Top 5 mortgage myths and misconceptions
Aside from advising our customers on the best possible mortgage product to suit their individual circumstances, it is our job as an independent mortgage adviser to offer truly personal advice that is honest and helpful.
At Mosaic Mortgages, we understand that there are many common misconceptions and myths swimming around the mortgage market, which ultimately puts many aspiring borrowers – usually first time buyers – off applying for a mortgage altogether.
We identify the top five common mortgage myths and urge borrowers to assume they are not eligible for an application.
Myth 1: Company directors and those who are self-employed can’t apply for a mortgage
Wrong. Although a lender will always bear in mind the stability of an applicant’s employment status, those who are self-employed are still eligible for a mortgage, as long as they can prove they have the capability to repay a loan.
This myth is derived from the fact that a self-employed individual has an income that is more varied than someone with a fixed salary individual.
Read our previous blog on employments statuses and mortgage eligibility for more information.
Myth 2: You can’t get a mortgage if you have a bad credit rating
Although your credit rating can hinder your mortgage application, having a poor credit history doesn’t necessarily mean you are not eligible for a mortgage.
However, a lender may believe that you are a greater risk and may therefore charge a higher interest rate if you have a bad credit rating but you can still apply for a mortgage.
Mosaic Mortgages offer bad credit mortgages, adverse credit mortgages and CCJ mortgage. If you have a bad credit history and you’re concerned about your eligibility then call us today for more information.
Myth 3: If you have a failed high street credit score you won’t be able to get a mortgage
Wrong. In actual fact, we can provide you with advice of how to improve your credit rating so that we can get you a high street mortgage as soon as possible. Visit our failed high street credit score page for more information.
Myth 4: Your bank will help you find a good deal
False. Even if you’d held your current account with the same bank for years, you can’t be sure that your bank is offering the best mortgage loan. Banks can only offer their own mortgage products and usually only give advice according to the mortgage products that they offer, not elsewhere.
That’s why we advise speaking to an independent mortgage adviser such as Mosaic Mortgages, so that we search through the entire mortgage market to find you the best deal possible.
Myth 5: Having a good, high-paid job will guarantee you to get a mortgage
This isn’t true. It all depends on your ‘creditworthiness’ and whether or not you have the capability to repay your loan. Visit our employer status blog for additional information.