08-01-2025

Applying for a mortgage can feel daunting, especially with so much conflicting information out there. Many myths about mortgages can discourage potential buyers or make the process seem more complicated than it is. Let’s set the record straight by debunking five common mortgage myths and uncovering the truth behind them.

  • You Need a Large Deposit

Truth: While a larger deposit can give you access to better mortgage rates, it’s not always necessary.

Some lenders offer mortgages with as little as a 5% deposit, particularly for first-time buyers. Government schemes such as Help to Buy or shared ownership can also make it easier to get on the property ladder with a smaller deposit. Speak to a mortgage broker like Fox Davidson to explore options suited to your circumstances.

  • Self-Employed People Can’t Get a Mortgage

Truth: Self-employed individuals can absolutely secure a mortgage, though the process may require more documentation.Lenders will typically want to see evidence of consistent income over the last two to three years. This could include tax returns, accounts, or a letter from your accountant. Working with a broker experienced in self-employed mortgages can make navigating these requirements much smoother.

  • You’ll Always Be Offered the Advertised Rate

Truth: Lenders often advertise their best mortgage rates, reserved for applicants with strong financial profiles.

The rate you’re offered will depend on factors like your credit score, income stability, and loan-to-value ratio. Even if you don’t qualify for the lowest rate, a broker can help you find competitive deals tailored to your financial situation.

  • It’s Better to Stick with Your Current Lender

Truth: While sticking with your current lender might seem easier, it’s not always the most cost-effective option.

Remortgaging with a different lender could save you money, especially if your existing deal is coming to an end. A mortgage broker can compare options across the market and help you secure a better deal, even if switching lenders means additional paperwork.

  • You Should Wait for Interest Rates to Drop Before Applying

Truth: Trying to predict interest rate movements can delay your home-buying journey unnecessarily.

Rather than waiting for the “perfect” time, focus on finding a mortgage deal that works for you now. Many lenders offer the option to fix your interest rate for several years, providing peace of mind regardless of market fluctuations.

Navigating the Mortgage Market with Confidence

Understanding the facts about mortgages can help you approach the process with confidence. Whether you’re a first-time buyer, self-employed, or an experienced property investor, working with an expert mortgage broker can make all the difference.

Why Choose Fox Davidson?

At Fox Davidson, we specialise in providing tailored advice to help you find the right mortgage for your unique circumstances. Our team has experience working with first-time buyers, self-employed professionals, and property investors, ensuring a smooth application process.

Get in Touch

Ready to take the next step? Contact Fox Davidson today to speak with one of our mortgage specialists and start your journey to homeownership.