diff --git a/app/routers/applications.py b/app/routers/applications.py
index cbf6fa9c..a4264189 100644
--- a/app/routers/applications.py
+++ b/app/routers/applications.py
@@ -544,10 +544,7 @@ async def lapse_application(
         Depends(
             dependencies.get_scoped_application_as_user(
                 roles=(models.UserType.FI,),
-                statuses=(
-                    models.ApplicationStatus.SUBMITTED,
-                    models.ApplicationStatus.STARTED,
-                ),
+                statuses=(models.ApplicationStatus.STARTED,),
             )
         ),
     ],
diff --git a/tests/routers/test_applications.py b/tests/routers/test_applications.py
index 1747c4f8..cb76f310 100644
--- a/tests/routers/test_applications.py
+++ b/tests/routers/test_applications.py
@@ -420,7 +420,7 @@ def test_lapse_application(client, session, lender_header, pending_application):
     assert response.status_code == status.HTTP_422_UNPROCESSABLE_ENTITY
     assert response.json() == {"detail": _("Application status should not be %(status)s", status=_("PENDING"))}
 
-    pending_application.status = models.ApplicationStatus.SUBMITTED
+    pending_application.status = models.ApplicationStatus.STARTED
     session.commit()
 
     response = client.post(f"/applications/{pending_application.id}/lapse", headers=lender_header)