If your mortgage has been declined after an agreement in principle, book a 15 minute call and bring the decline letter. I will tell you within the call whether the case can move. Call 01425 203055 or WhatsApp 07731 675537.
HTG Mortgages
Mortgage Declined After an Agreement in Principle: Why and What Next
Last Updated: September 2026
Featured in The Telegraph • Daily Mail • The Times • Sky News
An agreement in principle is a quick check on your credit file and the numbers you typed in. The full application is where the lender reads your bank statements, verifies your income, values the property and looks at anything the first check could not see. A decline at this stage almost always comes from one of those four things, and most of them can be dealt with, either with the same lender or a different one. This page is part of my first time buyer mortgage hub.
The full application tests what the agreement in principle took at face value: income, statements, deposit source and the property
A one-line ‘does not meet our lending criteria’ is not the real reason. Lenders will usually tell the broker more than the applicant
A purchase usually survives a decline if a replacement offer can be produced within a few weeks
As featured in…
Meet your Advisor
Harry Goodliffe
- FCA Authorised
- Director & Mortgage Advisor
“I‘m not about confusing jargon or passing you from person to person. From our first chat to the day you get the keys, you’ll deal directly with me. I‘ll keep you updated, answer any burning questions, and do everything I can to make the whole process as stress-free as possible.”
Let’s Talk About Your Mortgage
What to do when a full application is declined
1
Step 1
Get the real reason
Ask the lender, or let me ask. If the decline is about a document or a figure, it may be fixable where you are. If it is a policy matter, that lender is a dead end and the case moves.
2
Step 2
Tell your solicitor
Tell your solicitor and the estate agent quickly, but do not withdraw. Most sellers will wait a few weeks if the agent is kept informed. If you have already exchanged contracts, speak to your solicitor the same day.
3
Step 3
Same lender or move
A corrected figure, a fuller explanation or a different property can bring a case back at the same lender. A bigger deposit or a smaller loan can bring it back inside their limits. Otherwise the case goes to a lender whose criteria fit.
4
Step 4
New application
A new application to the right lender can be at offer within two to three weeks in a straightforward case. I only ever submit once I have checked criteria, so the second attempt is not a second gamble.
About
Our approach.
Four things get checked at full application that the agreement in principle never touched
Income that does not verify: a lower basic salary on the payslip than declared, bonus or overtime that is not consistent, self-employed figures on the SA302 lower than the ones given. Bank statements: an overdraft that is always used, gambling that looks like a habit, payday loans, returned direct debits, or a commitment left off the form. Deposit source: money that cannot be traced, a gift that turns out to be a loan. And the property: a down valuation, a construction type the lender does not lend on, a short lease, a flat above certain commercial premises. Something new on the credit file between the two stages does it too. The most common reason I see for a decline after an AIP is a change of circumstances between the two stages: a job move, a new finance agreement, a dip in income. The AIP was right on the day it was issued; the full application is assessed on the day it goes in, and anything that changed in between is what the underwriter is reacting to.
Whole-of-Market Access
Whole-of-market comparison across 120+ lenders
One Flat Fee
A flat £350 fee, payable only once your mortgage offer is issued
Honest Advice
If the right answer is to do nothing, I will say so
Outside My Scope
I do not offer equity release
How I help
I find out the actual reason, decide with you whether the same lender can be persuaded or the case should move, and place it with a lender whose criteria match before a second application goes in. If there is no offer, there is no fee. See also how long a mortgage application takes and bad credit mortgages.
Who this is for
Buyers and remortgagers who had an agreement in principle, applied in full, and have been declined by the lender or told the case cannot proceed, especially where a purchase is waiting on the outcome.
Why use HTG’s mortgage services?
Monday to Friday 8am to 5pm, Saturday 8am to 1pm
We are an independently owned, whole-of-market mortgage broker offering first-charge mortgages
You deal with Harry directly, from the first conversation to completion
Let’s get your mortgage sorted
Written by Harry Goodliffe
Director & Mortgage Adviser, HTG Mortgages · FCA Authorised (1017945)
CeMAP Qualified · Featured in National Press · South England Prestige Awards 2026/27 winner