Uncovering the Truth

Few things confuse and scare people more than getting a mortgage. A big part of this is all the misconceptions that are floating around! From self-employed people never being able to own their own home to professional advice about mortgages being a waste of money, there are so many lies out there. So, let’s clear them up once and for all!

Using a mortgage broker is a waste of time

So many people say this. While you don’t have to use a mortgage broker, doing so will increase your chances of getting the best mortgage deal for you. They will ensure your application is in great shape and will find mortgages that are a great fit for you. This will hugely improve your chances of approval.

You can’t get a mortgage if you are self-employed

How many times have you heard this? Enough that if you are self-employed, it has probably put you off ever trying to get a mortgage. Thankfully, it’s not true! You just need to show 1 to 2 years proof of your income and have good records of your earnings. Some lenders even specialise in self-employed mortgages.

If you don’t have a huge deposit, you won’t be approved

A bigger deposit will open doors to lots of different mortgages, but you don’t need to have a huge downpayment. Some lenders are willing to approve borrowers with smaller mortgages, and brokers will be able to target your application at these.

Bad credit means you won’t be able to get a mortgage

Bad credit holds many people back from trying to get a mortgage. While a poor credit score can lead to you requiring a higher deposit or having to pay more interest, it is still possible to get approved. Of course, doing all you can to improve your credit score in the meantime will help!

You should always get a mortgage with your bank

If you have always used the same bank for your current account or savings, then it feels natural to go to them for your mortgage too. Stop right there, though! They might not have deals that are the right fit for you, and your choices might be limited. Check out your options with a broker instead.

It costs more to pay off a mortgage than rent

This is one that really does scare people off ever owning their own home. Paying off a mortgage is a big financial commitment, yes. Rents are rising, though, and you’ll keep paying for a home you will never own. Buying your own home is a much better investment in the long term.

What you should do now

There are many more mortgage myths out there. The best way of getting the truth and discovering what is possible for you is getting in touch with a mortgage broker. They’ll be able to give you all the advice you need.