Mortgage Myths That Could Be Costing You Money

Mortgages can feel complicated, and with so much information online, it is easy to pick up half-truths or outdated advice. Unfortunately, believing some of the common myths around mortgages could mean missing out on opportunities or paying more than you need to.

Here are a few of the biggest misconceptions we hear, and the reality behind them.

Myth 1: You Need a Huge Deposit to Buy a Home

Many people believe you need at least 20% saved up to get a mortgage. While a bigger deposit often gives you access to better rates, some lenders will accept as little as 5%. Government-backed schemes and specialist products also exist to help first-time buyers with smaller deposits.

Myth 2: If You’re Self-Employed, You Can’t Get a Mortgage

Being self-employed can make the process a little different, but it does not stop you getting a mortgage. Lenders will usually ask for two or three years of accounts or tax returns to show your income is reliable. A good broker can help present your finances in the best way.

Myth 3: Once You Get a Mortgage, You’re Stuck With It

Many people think that once they have a mortgage, they are tied in for the full term. In reality, lots of borrowers remortgage when their fixed rate ends, or even earlier if it makes financial sense (though early repayment charges may apply). Remortgaging can reduce monthly costs if better deal is available or release funds for home improvements.

Myth 4: All Mortgage Lenders Offer the Same Deals

Not true. Lenders have different criteria and rates, and they change frequently. The product that suits one person may not work for another. Comparing across lenders, or working with an adviser who has access to a broad range of products, can open up better options.

Myth 5: Your Credit Has to Be Perfect

A less-than-perfect credit score does not necessarily mean you will be declined. Some lenders specialise in helping people with credit issues, though rates may be higher. Building up your credit profile by paying bills on time and reducing outstanding debt can improve your options.

Why Believing Myths Costs Money

These myths matter because they can put people off applying for a mortgage, delay homeownership, or stop them from finding a product that suits them. In some cases, borrowers stay on higher rates longer than necessary because they do not realise there may be better choices.

Mortgages do not need to be confusing, but misinformation can make them seem more daunting than they are. By separating fact from fiction, you can make more informed decisions and avoid paying more than you should.

For more information, please get in touch.