Mortgage Myth Buster: Separating Fact from Fiction

The mortgage world is full of misconceptions that can leave buyers confused or hesitant. Let’s set the record straight on some of the most common mortgage myths.

Myth 1: You Need a 10% Deposit to Get a Mortgage

Truth: While a larger deposit can secure better rates, many lenders now offer mortgages with as little as 5% deposit. Some lenders are going even further with up to 100% LTV lending on products such as Skipton's Track Record Mortgage.

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

Truth: Self-employed applicants may need to provide additional proof of income documents such as two years’ worth of accounts or tax returns, but they are just as eligible as salaried employees (MoneySavingExpert). In addition, it is possible to get a mortgage with only a single year of finalised figures, subject to eligiblity and assessment.

Myth 3: The Lowest Interest Rate is Always the Best Deal

Truth: A low rate is important, but factors like fees, flexibility, and repayment terms can make a big difference. Always check the true cost of the mortgage over its full term (Which?). A mortgage broker will always make sure that the recommended deal is the cheapest overall option for you.

Myth 5: You Should Stay With Your Current Lender When Remortgaging

Truth: Loyalty doesn’t always pay in the mortgage world. Shopping around can often secure a better rate than simply accepting your lender’s renewal offer (Money.co.uk). In addition, a mortgage broker can usually help you even if the best option is to stay with your existing lender so it makes sense to always go through a broker.