Declined Agreement in Principle First-Time Buyers

Podcast approved by The Openwork Partnership on 27/05/2026.

Why would my Agreement in Principle (AIP) be declined as a first-time buyer? Would the decline be due to my credit file or financial history?

An AIP could be declined for a few different reasons. It could be adverse credit, not meeting affordability or linked with the lender’s criteria.

If it’s down to credit, the best action is to check your credit file for any missed payments, defaults, County Court Judgments (CCJs) or a debt management plan. If it was a default, we need to know when it was registered, how much it was for and whether it has been paid off.

This is when a mortgage advisor comes in really handy. I get to know exactly what a client has on a credit file – and if there’s no adverse credit, the decline may be down to affordability.

We would then drill down into your income – is there any variable pay such as bonuses or commission? We’ll get clarity over the options available. There’s no need to worry when an Agreement in Principle has been declined. It’s all about understanding why so we can make an alternative plan.

Is this a common issue for first-time buyers? Do you see this a lot?

I wouldn’t say it’s massively common. When we work with first-time buyers, we make a recommendation that should be right first time.

Sometimes a first-time buyer comes to us having been declined elsewhere, in which case we find out exactly why. Then we put a plan together to get them the right mortgage product.

If they have been declined due to adverse credit, we’d look at the credit file and find a suitable lender for that, based on our experience.

Affordability can sometimes cause a decline, in which case we may just need to go to a different lender, or set the client’s expectations around their maximum borrowing. We can then increase their chances of mortgage success.

Does my lack of borrowing history affect the decision? Does being a first-time buyer with no previous mortgage affect my chances?

No, not normally. Not having a mortgage before doesn’t stop you getting one.

If you’re not sure where to start, reach out to us at The Mortgage Bubble and we can talk through your options. If lack of borrowing history meant you can’t get a mortgage, it’d be impossible to buy your first home – and that’s not the case at all.

Your borrowing history doesn’t have an effect, but any bad credit could. Again, this is where advice from a mortgage broker gives you clarity over the options available.

Would my employment type be a factor in the decline? Would my probation period or job length influence the decision?

Your employment is taken into account. If you’re full-time, for example, you’d be earning more than if you work part-time – so this could have a bearing on your maximum borrowing.

If you’re a contractor as opposed to being employed, certain lenders are better for that than others. Also, the length of time you’ve been continuously employed will also be a factor. Some lenders require you to have had six to 12 months of continuous employment, while others can accept less.

Continuous employment could mean having three jobs over the last 12 months and only being in your current job for a month. That’s fine. You don’t have to have been in a single job for six to 12 months. Again, it’s all about looking at the total circumstances to recommend the right lender for that individual.

How do I know if there was an issue with how I completed the application? Could I have missed uploading any documents?

If you’re using a mortgage advisor, we will request all the relevant documentation – such as proof of ID, passport and driving licence. We also need your last three payslips if you’re employed, or your last two years’ tax returns if you’re self-employed.

We go through those and match it up with the information you’ve given us. If anything doesn’t align, we check it with you pre-application.

If you’ve gone direct to a lender and you’ve put in the information you feel is accurate and shared your documents, the lender may come back with questions. The best tip is to always assess your own documents. Know your income beforehand and check that’s what you’re telling your broker or putting on the application. If they don’t match, it could cause a decline.

Is there anything I can do to clarify, correct or improve my application?

The best tip is to get your documents in order. If you’re employed, gather your last three months’ payslips and your last three months’ bank statements to show your salary being paid in.

If you’ve received annual bonuses and want to use them to borrow a bit more money, a lender will want to see a two year track record of those bonuses being paid. You would need to provide a payslip for each bonus.

If bonuses or commission are more regular, such as monthly, the last three months’ payslips will show those being paid. Lenders would take an average of those. A mortgage advisor can get you prepared by going through exactly what’s needed for that specific lender.

If you’re self-employed, you need slightly different documentation. It’s normally your last two years’ tax returns and tax year overviews. If you use an accountant, they can provide those or you can get them from the HMRC self-assessment portal.

Know your income and your expenditure on loans and credit cards. Have you got car finance, and if so how much do you pay a month? Check your credit file. The more prepared you are, the more information you can give a mortgage advisor or a lender, and the more chances you have for success.

Would the decline be based on a lender’s specific lending criteria?

Yes, it would be. All lenders have similar criteria, but they do have strengths and weaknesses around what they will and won’t accept. If you’re not a mortgage advisor, it’s a minefield.

If there’s anything you’re struggling with, get advice from a mortgage advisor. It will save you time. Instead of walking down the high street hoping someone will give you a mortgage, a broker has access to a comprehensive range of lenders. With your information, we can find the right lender for you.