You don’t need to think about mortgages until you’ve found your property - False
Sure, you won’t need to actually apply for a mortgage until you’ve had an offer on a property accepted. But you certainly need to have scoped out mortgages before then, to check what you can afford. Different lenders will offer different amounts, but a good way of getting an accurate idea of your budget is to apply for a mortgage ‘agreement in principle’ (AIP). This is a statement from a lender that they would, in principle, lend you a certain amount of money.
You’ll be able to get a mortgage if your rent costs more than a mortgage would - False
Mortgage repayments may be cheaper than your monthly rent, but that doesn’t necessarily mean you’ll get accepted by a lender. A lender will assess your income and outgoings to make sure you can afford the monthly repayments both now and if rates were to rise. We will be able to recommend the lender most likely to accept your application.
You can’t get a mortgage if you have a low credit score - False
Getting a mortgage can be difficult if you’ve got a bad credit history, but it’s not impossible.
Having a low credit score could just mean you have no credit history. However, there is a difference between a bad credit history (due to missed loan payments or a default) and no credit history at all, which might be the case if you’ve never taken out credit or a loan. We are here to help you assess your credit history and suggest ways of improving it.
You can only get a mortgage from your current bank - False
Your bank might bombard you with adverts for its mortgage range and even offer preferential rates to you as an existing customer. However, with more than 80 mortgage lenders in the market, it’s worth shopping around before deciding who to apply with. There are thousands of mortgages available, meaning that finding the right deal can be overwhelming. We are here to help you find the right mortgage based on your personal situation.
Lowest interest rate always means the cheapest mortgage - False
The interest rate is just one of the factors influencing the overall cost of a mortgage. Many mortgages may have fees ranging from £0 to well over £1,000, making a big difference to the overall cost of the deal. Some deals have higher interest rates but offer cash when you take out the mortgage. We assess the OVERALL COST of the mortgage and recommend the best deal for you.
I’ve just changed job; I need to wait before applying for a mortgage - False
You probably don’t need to wait. There are lenders who will ask only for a copy of your new contract, meaning you can apply before you even have started your new job.