I’ve come to realise over the years that there are so many myths around getting a mortgage I’d thought I’d put together a little FAQ on mortgages.
If you had been reading the financial pages of the papers or listening to any money programme recently you may think that it is really hard to get a mortgage. And it is for some, but not for most of us.
I work closely with Response Mortgage Services Ltd for my clients. Here is a list of some of the many mortgage myths we have recently been told and some helpful truths!
Myth: I have only been self employed for 12 months and that means I can’t get a mortgage.
Helpful truth: As long as you have 1 year’s accounts or tax returns it is possible to get a mortgage.
Myth: I am working on a probationary period and that means I can’t get a mortgage.
Helpful truth: There are many lenders who will lend if you started your job only yesterday and are on a probationary period. It is our job to find the right one for you.
Myth: I only have a small deposit and that means I can’t get a mortgage.
Helpful truth: The bigger your deposit the better choice you have but it is possible to find mortgages with only a 5% or a 10% deposit, one lender has recently offered 100% mortgage, and some lenders are also able to include parents income into the equation.
Myth: I need my mortgage to run past my retirement date and lenders insist that the mortgage is repaid by the time I retire and that means I can’t get a mortgage
Helpful truth: Retirement age and the attitude to retirement has changed a lot over the last 10 years. It is possible to arrange a mortgage up to the age of 75 or 80 as long as you can demonstrate income in retirement and that you can afford the payments from you pension income. Even if you cannot provide the pension income there are other options that we can discuss with you.
Myth: We need to move to a bigger house for our growing family but cannot think of moving until we sell our current property. This means that I can’t get the mortgage for a new home.
Helpful truth: You will not be surprised to know that you are not the only person in this situation and as always the lending industry have created ways of having your house and moving. Just ask us for more details.
Myth: Lenders are looking at ways not to lend and I am concerned that if a lender declines my application that will make a difference to my credit rating and I will not be able to get a mortgage.
Helpful truth: A mortgage application that is declined may not make any difference to you but a history of poor credit will make a significant difference. Sometimes there may be something on your credit file that is untrue or that you have resolved but the record does not indicate the true position. Obtain your credit reference to see that it is up to date and correct.
I hope this helps bust some myths but if your query hasn’t been busted why not just give me a call? You can call me for a no obligation chat. Find out here how I work and how to contact me.