When it comes to taking out a mortgage, there are lots of myths flying about – especially when it comes to that all-important deposit.
We’re here to bust those mortgage myths and help you onto the property ladder.
- You need a huge deposit to get a mortgage
There’s a prevailing belief that you need a massive deposit to be approved for a mortgage. While it is true that a larger deposit means lower monthly repayments and usually a better rate, it is certainly untrue that a large deposit is a prerequisite to getting a mortgage.
In April, the government launched a 5% deposit scheme, which is designed to help those struggling to save up enough money for a deposit on a typical mortgage.
- Once you’ve saved up for a deposit, that’s it
Many buyers mistakenly believe that once they have their deposit saved, that’s it. Unfortunately, there are a range of other upfront costs buyers must pay before purchasing a property, including legal fees, mortgage fees, Stamp Duty and surveyor’s fees. If you use an estate agent to find your home, you will also need to take this cost into account.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.