Does a mortgage in principle affect your credit score?
Getting a mortgage in principle (MIP) won’t impact your credit score if your broker or lender uses a soft credit search. But what does that mean, exactly?
Let’s find out how credit checks work when getting a MIP.
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Author - Luke Hollingdale Editor - Stuart Bowman
Last reviewed on 3rd April 2025
A quick summary:
Mojo Mortgages will only perform a soft credit check when you apply for a mortgage in principle
These checks allow us to confirm your personal details and give us a basic overview of your financial history. This information helps to determine how much a lender may be willing to offer you in principle if you decide to apply for a mortgage. It gives us (and you!) confidence that you can get a mortgage once you are ready to apply for one
A soft credit check does appear on your credit file but is only visible to you and won’t affect your credit score
You can’t avoid a hard credit check altogether when getting a mortgage, though. All lenders will perform a hard search once you submit a full mortgage application
Working with a mortgage broker can help you understand your credit history and ways to strengthen your application - they’ll also help to match you with a lender whose eligibility requirements you meet to improve your chances of getting accepted
What you need to know about mortgage in principle credit checks
When you get a mortgage agreement in principle, you’ll find out how much a lender might be willing to offer you should you go ahead with a full mortgage application.
Most lenders and brokers use a soft credit check at the mortgage in principle stage. This helps them to gather basic personal and financial information about you, which shapes their decision on whether you qualify for a MIP and how much you might be able to borrow.
It’s important for brokers and lenders to run a soft credit check - having a MIP with an estimated borrowing amount isn’t very useful if you’re not actually likely to get a mortgage once you’re ready to apply for one. We run a soft credit check and check your credit commitments to make sure you’re likely to qualify for a mortgage, and for a realistic borrowing amount.
Always ask your broker or lender if they conduct a soft or hard search before applying for a mortgage in principle so you know where you stand. A soft credit check doesn’t leave a mark on your credit report and has no impact on your credit score. However, some still use a hard credit check which can affect your credit score.
Soft search vs hard search
Both soft credit checks (soft search) and hard credit checks (hard search) are used by brokers and lenders to help assess a person’s creditworthiness. There are some key differences between the two, though.
A soft search provides an indication of whether you meet initial lending criteria, whereas a hard credit check is used to make a final decision when you submit a formal mortgage application as it provides a more detailed overview of your credit history and financial behaviour.
| Soft credit check | Hard credit check |
|---|---|---|
Credit score impact | Does not affect credit score | May affect your credit score if too many hard searches are conducted in a short space of time |
Mark on credit report | Only visible to you (not to other lenders) | Visible to other lenders or financial institutions, indicating recent applications for credit |
Information provided | Top-level view of your financial history, such as personal details, types of credit you have, details of any missed or late payments and public records (bankruptcies or insolvencies) | In-depth picture of your financial history, including full borrowing history and any recent credit applications (including other hard searches) |
Typically used for | Eligibility checks and background checks such as a mortgage in principle or for checking your own credit report | Full finance applications such as a mortgage application |
As you can see, it’s important you choose a lender or broker that uses a soft credit check at MIP stage to avoid multiple hard credit checks appearing on your credit report.
“While you know you’re just conducting initial mortgage research, a lender won’t know the reason behind a hard credit check. Lots of hard credit checks in quick succession could imply you’re applying for multiple credit products, which suggests you’re either struggling to get accepted (hard credit checks don’t show the outcome of any application) or you’re overly reliant on borrowing money. This can be a red flag for lenders and could impact the outcome of your formal mortgage application later down the line.”
Emily Smith, Mortgage Expert
Top tip: check your credit report before applying for a mortgage in principle
Get an idea of your credit score and identify any problems with your credit history that could hold you back during the mortgage application journey. Plus, if you do spot any mistakes or errors on your report, it’s a good idea to get these rectified before applying for a mortgage in principle. Even something as seemingly insignificant as a typo could impact your credit score and, therefore, your MIP application.
