Mortgage Myths Kylie's Mortgage Podcast

Misunderstandings will always happen. They can happen in all facets of life.  often misunderstandings can mean that you damage or lose relationships. They can mean you have to try and understand something which you thought you already had a grasp of.  Misunderstanding something can also mean you end up missing out on something and this can, unfortunately, apply to mortgages and your options when it comes to mortgages.

I have collected some examples of the more common mortgage myths and then attempted to dispel them so that more people can take advantage of the opportunities which are available to them should they want them.

This is not going to be a full list as unfortunately, I hear new Myths all the time and I will, I am sure be able to do another episode just like this one very soon.

Myth one. You will be able to get a mortgage if your rent would be more than your mortgage

People who rent can get rather frustrated/

I did read that this was up for a  review but at the moment rental payments and the fact that you have kept up a rental agreement is not a factor that lenders can use to determine the amount of mortgage they are willing to lend you. I know a lot of renters find it hard to understand how paying £1200 in rental doesn't mean that your mortgage payments will be able to be as high as £1200 per month but no renting is not a ticket into getting a mortgage.

Myth two

Aren't all lenders the same?

Each Mortgage lender has their own set of criteria and while many of the criteria will be similar from lender to lender there will be differences whether that be subtle or vast and understanding lenders criteria is where a mortgage broker comes into their own.

As a consumer, it would be impractical and difficult for you to learn all the criteria from all the lenders and if you are in a position where you would like to obtain a mortgage I would suggest you seek out the advice and services of an intermediary otherwise known as a mortgage adviser.

Mortgage advisers gather your information and understand your uniqueness and place you with the lender that is best suited to you and your needs and get you the outcome that you would like.

Applying to a lender who ultimately will not lend to you is not the best use of your time and resources so if you are going to apply to a mortgage lender directly then do some due diligence beforehand to make sure they would like your application.

My credit score is very low…. I can’t get a mortgage

At the very moment that you decide that you want to get a mortgage, it's a really good idea to get a copy of your credit report. You can take this credit report with you when you go to a mortgage adviser and if you're unsure about anything and get their advice on the report itself this is a step that you really should not forget and you shouldn't skip some cases we've seen clients with surprise says on that report which they could have rectified before applying for the mortgage. Check this out because in timer lend-able do so and it's a good idea to know what you're going you're heading into before they do.

The right to vote

Being registered to vote will put a positive element on your credit report. This is something that can be done again the moment you decide that you want to apply for a mortgage along with these make sure that your bank statements and driving licences also have your current name and address on them as any discrepancies with these may just put a delay on your application.