Common mortgage misconceptions

Buying a home is exciting, but mortgage decisions can feel confusing—especially when you’re hearing mixed messages from friends, family, and online forums. The reality is that mortgage outcomes depend on your circumstances, not one-size-fits-all rules.

Below are some of the most common misconceptions that affect first-time buyers, home movers, and people considering remortgage options.

Myth 1: “You need a large deposit.”

Many people assume they must save a deposit large enough to cover a typical 10% of the property price—and that anything less is unrealistic.

In practice, deposit size is only one part of the picture. There are different routes into home ownership and different ways lenders may assess the overall risk. Some buyers use government-backed or shared-ownership style routes, which can reduce the deposit needed compared with buying 100% of a property.

What to focus on instead:

How much you can comfortably put down without stretching your budget
Whether your income and outgoings support the mortgage payments
The overall mortgage package (term, product type, and affordability)

Myth 2: “You can only get a mortgage from your current bank.”

It’s a common belief that sticking with your existing bank is the easiest way to get approved—and that their offer will automatically be the best one.

While your bank may be able to lend, it doesn’t follow that you’ll get the most suitable deal for your specific circumstances. Lenders have different underwriting approaches, and some may be more comfortable with certain property types, income patterns, or credit histories than others.

What to focus on instead:

Whether the lender can lend the amount you need
Whether the lender’s criteria match your situation
How the overall mortgage fits your goals (not just the headline rate)

Myth 3: “Bad credit means you can’t get a mortgage.”

Bad credit can make the process more complex, but it doesn’t automatically rule out a mortgage.

Mortgage lenders typically look at the details of your credit history—such as what happened, how long ago it was, and whether there are signs of improvement. The key point is that “bad credit” isn’t one uniform category.

What to focus on instead:

Understanding what lenders are likely to consider and why
Being realistic about how your credit history may affect options and pricing
Avoiding unnecessary applications that can complicate matters further

Myth 4: “You don’t need to think about mortgages until you find a property.”

Some buyers wait until they’ve found the home they want before considering mortgage planning. That can lead to last-minute surprises—such as discovering the purchase price is outside what you can borrow comfortably, or that the mortgage structure you assumed would work isn’t the right fit.

Mortgage planning earlier helps you understand what’s achievable and gives you a clearer framework for viewing properties.

What to focus on instead:

Your affordability based on your income and regular commitments
How much you may need for deposit and associated costs
The mortgage approach that best matches your timeline and risk comfort

Myth 5: “The best mortgage is the one with the lowest rate.”

A low headline rate can be tempting, but it isn’t the whole story. Mortgage products can differ in ways that affect your total cost and flexibility—such as the term, repayment structure, and how the mortgage may behave after any initial period.

What to focus on instead:

Total cost over time (not just the starting figure)
Whether the product suits your expected length of ownership
How changes in circumstances could affect you

Myth 6: “If I’m self-employed, I can’t get a mortgage.”

Self-employed borrowers often worry that their income won’t be viewed in the same way as a regular salary. While lenders may require more evidence, self-employed status doesn’t automatically prevent borrowing.

The assessment usually depends on the stability of your income, how it’s evidenced, and how your finances are structured.

What to focus on instead:

Having clear documentation of income and expenses
Understanding how lenders may assess earnings
Choosing a mortgage approach that reflects your income pattern

Myth 7: “A mortgage offer means everything is guaranteed.”

Mortgage offers are based on information provided and assessments made at the time. Changes—such as alterations to the property details, your financial position, or the supporting documents—can affect the outcome.

What to focus on instead:

Keeping information accurate and up to date
Responding quickly to requests for documentation
Understanding that the process may involve checks beyond the initial decision

Myth 8: “Remortgaging is only for people who want a lower rate.”

Remortgaging can be used for different reasons, not just rate reduction. Some borrowers remortgage to change their term, adjust monthly payments, consolidate certain debts, or release equity for a specific purpose.

What to focus on instead:

Your reason for remortgaging and how it affects the best structure
Any costs that may apply when switching products
Whether your new mortgage aligns with your medium-term plans

The takeaway: mortgage myths usually miss the real variables

Most misconceptions come from treating mortgages like a single rule applies to everyone. In reality, lenders consider a range of factors—your affordability, credit history details, income type, and the property itself.

If you’re planning a purchase, moving home, or considering a remortgage, the most useful approach is to build a clear picture of your situation and compare options based on what fits your circumstances—not what’s commonly assumed.

Common mortgage misconceptions