10 mortgage myths debunked

Getting a mortgage can feel like a maze of jargon, rules and “everyone knows…” statements. The problem is that myths can lead you to make the wrong assumptions about what you can afford, what lenders may consider, or when you should start the process.

This guide tackles 10 of the most common mortgage myths home buyers come across—so you can approach your application with clearer expectations and a smarter plan.

1) “You can’t get a mortgage with bad credit”

Bad credit can make borrowing harder, but it doesn’t automatically mean you’re out of options.

What matters is the type of credit issue, how recent it is, and how your overall finances look now. Different mortgage products and lenders may assess applications differently.

What to do instead: focus on understanding your current credit profile and the most suitable mortgage routes for your situation, rather than assuming a single “bad credit” label ends the conversation.

2) “You can’t get a mortgage if you’re self-employed”

Self-employment can add complexity because income can be less predictable than a standard salary. However, it’s still possible to get a mortgage.

Lenders typically want to see evidence of income and affordability—often based on accounts, tax calculations and/or trading history—rather than relying on payslips alone.

What to do instead: be prepared to show how your income is calculated and how it supports your mortgage payments.

3) “You can only get a mortgage from your current bank”

Your existing bank may offer convenience, but it doesn’t mean it’s the best deal for you.

Mortgage pricing and product availability vary across lenders. Even if your bank is competitive, there’s no rule that you must use them.

What to do instead: compare options across the market and consider how different lenders assess affordability and risk.

4) “If you can’t borrow enough, you’ll need a big deposit”

A larger deposit can reduce the loan-to-value (LTV) and may improve the range of options available. But it isn’t the only lever you can pull.

Depending on your circumstances, there may be other ways to make the numbers work (for example, shared ownership arrangements or other support structures), but availability depends on eligibility and lender/product rules.

What to do instead: explore all the routes that can affect LTV and affordability, rather than assuming the only answer is “save more”.

5) “A lower interest rate always means a cheaper mortgage”

A lower rate can be attractive, but the total cost depends on more than the headline figure.

Key factors include:

• whether the rate is fixed, variable or tracker
• the length of the mortgage term
• any product fees
• how the repayment structure affects your overall cost

A deal with a lower rate might come with higher fees, or repayment expectations that change later.

What to do instead: compare mortgages on overall cost and repayment expectations, not just the rate.

6) “Shopping around could hurt your credit score”

It’s true that credit searches can appear on your credit file. The impact depends on what kind of search is made and how it’s recorded.

Many mortgage processes involve checks designed to assess suitability. However, making repeated full applications without understanding the likely outcome can be unhelpful.

What to do instead: take a structured approach to checking options, and avoid making repeated full applications without understanding the likely outcome.

7) “Young people can’t get on the property ladder”

First-time buyers often face deposit pressure, but age alone doesn’t prevent you from buying.

There may be mortgage options and government-backed routes that can help make home ownership more achievable—particularly where deposit size is the main barrier. Eligibility depends on the specific scheme and your circumstances.

What to do instead: focus on the affordability picture (income, commitments and deposit) and the options that can reduce the deposit requirement.

8) “There’s no point looking into mortgages until you’ve found a property”

Waiting until you’ve found a home can be tempting, but it can also slow you down.

Looking into mortgage options early can help you understand what you might be able to borrow, what documents you may need, and which mortgage features suit your plans.

What to do instead: get clarity on your borrowing potential and the process timeline before you start viewing seriously.

9) “Mortgage repayments cost more than rent”

Rent and mortgage repayments aren’t directly comparable in every case, because they serve different purposes.

Mortgage repayments typically build equity in the property, whereas rent is paid to the landlord and doesn’t reduce a loan balance. Mortgage costs also depend on the interest rate, term and deposit.

What to do instead: compare like-for-like where possible—consider total monthly outgoings and the longer-term impact of owning versus renting.

10) “Your parents can only help if they’re rich”

Family support doesn’t always have to be a large cash gift.

There are ways families can help that may involve shared responsibility or support structures, depending on the arrangement and the lender’s rules.

What to do instead: discuss what support could realistically look like and consider the financial implications for everyone involved.

The takeaway: myths are rarely the whole story

Most mortgage myths come from one of two places: outdated information or oversimplified assumptions. In reality, lenders look at affordability, credit history, income evidence and the specific mortgage product.

If you’re planning to buy, the most useful approach is to replace “myth thinking” with a clear view of your finances and the options that could fit your circumstances.

If you’d like help understanding your options, our brokers can talk you through the process and what to consider for your situation.