on initial credit checks and your overall financial situation. It helps to define your budget and demonstrate to vendors you’re serious about buying a property.

If a lender uses a soft check to assess your eligibility, it’s unlikely to affect your credit score. A hard check, however, has the potential to temporarily lower your score. What credit score you need for a mortgage will depend on your chosen lender.

In this guide, we’ll deep-dive the difference between a mortgage in principle and mortgage application, what details are checked along the way, and get you up to speed on how a soft and hard credit check can potentially impact your score.

What is a mortgage in principle, and how does it work?

As well as saving for a mortgage, you’ll also need a mortgage in principle. A conditional statement from a lender typically lasting between 30 to 90 days which details how much they are willing to lend you based on your credit score and financial situation.

Although it’s not a formal offer, a mortgage in principle gives first-time buyers and current homeowners a realistic idea of property budget and what you can afford to repay each month.

To estimate how much they are willing to offer, a lender will undergo a detailed check of your finances which could include your current level of debt and records of loan applications.

They’ll also perform either a soft or hard credit check – both of which varying in how they can impact your credit score:

Soft credit checks involve a lender viewing your credit report. The check is invisible to other lenders and unlikely to affect your credit score.

Hard credit checks are actioned when you make a formal application for credit. Your lender will compile a detailed credit report which is marked on your file and could temporarily lower your score.

Requesting multiple hard credit checks in a short space of time can signal to lenders you’re attempting to take on too much debt, meaning you’re a higher risk for lending. For that reason, be selective with checks to protect your overall credit score.

With whichever check used by your lender, a mortgage in principle is useful by demonstrating to vendors you’re serious about buying a property and have a realistic idea of your budget.

Will my credit score be affected if I get a mortgage in principle?

A mortgage in principle has the potential to impact your credit score. Although it’s not a legally binding contract, a lender will perform one of two checks to understand your creditworthiness.

In most cases, lenders opt for a soft credit check which is unlikely to affect your score or impact your ability to apply for borrowing in the future. But there are situations where a hard check might be required which can impact your score.

This is usually typical for high-value or complex applications with limited financial information, as well as applications with concerns relating to fraud or identity verification.

If a hard credit check does affect your score, it’s usually small and temporary. But making multiple requests in a short space of time can result in a quicker decline of your score.

That said, the same logic doesn’t usually apply for a mortgage in principle. Multiple requests made in a short period of time (14 to 45 days) are interpreted by scoring models as shopping around and treated as a single inquiry, which is unlikely to repeatedly lower your score.

Before requesting a mortgage in principle, it’s worth asking your potential lender whether they perform a soft or hard credit check. At the stage where you apply for a full mortgage application, a lender will run a hard credit check which will leave a footprint on your report.

What effect could a poor credit score have on my application?

As with other financial products, a poor credit score can have an impact on your mortgage application, potentially making it harder to secure an offer or your desired lending amount.

Securing a mortgage with bad credit is still possible. But lenders may offer a limited borrowing amount or approve the full amount with stricter lending terms (such as higher interest rates) to offset the risk.

Where a credit check shows negative markers such as a county court judgement (CCJ) or payment default, lenders are more likely to reject an application based on the conclusion you’re a higher risk for lending.

How can I improve my credit score?

There are many actions you can take to improve your credit score, such as paying off your debts, staying on top of payments, and checking your credit report for errors. Here are a few ways to get things moving in the right direction:

Stay on top of bills and payments by borrowing within your means and budgeting for upcoming expenses such as utility bills, weekly food shops, and credit card repayments.

Pay off your debt wherever possible and avoid interest payments and accruing a balance where paying back what you borrow becomes difficult or unmanageable.

Keep your credit card balance low to maintain a healthy credit utilisation ratio that doesn’t exceed 30% of your overall borrowing capacity.

Check your credit report for errors that could be pulling down your score, such as incorrect address details, fraudulent activity, or inaccurate records of a late payment.

Avoid multiple hard check applications in a short space of time to mitigate the risk of lenders concluding you’re dependent on credit and struggling to secure a financial product.

Even if you currently have a poor credit score, it’s reassuring to know it doesn’t have to be permanent. By consistently demonstrating sensible financial behaviour, you can slowly get your finances back on track.

Will a mortgage in principle credit check affect my Aqua card/application?

When reviewing your credit application, Aqua considers any hard credit check shown on your record. With records that show multiple checks in a short space of time, it’s more likely an application is rejected.

If you already have an Aqua credit card and consistently make repayments on time, it’s unlikely a credit check will have any significant impact. But if a periodic review of your account shows a reduced credit score, it can prevent an increased credit limit.

By using your Aqua credit card responsibly, you’re demonstrating sensible borrowing behaviour which not only improves your credit score, but goes a long way to support your mortgage application.

How can I protect my credit score when applying for a mortgage?

Before you apply for a mortgage, it’s best to get your finances in the best shape possible. Here are several steps you can take to improve your chances of being accepted.

Check your credit report for any inaccuracies which might influence how lenders assess your application.

Use soft credit checks by shortlisting lenders who don’t request a hard credit check when applying for a mortgage in principle.

Avoid multiple hard credit checks in a short space of time to protect your score and overall credit health.

Keep up with payments and reduce existing debt to demonstrate responsible credit behaviour with potential lenders.

Avoid accruing new debt during the application process to maintain a healthier credit score and overall financial profile.

By putting these actions in place, you could improve your chances of being accepted for a mortgage at the desired amount you need to secure your new home.

Depending on the type of credit check used by lenders, a mortgage in principle can affect your credit score. Wherever possible, it’s best to opt for soft checks and avoid multiple hard checks in a short space of time.

To protect your score during the mortgage in principle application process, it’s wise to:

Check your credit report
Use soft checks (wherever possible)
Avoid multiple hard checks
Keep up with credit card repayments
Reduce existing debt
Avoid accruing new debt.

Before you consider a mortgage in principle, it’s a smart move to seek professional advice to better understand your options and what you can realistically afford to borrow.

Want to improve your credit score? Find out if you could be eligible for an Aqua credit card today, and start building healthy borrowing habits and help strengthen your credit profile.

Representative 39.9% APR (variable) on Aqua Classic

FAQs

Can a mortgage in principle reduce my credit score?

A mortgage in principle doesn’t generally affect your credit score provided lenders use a soft check which doesn’t show on your credit report. For more complex finance cases where a hard check is required, you might see a temporary dip in your score.

Will a mortgage in principle be added to my credit report?

A mortgage in principle might be added to your credit report if a lender uses a hard credit check to assess your creditworthiness. But, in most cases, a soft check is used which doesn’t leave a visible footprint on your report.

What is the difference between a soft and hard credit check?

Soft checks are informal inquiries which don’t leave a mark on a credit report or impact your credit score. Hard checks, however, are part of formal inquiries which can temporarily lower your score and remain visible on your report for up to two years.

What can I do to protect my credit score when applying for a mortgage in principle?

To protect your credit score when applying for a mortgage in principle, check if your chosen lender uses a soft search rather than a hard search (which can impact your score). You should also correct any errors on your credit report, make payments on time, and avoid accruing new debt.

Could owning an Aqua credit card affect my mortgage application?

Provided it’s used responsibly, owning an Aqua credit card can help to improve your score and strengthen your mortgage application. As with other types of credit cards, if you default on a repayment or continually carry a high credit utilisation, it can have the opposite effect on your credit health.

Failure to make payments on time or to stay within your credit limit means that you will pay additional charges and may make obtaining credit in the future more expensive and difficult.

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