Debunking the mortgage myths

Part of our job as your broker is giving you the facts.

Let’s go bust some mortgage myths with our adviser, Chris.

I think my credit score’s low, I can’t get a mortgage

I hear this a lot, but it’s only half right.

Score isn’t everything and there are loads of lenders that don’t even look at it, there’s a lot more emphasis on the content of your credit file.

You can have a low score if you haven’t used much credit in the past, for instance.

If there’s nothing negative, there’ll be deals available and even if you’ve missed a few payments in the past it’s worth checking your eligibility on our matcher.

I’m too old to get a mortgage

Not true.

In fact, lots of lenders now use common sense criteria on practical retirement ages and earned income past 75 can often be taken into account.

I’d say there are plenty of deals available with no max age, or much older than you’d expect.

Low interest rate is the best deal

The old favourite!

It’s true interest rate is the first place people look when they see a quote. But, we very rarely recommend the lowest rate. That’s because lots of fees and incentives factor into the true cost of a deal and the best rate doesn’t always represent best value.

We’ll talk you through:

  1. Type of deal: fixed or tracker – variable rates may be low now, but could be high in a few months
  2. Fees: some mortgages come with fees over £1,000 – over a two-year period that’s almost £50 a month extra in fees
  3. Cashback: You may find a deal that offers a cash lumpsum when you take out the mortgage. It may come in useful with the costs of moving but could mask a higher rate.

We’ll work all these variations out and give you a true monthly cost of each mortgage deal. It’s the clearest way to compare.

I’ve just changed job, I need to wait before applying for a mortgage

You probably don’t need to wait.

It’s now increasingly an outdated requirement and lenders recognise employed income isn’t more stable through length of service.

They appreciate that financial success now comes with moving between different employment opportunities and it’s not unheard of for lenders to be happy to accept a contract for a job you’ve not even started yet.

I don’t have a property in mind, so it’s too early to apply for a mortgage

It’s not too early to do something.

Sure, you can’t make an application until you’ve had an offer accepted, but it helps to be proactive.

You’ve probably used our online matcher to check what you can afford, and see what rates lenders could offer you in theory.

Also, you can even get a Decision in Principle (DIP) that let’s you get ahead of the game and can make you a more attractive buyer when the time is right.

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