Mortgage Myths Busted: 10 Things That Are Not True

Plenty of people put off buying, moving or remortgaging because of something they have heard about mortgages that is not quite true. Some of these myths cost people money; others stop them applying at all. Here are ten of the most common mortgage myths we hear, and what actually happens. Information was checked in November 2026.

Myth 1: You need a 20% deposit to buy a home

You do not. Many lenders offer mortgages with a 10% deposit, and some lend with a 5% deposit, subject to affordability and the property. A bigger deposit usually gets you a better rate, but waiting until you have 20% is not always necessary. Family can also help with a gifted deposit. See our first-time buyer checklist.

Myth 2: Self-employed people struggle to get a mortgage

Self-employed borrowers get mortgages every day. Many lenders want two years of accounts or SA302s and tax year overviews, and some will consider one full year. What matters most is choosing a lender that assesses your type of income in the most favourable way. The same applies to contractors and locum doctors. See self-employed mortgages.

Myth 3: Using a broker costs more than going direct

Not with us. Our mortgage advice is fee-free. As a whole-of-market broker we can compare deals from across the market, including some that are only available through brokers, and we are typically paid a commission by the lender when your mortgage completes. For large commercial loans or particularly complex cases a fee may apply, and it is always agreed with you before we proceed.

Myth 4: Your own bank will give you the best deal

Your bank may offer you a competitive rate, but it can only offer its own products. Lenders also differ widely in how they treat bonuses, overtime, self-employed income and credit history, so the lender that suits you best may not be the one you bank with. See product transfer or remortgage?

Myth 5: Bad credit means you cannot get a mortgage

A missed payment, default or CCJ can narrow your options, but it does not automatically rule you out. How recent the problem was, how much it was for and whether it has been settled all matter. Some lenders specialise in this area. See mortgages with bad credit.

Myth 6: You have to wait until your deal ends to remortgage

You can usually secure a new deal around six months before your current one ends, without an early repayment charge, because the new deal starts when the old one finishes. With mortgage rates rising, starting early can protect you against further increases. See can you remortgage early?

Myth 7: An agreement in principle means your mortgage is approved

An agreement in principle is a useful early indication, but it is not a guarantee. The lender still needs to check your documents, underwrite your application and value the property before issuing a formal offer. See AIP vs mortgage offer.

Myth 8: The lender's valuation tells you about the property's condition

The valuation is carried out for the lender, to confirm the property is suitable security for the loan. It is not a detailed inspection of the property's condition. For that, you need your own survey. See valuation vs survey.

Myth 9: You are too old to get a mortgage

There is no single age limit. Many lenders will lend into retirement if you can show the payments are affordable from pension or other income, and some have maximum ages well into the 70s or 80s at the end of the term. Options depend on your income in retirement and the lender's criteria.

Myth 10: Death in service from work means you do not need life cover

Death in service can be valuable, but it usually only applies while you work for that employer, and the amount may not be enough to clear a mortgage and support your family. Personal life cover stays with you if you change job. See life insurance for a mortgage and income protection explained.

Get the facts for your situation

Every mortgage case is different, and general rules do not always apply. If you are unsure whether one of these myths affects you, get in touch. Our first consultation is free and with no obligation, and our mortgage advice is fee-free. Confused by any of the terms? See our mortgage jargon buster.

Information in this article was checked in November 2026 and can change at any time. All lending is subject to the lender's affordability assessment, credit checks and property valuation.

Your home may be repossessed if you do not keep up repayments on your mortgage.