As a Guildford mortgage broker that’s been getting mortgages for people across the UK for almost two decades, we’ve heard countless statements, claims and theories about mortgages – and mortgage brokers! – that simply aren’t true.
So, in a bid to debunk some of the myths around getting a mortgage in the UK, and to set the mortgage record straight, here are the five most common mortgage myths that we still, to this day, hear on a regular basis.
1. Poor credit rating, no mortgage
We often speak with people who’ve all but given up on getting a mortgage because they’re aware that their credit rating is poor. However, regardless of your credit rating, there’s always the chance that you can get a mortgage. As a specialist adverse credit mortgage broker, we have access to a wide range of adverse credit mortgages and a growing panel of adverse credit mortgage lenders. But maybe your credit rating isn’t quite as bad as you think it is, which might even mean you can access standard mortgages. If you are concerned, our advice would be to speak with a mortgage broker who can assess your credit rating and provide a selection of options. Or, read our article on getting a mortgage with bad credit.
2. Out of order
Another common misconception is that you need to find the property you wish to buy before you get a mortgage. Getting a mortgage is a bit like painting a house; much of the time and effort goes into the preparation. And when it comes to applying for a mortgage, there is a lot you can be doing in the way of preparation before you’ve found the property you wish to buy. For example, if you know your budget then you can look to get a decision in principle, which not only offers you reassurance in as much as it’s the lender stating that they are broadly happy to lend, but it will also show the estate agent that you’re serious when it comes to viewings. Read our article on getting prepared for getting a mortgage for more tips.
3. It’s impossible for self-employed people to get a mortgage
Getting a self-employed mortgage can be more challenging than it might be for those employed under PAYE – but it certainly isn’t impossible. Our team of Surrey mortgage brokers has developed a reputation for securing mortgages for self-employed people (not to mention mortgages for sportspeople and film industry mortgages). If you’re self-employed and are doubting your ability to get a mortgage, then read our article on how to get a self-employed mortgage. And if you’re still in doubt, contact one of our mortgage brokers in Guildford, who will allay your concerns within minutes.
4. Use a bank, not a broker
People often think that going direct to a lender is the best way to apply for a mortgage. However, one lender provides only one opportunity to get a mortgage. The mortgage application process still takes the same time, so why would you spend all that time on only exploring one potential avenue when you can spend the same amount of time and have access to multiple lenders and their products. Mortgage brokers also know how best to present your case; we know what information to major on and what to leave out. We can also spend time building your case before the application is submitted, which isn’t possible when you’re liaising with the lender directly. Read our article on banks vs brokers or the benefits of using a mortgage broker to get an understanding of the value that mortgage brokers bring to the mortgage application process.
5. You need a 20% deposit
Yes, a 20% deposit is considered the standard amount – but it’s not a hard-and-fast rule. Only recently, we covered the launch of the 100% mortgage and there are many mortgage products out there that enable people to apply for a mortgage with a small deposit. Government schemes such as Deposit Unlock also help people buy a home with as little as a five% deposit. Don’t be deterred by the 20% deposit mortgage myth. No two mortgage products are the same. You just need to find the one that works for you.
To discuss any aspect of applying for a mortgage, and to access the UK’s best mortgage deals, contact Complete Mortgages’ team of Guildford mortgage brokers on 01483 238280 or email info@complete-mortgages.co.uk.
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