Does getting a mortgage decision in principle affect my credit score?

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Whether a mortgage decision in principle affects your credit score depends entirely on which type of credit check the specific lender uses, and this varies between lenders in a way that is not always obvious upfront. **Soft credit checks -- the more common approach** Most mainstream mortgage lenders use a soft credit check (sometimes called a soft search or soft footprint) for an initial decision in principle -- this lets the lender see enough information to give an indicative lending decision, but it is not visible to other lenders, does not appear as a formal application on your credit file, and does not affect your credit score, regardless of how many soft-search decisions in principle you obtain. **Hard credit checks -- less common but more impactful** Some lenders instead use a hard credit search even at the decision in principle stage, which behaves like a real credit application -- it IS recorded on your credit file, is visible to other lenders who check your file, and can have a small negative effect on your credit score, particularly if you accumulate several hard searches in a short period, since multiple recent applications can make you look like you are seeking a large amount of credit simultaneously to future lenders. **Why this matters if shopping around** If you are comparing decisions in principle from several different lenders to find your best options before committing to a full mortgage application, it is worth checking in advance whether each lender uses a soft or hard search for their decision in principle process -- applying to five lenders that all use hard searches within a short period could leave five separate hard search marks on your credit file, potentially affecting how your file appears to the lender you eventually choose for your full application. **Worked example** A first-time buyer applies for decisions in principle from three different lenders while comparing rates. Two of the lenders use soft searches, leaving no visible trace and no effect on the buyer's credit score. The third lender uses a hard search, which is recorded on the buyer's credit file -- if the buyer then applies to a fourth, different lender for their full mortgage application shortly afterwards, that fourth lender will be able to see the earlier hard search from the third lender, though a single additional hard search is unlikely to cause serious problems on its own. **The full mortgage application always uses a hard search** Regardless of whether the decision in principle stage used a soft or hard search, the FULL mortgage application (once you have a property and are proceeding to a formal offer) will always involve a hard credit search as part of full underwriting -- this is unavoidable and expected as part of any genuine mortgage application process. **How to check which type a lender uses** Most lenders state clearly on their website or application form whether their decision in principle uses a soft or hard search -- if this is not clear, it is worth asking the lender or a mortgage broker directly before applying, particularly if you are planning to compare several lenders' decisions in principle before choosing where to make your full application. **Practical tip** If you want to compare several lenders' indicative offers without risking any impact on your credit file, specifically seek out lenders known to use soft-search decisions in principle, or use a mortgage broker who can often obtain comparable indicative figures across multiple lenders using only soft searches, reserving any hard search for the single lender you eventually choose to proceed with formally.

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