Busting Common Mortgage Myths
When it comes to getting a mortgage, there are plenty of myths that can make the process seem more intimidating than it really is. Whether you're self-employed, have a small deposit, or a less-than-perfect credit score, it’s important to separate fact from fiction.
Let’s debunk some of the most common mortgage myths and set the record straight.
Myth 1: “I Can’t Get a Mortgage If I’m Self-Employed”
One of the most persistent misconceptions is that self-employed people can’t get a mortgage or that you need at least three years of accounts to qualify. The truth is that many lenders work with self-employed applicants and will consider your application with just one year of trading history.
While it’s true that being self-employed may require more documentation, it doesn’t make you ineligible. If you have a strong financial year, a stable business, and a clean credit history, some lenders will be happy to consider you with only 12 months of self-assessment tax returns (SA302s) and a Tax Year Overview from HMRC. Additional proof of future income, such as contracts or a growing client base, can also support your case.
Most lenders prefer at least two years of records to assess your income stability, but that doesn’t mean you’re out of options if you don’t meet that mark. Our mortgage advisers can help you find providers that understand the nature of self-employment and assess applications on a case-by-case basis.
Myth 2: “I Need a 10% Deposit to Get a Mortgage”
Although a 10% deposit is often quoted as a general benchmark, it's not a hard rule. In fact, there are several mortgage products available for buyers with a 5% deposit, and even a few with no deposit at all.
Many new build developers now offer schemes like Deposit Unlock and Own New, allowing you to buy a home with as little as a 5% deposit. These schemes are designed to support buyers who have strong affordability but low savings.
Another route is Shared Ownership, where you only buy a portion of the home (as little as 10% in some cases) and pay rent on the rest. Since you’re only purchasing part of the property, your deposit is based on your share, making it far more manageable.
If saving for any deposit is a challenge, a guarantor mortgage or a track record mortgage may be an option as these don’t require a deposit at all. With a guarantor mortgage, a family member uses their own savings or property as collateral. While this helps you get on the ladder, it's important to remember that both you and the guarantor are responsible for the repayments. A track record mortgage uses your history of paying rent to work out what you may be able to borrow.
Myth 3: “I Need a Perfect Credit Score”
Having a perfect credit score is not a requirement to get a mortgage. While a strong credit score does improve your chances and gives you access to better rates, it’s only one part of the equation. Different lenders use different credit agencies, so there’s no universal score that guarantees approval.
It’s worth reviewing your credit file before you apply to check for errors and opportunities for improvement. Simple actions like registering to vote, paying down debts, and avoiding new credit applications can all help boost your score. And if you’ve never used credit before, consider a credit-building card to establish a repayment history.
A less-than-perfect credit score doesn’t automatically disqualify you, it’s best to speak to one of our mortgage advisers who understand which lenders are open to more flexible credit histories.
Myth 4: “I Can’t Get a Mortgage If I Have a CCJ”
While a County Court Judgment (CCJ) can affect your mortgage application, it doesn't mean you won’t be approved. Some lenders specialise in working with applicants who have past credit issues, including CCJs.
Key factors that affect your eligibility include how recent the CCJ is, whether it has been satisfied, how much was owed, and how many judgments are on your file. Lenders who assess applications manually will consider the context around the CCJ rather than rejecting your application outright.
You’re more likely to succeed if you use a mortgage broker familiar with lenders who accept applicants with adverse credit. Our advisers know which providers offer the most competitive terms for your situation and can help you avoid unnecessary rejections.
If you’re still worried you might struggle or you have any questions speak to one of our mortgage advisers today and they will be able to advise you on the most suitable course of action for you.
*You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for arranging a mortgage. The actual amount you pay will depend on your circumstances. The fee is up to 1.5% but a typical fee is 0.3% of the amount borrowed.
