Scary mortgage myths debunked

The spookiest season is upon us! Halloween conjures visions of haunted houses, eerie creatures, and spine-chilling tales. But as you dive into the thrilling quest for homeownership, beware—the real monsters are the mortgage myths lurking to haunt your dreams! Let’s unmask the scariest misconceptions that might be creeping around in your mind.

 

Myth 1: You Need a 20% Deposit for a Mortgage

Boo! This myth can send shivers down the spine of any first-time buyer. Many believe that a 20% deposit is the golden rule, but the truth is far less frightening. In reality, there are numerous mortgage options available that allow you to buy a home with a deposit as low as 5% (there are even some options at 0% deposit, spooky!).

 

Myth 2: Your Mortgage Credit Score Must Be Perfect

Ghostly whispers about credit scores can keep many potential buyers awake at night. While a good credit score certainly helps, you don’t need to have a flawless record to secure a mortgage. Lenders often consider various factors, including your overall financial behaviour and recent improvements, rather than just focusing on a single number. Even if your score is not perfect, specialist lenders may be willing to work with you, especially if you can demonstrate recent financial responsibility. However, here’s how you can improve your credit score.

 

Myth 3: All Mortgages Are the Same

This myth is as misleading as a haunted house! Just like not all ghosts are scary, not all mortgages are created equal. There are several types of mortgages to choose from, including fixed-rate, variable-rate, and interest-only options. Each has its own pros and cons, and what works for one person might not work for another. It’s essential to research and find the mortgage that best fits your financial situation.

 

Myth 4: You Can’t Get a Mortgage If You’re Self-Employed

As scary as it sounds, many self-employed individuals believe they are doomed to wander the realms of renting forever. However, this isn’t true! While it may take a bit more work to prove your income (think of it as navigating through a haunted maze), self-employed applicants can and do secure mortgages. Lenders typically look for a solid income track record, usually requiring at least two years of accounts or tax returns, although some require even less.

 

Myth 5: The Best Mortgage Deal is Always Through Your Bank

Beware the trap of loyalty! Many homebuyers assume their bank offers the best mortgage deals simply because they’re a customer. However, this isn’t necessarily the case. Shopping around can unveil much better rates and terms. Consider consulting a mortgage broker, who can help you navigate the many options and find the best fit for your needs.

 

Myth 6: Always Choose the Lowest Mortgage Interest Rate

While it’s tempting to chase the lowest interest rate like a witch on a broomstick, this isn’t always the best strategy. Sometimes, the lowest rate comes with higher fees or stricter terms. It's essential to consider the total cost of the mortgage over its term, including any fees and penalties. Assess the overall package rather than just focusing on the interest rate to avoid future frights.

 

Conquer Your Fears and Embrace Homeownership With Klink!

This Halloween, is the perfect time to dispel these mortgage myths and set yourself on the path to homeownership. Don’t let fear hold you back—by understanding the facts, you can make informed decisions and find the right mortgage for your needs and we’re here to guide you.

So grab your pumpkin spice latte, pull out your checklist, and get ready to tackle the housing market with confidence. With the right knowledge and a little courage, you’ll be well on your way to turning your homeownership dreams into reality! Happy Halloween, and may your journey to the housing ladder be filled with treats, not tricks! 🎃🏡