Buyers in Brighton are often surprised when a mortgage application is rejected after receiving an Agreement in Principle. An AIP can feel like confirmation that everything is approved, but in reality it is only an early indication based on limited checks.
This article explains why mortgage applications fail after an AIP, what lenders reassess during the full application, and how buyers in Brighton & Hove can reduce the risk before committing to a property.
What an Agreement in Principle Really Means
An Agreement in Principle is not a mortgage offer. It is usually based on declared income, estimated outgoings, and a soft credit check. Lenders do not fully assess bank statements, supporting documents, or the property at this stage.
Once a full application is submitted, every assumption is tested.
Affordability Changes After Full Assessment
In Brighton, affordability is one of the most common reasons applications fail. Property prices are higher than many surrounding areas, which means lenders apply tighter stress testing.
- Car finance and PCP agreements reducing borrowing power
- High living costs impacting disposable income
- Childcare, commuting, and lifestyle spending being fully assessed
- Variable income being reduced or excluded
- Higher interest rate stress testing
Credit Behaviour That Causes Declines
Lenders focus on recent behaviour, not just credit scores. Even applicants with strong scores can be declined if their credit usage raises concerns.
- High credit card utilisation
- Recent missed or late payments
- New borrowing after the AIP was issued
- Regular overdraft reliance
- Multiple recent credit searches
Property Issues Common in Brighton & Hove
The property itself is often the deciding factor. Brighton has a high proportion of flats, conversions, and seafront buildings, all of which can attract extra scrutiny from lenders.
- Short lease lengths on flats
- High service charges reducing affordability
- Ground rent clauses lenders dislike
- Converted properties with limited documentation
- Down-valuations on premium or seafront homes
Employment and Income Evidence Problems
Brighton has a diverse workforce, including self-employed professionals, freelancers, and contract workers. While this is not a barrier, lender criteria vary significantly.
- Probation periods or recent job changes
- Self-employed income not aligning with tax returns
- Bonuses or commission lacking consistency
- Multiple income streams not accepted by all lenders
How Buyers Can Reduce the Risk of Rejection
Most mortgage rejections are avoidable with better preparation.
- Review bank statements early
- Reduce unnecessary credit commitments
- Avoid taking out new credit after an AIP
- Prepare documents before applying
- Check property details early, especially on flats
Speak to Us Before You Apply in Brighton
If you are buying in Brighton & Hove and want to avoid a failed mortgage application, speaking to someone before applying can save time and stress.