Here are common mortgage myths debunked to help you navigate the home-buying process confidently. Chat with us to go into these in detail and for advice specific to your circumstances.
 
Myth: You Need a Huge Deposit (at least 20%)
Reality: While a larger deposit can get you better rates, many mortgages are available with lower deposits:

• 95% Loan-to-Value (LTV) mortgages require just a 5% deposit.
• Government schemes like Help to Buy, Shared Ownership, or the First Homes Scheme support buyers with small deposits.

Myth: You Need a Perfect Credit Score
Reality: Lenders assess your overall credit history, not just your score. Even with some missed payments or defaults, you may qualify for specialist mortgages. Improving your credit profile with small steps (like paying bills on time) helps, but it’s not the only factor.

Myth: Self-Employed People Can’t Get Mortgages
Reality: Self-employed applicants need to provide more evidence of income stability, such as:

• At least 1-3 years of accounts or tax returns.
• A reference from an accountant.
• Bank statements.

Many lenders offer products tailored for the self-employed, freelancers, and contractors.

Myth: Student Loans Will Disqualify You
Reality: Student loans in the UK are treated differently from other debts. Lenders factor your monthly repayment into your affordability calculations, but it doesn’t count against you as heavily as other liabilities.

Myth: You Should Always Choose a Fixed-Rate Mortgage
Reality: Fixed-rate mortgages offer stability, but they may not always be the best choice.

• Variable-rate mortgages (e.g., tracker or discounted rates) may be cheaper in certain interest rate climates.
• Consider your plans—if you’re moving soon, a shorter-term deal might save you money.

Myth: You Can’t Get a Mortgage with Bad Credit
Reality: Specialist lenders cater to those with poor credit histories, though rates may be higher. Over time, improving your credit can help you remortgage to a better deal.

Myth: It’s Impossible to Get on the Property Ladder as a First-Time Buyer
Reality: First-time buyers have access to schemes like:

• Help to Buy ISA or Lifetime ISA (LISA) for savings boosts.
• Shared Ownership, letting you buy a portion of a property and rent the rest.
• First Homes Scheme, offering discounts on selected new-build properties.

Myth: Changing Jobs Means You Can’t Get a Mortgage
Reality: While job stability helps, it’s not a dealbreaker. Lenders often ask for 3-6 months of payslips, but some will accept a new job with an employment contract as proof.
 
Myth: The Bank You Bank with Is the Best Choice for a Mortgage
Reality: Loyalty doesn’t always mean better deals. Shopping around for mortgages and using a mortgage broker can uncover better rates and products tailored to your needs.
 
Myth: You Can’t Overpay Your Mortgage Without Penalties
Reality: Many UK lenders allow you to overpay up to 10% of your outstanding balance annually without penalties. Check your specific mortgage terms.
 
Myth: You Can’t Get a Mortgage After Bankruptcy or Debt Issues
Reality: Bankruptcy or CCJs (County Court Judgments) don’t permanently bar you from getting a mortgage. Specialist lenders consider applicants 1-3 years after bankruptcy discharge, especially if you’ve rebuilt your financial stability.
 
Myth: Renting Is Always Cheaper Than Buying
Reality: While buying involves upfront costs, monthly mortgage payments are often lower than rent, especially as rents rise. Homeownership also builds equity over time, making it a worthwhile investment.
 
The mortgage market has options for a wide range of circumstances. If you’re unsure, consulting us can help you find the best solution for your needs. What specific concerns are you dealing with? Hit reply-to to find out more!