Declined Agreement in Principle First-Time Buyers

Podcast approved by The Openwork Partnership on 17/04/2026.

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

There are a few reasons why an AIP might be declined, and more often than not, it does come down to your credit history or financial situation.

Lenders want to see that you can reliably afford your repayments, so missed payments, high credit utilisation or outstanding debts could affect this decision.

For first-time buyers, even a short credit history can make it harder for lenders to assess risk – so it’s not uncommon for a lack of history to play a role.

Is it common for first-time buyers to have an AIP declined?

It’s fairly common. First-time buyers naturally have no prior mortgage history, and some lenders are more cautious if your credit history is limited, or if you’ve only recently started building credit.

It doesn’t mean you won’t be approved. It just might require a little more preparation or looking at lenders that are more first-time buyer-friendly – and that’s where a broker comes into it. We know the lenders that are more flexible with first-time buyers where you’re more likely to pass.

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

Absolutely. Lenders rely on evidence of responsible borrowing. Not taking out loans, credit cards or any other credit before is good, because you’re not getting yourself into debt. But the downside is that lenders have less data to judge your repayment behaviour on, which could make them a little more cautious.

Some lenders specialise in first-time buyers and understand that situation – and a broker can help you find those.

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

Yes, employment status is a key factor. A full-time permanent position is generally viewed more favourably than part-time, temporary contracts or zero hours. Being on probation or having a short employment history can also affect a lender’s decision – because they want income stability.

Some still accept non-traditional employment, but might require extra documentation. For contract workers, they’ll look for a longer employment record. They might need you to have 12 or 24 months’ contracting history before they accept that income.

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

It’s possible, definitely. Doing it on your own can mean you’re flying blind. A broker, meanwhile, will vet all the information and make sure it’s declared correctly on application forms. Lenders need accurate information and supporting documents like payslips, bank statements and ID verification.

If anything is missing or inconsistent, it could trigger a decline. It’s always worth double-checking your submission, and following up with a broker or a lender to confirm that nothing’s been overlooked and everything was entered correctly on the application.

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

Yes, definitely. It’s always worthwhile reviewing your credit report prior to submitting an application just to check if there’s any errors. You can ensure all outgoings are declared accurately to the lender.

That reduces the risk of commitments being double-counted, if there’s a discrepancy between the figures declared on the application form and your credit report.

It’s also worth ensuring that all of your income and documents are accurate, and that you provide additional evidence like proof of savings or regular income. A broker can flag any weak areas before reapplying.

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

Potentially, yes. Each lender’s got its own rules around affordability, credit scores, employment types and deposit size.

Credit score in particular is a little misleading, because each lender has their own internal scoring matrix that they use to assess applications. So when we’re talking about credit score, we’re not necessarily referring to the numbers you see on a report from Experian report or Equifax.

It’s more about the score your application generates on the lender’s internal credit matrix.

It could be that you haven’t met lender A’s score, but you might fit with lender B.

Just because it declines, it doesn’t mean you’re ineligible. You might not meet that particular lender’s criteria, but another one might be happy to lend.