Don’t believe these mortgage deposit myths…
Taking out a mortgage is something thousands of us do every year, and yet misinformation about the mortgage process – and particularly deposits – is rife.
So, here are a couple of deposit myths you shouldn’t believe:
- You need a huge deposit to be approved
Many people believe you’ll only get approved for a mortgage with a hefty deposit, which means those with smaller deposits are discouraged from trying. While it’s true that a larger deposit will result in lower monthly repayments and often better rates, it is not the be all and end all. Indeed, the government recently launched a mortgage guarantee scheme for those with small deposits, enabling more people to get onto the property ladder.
2. Your deposit is your only major cost
When it comes to the cost of buying a property, many people only factor in the deposit as an initial cost. Unfortunately, there are a few other costs to consider that can really add up. Solicitors’, estate agents’ and surveyors’ fees can cost several thousands, while Stamp Duty means many buyers will also face a significant tax bill.
Let us help
Whether you need advice on saving for a deposit or help with finding the most suitable mortgage for your circumstances, let us help. Get in touch and we can help make your homeownership dreams a reality.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. You may have to pay an early repayment charge to your existing lender if you remortgage.