It’s free to get a copy of your credit report yourself from the main three credit reference agencies (Experian, Equifax and TransUnion). However, when you book a Mojo Mortgages appointment, our brokers will get a copy of your credit report on your behalf. They’ll use this information to recommend ways to strengthen your credit score before applying for a mortgage.
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Can I get a mortgage in principle with no credit check?
Lenders and brokers typically perform a soft credit check, which doesn’t affect your credit score, but it is technically possible to get a preliminary mortgage in principle with no credit check at all.
However, a MIP provided with no credit check will be very basic and may not be particularly helpful in your mortgage journey. These MIPs are based purely on the information you provide about your income and expenses, and are really no more accurate than a basic mortgage affordability calculator.
To get a clearer idea of your mortgage affordability, you should get a MIP from a reputable mortgage broker like Mojo Mortgages. We use a soft credit check to access some further information about your credit history and financial behaviours, so we can give you a more accurate idea of your borrowing potential.
Worried your credit history is going to hold you back? Speak to an experienced mortgage broker. They’ll get to know you and your circumstances, and will talk you through possible routes to home ownership.
FAQs
It is possible to get a mortgage in principle with poor credit, though it could be more challenging. In the last year, 21% of home buying customers with credit issues who spoke to our Mortgage Experts went on to receive an expert-verified mortgage in principle. And if we can’t help you ourselves, we will recommend one of our partners who may be able to help you find a suitable mortgage product.
Though a MIP is not a guarantee that you’ll get a mortgage, it does give an indication of whether or not lenders might be willing to accept your application. And, if so, how much they might be able to offer you.
A mortgage broker can help match you with suitable lenders who may have more flexible eligibility criteria for those with credit issues. They may also be able to recommend ways to improve your chances of success, such as reducing your debt levels or increasing your deposit amount.
If you’re still concerned your MIP application might be declined, our guide goes into more detail about what to do next.
It’s important that you only apply for a mortgage in principle with a broker or lender who uses a soft credit check, to ensure there’s no further impact on your credit score.
Apply for a MIP with brokers or lenders that use a soft credit check where possible
If you decide to opt for broker or lender who uses a hard credit check, space out MIP applications to avoid multiple hard searches in a short space of time
Check your credit report before applying, so you have a better idea of what to expect (checking your own report doesn’t impact your score)
If you do spot any issues, work on improving your credit score first to avoid a declined application either at MIP stage or beyond
Avoid applying for other credit as this could impact how much you might be able to borrow. Even if you’ve already secured a mortgage in principle, taking out additional credit may well cause issues when you go on to submit a full mortgage application
Lenders and brokers should state whether they use a soft or hard credit check on their website and during the MIP application process. You can also check their FAQs or terms and conditions to double check.
If you’re still not 100% certain what kind of credit check will be used, don’t be afraid to ask directly. Your broker should be happy to answer any questions you have - we’re certainly open to any questions here at Mojo.
When you apply for a mortgage in principle with Mojo Mortgages, we will ask the relevant credit reference agencies to provide us with information about you (such as your personal details and basic financial history). This will allow us to verify your identity and assess your eligibility and affordability.
You can read more about the use of personal information in relation to credit reference agencies in our Privacy Policy.
Yes, because a hard credit check will be used when you submit a full mortgage application. This helps your chosen lender to make a decision on your application, as they’ll have access to more in-depth information about your credit history and financial behaviour.
A hard search will normally stay on your credit report for 12 months and may slightly lower your credit score. However, it shouldn’t have too much of an impact unless multiple hard credit searches are recorded within a short period of time.
Too many hard searches can lower your score more significantly, and lenders may see you as a higher risk borrower. That’s just one of the reasons it’s recommended to avoid submitting lots of different mortgage applications with various lenders.
Instead, work with a mortgage broker who understands the market and can match you with a lender who’s most likely to accept your application.