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Mortgages. They're loads of hassle. They're too confusing. They're too expensive. Or are they? If mortgage myths have got you mystified, don't worry you're not alone. Many first-time buyers (and even some people who have been there and done this all before) are put off by all the confusion and misconceptions floating around. Who can blame them?
That's why we're here to try and set the record straight on some of the most popular mortgage myths.
From hearing people talking about buying a house, you might think that mortgages take a long time to sort out. Actually, the 'mortgage' part of a house purchase can take as little as 6-8 weeks - but the rest of the buying process might not be so straightforward. Things like negotiating on price, getting surveys done, communication between different solicitors/conveyancers and being in a chain can slow things down, but it's different for every buyer. Quick house purchases arent completely unheard of and you could be one of the lucky ones (we'll keep our fingers crossed for you).
From hearing people talking about buying a house, you might think that mortgages take a long time to sort out. Actually, the 'mortgage' part of a house purchase can take as little as 6-8 weeks - but the rest of the buying process might not be so straightforward. Things like negotiating on price, getting surveys done, communication between different solicitors/conveyancers and being in a chain can slow things down, but it's different for every buyer. Quick house purchases arent completely unheard of and you could be one of the lucky ones (we'll keep our fingers crossed for you).
It's 2017 and mortgage lenders are catching up with technology. It used to be that when you needed a mortgage, you would have a meeting with a bank manager, book the day off work (as they would always be running late) and dress up in your smartest gear. But many mortgage lenders now offer mortgage advice over the phone, and some even use digital face to face technology to have a conversation. Doing it this way means they might not even seen you so you could be there in your pyjamas and they wouldnt even know it. Most can arrange appointments outside of working hours and even on weekends, so you dont have to waste a days holiday it's a new age of mortgage appointments!
It's 2017 and mortgage lenders are catching up with technology. It used to be that when you needed a mortgage, you would have a meeting with a bank manager, book the day off work (as they would always be running late) and dress up in your smartest gear. But many mortgage lenders now offer mortgage advice over the phone, and some even use digital face to face technology to have a conversation. Doing it this way means they might not even seen you so you could be there in your pyjamas and they wouldnt even know it. Most can arrange appointments outside of working hours and even on weekends, so you dont have to waste a days holiday it's a new age of mortgage appointments!
Although lenders will look at your credit scores, they'll consider the overall trend rather than just one specific incident. Having a poor credit score doesn't necessarily mean you wont be able to get a mortgage, but it might affect the amount you are offered. Lenders look at other things too, like your incomings, outgoings and general spending habits, which also means you dont have to be coupled up in order to buy a home of your own. Staying aware of your credit history and how it can affect your mortgage application will help you in the long term, but theres no quick fix - so try to keep up good habits as much as you can.
Although lenders will look at your credit scores, they'll consider the overall trend rather than just one specific incident. Having a poor credit score doesn't necessarily mean you wont be able to get a mortgage, but it might affect the amount you are offered. Lenders look at other things too, like your incomings, outgoings and general spending habits, which also means you dont have to be coupled up in order to buy a home of your own. Staying aware of your credit history and how it can affect your mortgage application will help you in the long term, but theres no quick fix - so try to keep up good habits as much as you can.
From LTVs to APRs, there's a lot to learn when it comes to mortgages. But with a bit of research under your belt, you won't be in the dark - and you might be surprised how much you'll pick up on as you go. To get started, check out the Which? Mortgage Jargon buster Opens an overlay [Will show a security message first].
From LTVs to APRs, there's a lot to learn when it comes to mortgages. But with a bit of research under your belt, you won't be in the dark - and you might be surprised how much you'll pick up on as you go. To get started, check out the Which? Mortgage Jargon buster Opens an overlay [Will show a security message first].
A mortgage is a big responsibility, but it's not necessarily the ball and chain you might imagine. For example, if your circumstances change, you could end up paying your mortgage off earlier than you think. If you're on a fixed rate and you need to move sooner than planned, you might be able to take your mortgage rate with you. Having said that, some mortgages and rates carry early repayment charges during fixed or discounted periods, so it's important to find the right mortgage to suit your needs.
A mortgage is a big responsibility, but it's not necessarily the ball and chain you might imagine. For example, if your circumstances change, you could end up paying your mortgage off earlier than you think. If you're on a fixed rate and you need to move sooner than planned, you might be able to take your mortgage rate with you. Having said that, some mortgages and rates carry early repayment charges during fixed or discounted periods, so it's important to find the right mortgage to suit your needs.
Well we know that's just 5, but we hope you're feeling more confident in these areas and feeling a bit more optimistic about mortgages.
We've also put together a few tools and guides that could help you further.
Find out much you could borrow with our mortgage calculator check out our different rates explore our detailed mortgage guides to make your move as simple as possible.
Your home may be repossessed if you do not keep up repayments on your mortgage.