I emphasize that even if a mortgage lender does a “soft” search in the policy decision, it is replaced by a “hard” search as soon as you apply for a full mortgage. Most (but not all) policy reviews are recognized as a “request” and not as an application. Credit search leaves a “soft footprint” in the credit report and has no impact on credit scores because it is not seen by other organizations that conduct research. However, depending on the lender and the level of information they need to access to make a policy decision, they may, in some cases, leave a “heavy imprint” on the credit data series, which may affect its score, as other lenders may view this information. The selected lender can advise whether or not its methods leave a mark. This is a preliminary agreement to provide you based on the information you shared with the lender to calculate the amount of the mortgage that you think you can afford. This agreement in principle does not constitute a loan offer and you should only make a legally binding commitment when you have applied for and received a loan offer. The agreement in principle is sometimes referred to as a decision in principle (DIP). The Barclays Consumer Site offers a “soft search” but is a diluted agreement in principle, in which only a few credit data are verified, this is not a complete decision-making principle and could be misleading. For a reliable complete decision that leaves a “hard” footprint, you need to talk to a Barclays Advisor or an independent mortgage broker like Niche Advice.
“An AIP agreement in principle” can mean different things to different mortgage lenders; Some consider this to be a first oral indication, i.e. They present the scenario (usually the most important points) and an underwriter gives a verdict. For example, you could reveal that you had a loss of $250 on a water bill, it does not follow that the mortgage lender must carry out a credit check to confirm what you have already said, they simply comment on the probability that this is accepted. The first stage of a mortgage is an agreement in principle (AIP) and may include a credit check depending on the mortgage lender. However, over the years, this process has turned into a “policy decision,” which will almost certainly include a credit check and, often, the validation of your credit score. This process usually involves an automated computerized decision on the front-end and can lead an underwriter to verify that it is borderline. Mortgage lenders that operate on the basis of a “hard” search can allow you to change the facts in the decision in principle with a certain schedule.