In this brief guide we answer the question “can you get more than one decision in principle”.

Can you get more than one decision in principle?

Yes, you can get more than one decision in principle but it may not be advisable to do so due to the fact that applying for more than one or many decision in principle letters from different mortgage lenders may damage your credit score.

This is because when you apply for multiple credit offers (which a mortgage in principle is, in theory) this could appear to the credit bureau as if you are desperate to get credit and hence the credit bureau will reduce your credit score to indicate that you are now less creditworthy.

Applying for more than one decision in principle could also mean that you increase the likelihood of getting rejected. Getting rejected for credit will also damage your credit score and make it much harder for you to get credit in the future.

Having more than one decision in principle could also affect a mortgage lenders decision to lend to you as they may feel you were desperate to get a mortgage and question why.

You may be able to get a mortgage lender to remove the decision in principle searches on your credit file if they appear publicly to others but there is no guarantee that a mortgage lender will do this.

A decision in principle mortgage check is usually carried out with a soft credit check which is only visible to you.

This means that although you can get more than one decision in principle, you may prefer not to do so but if you are confused or unsure then you should consider seeking independent financial advice from a mortgage broker.

Advantages of getting more than one decision in principle

  • May save time
  • May provide you with more mortgage options

Disadvantages of getting more than  one decision in principle

  • May damage credit score
  • May affect your ability to get a mortgage

Why is a decision in principle important?

A decision in principle is important as it proves to home sellers and estate agents that you are indeed a serious buyer.

A decision in principle is also important as it gives you an initial indication on whether a mortgage lender may be willing to lend you and the maximum they may be willing to lend you.

Use a mortgage broker to get a decision in principle

You may want to consider using an independent mortgage broker to get a decision in principle and then a mortgage offer.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide we answer the question “can you get more than one decision in principle”.

If you have any questions or comments please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.