It can feel confusing if you’re trying to get a mortgage for the first time, especially with all the advice floating around. Some people hear tips from friends, social media, or even old-school thinking, and take them as fact. But not everything you hear is true.

In this article, we’ll bust 10 common mortgage myths that could be holding you back from buying your home. Whether you’re self-employed or have bad credit, the truth might surprise you.

Let’s clear up the confusion and help you make better decisions about your mortgage.

1. You need a big deposit to get a mortgage

Many people believe you must save for years and have a huge deposit before you can buy a home. That’s not always true.

  • Some lenders accept as little as a 5% deposit.
  • There are mortgage options like Help to Buy or Shared Ownership that can make it easier for first-time buyers.
  • A bigger deposit might help get better rates, but it’s not the only way to get on the property ladder.

If saving a large deposit feels out of reach, speak to a mortgage broker. They can show you what’s possible based on what you already have.

2. You can’t get a mortgage if you’re self-employed

Being self-employed doesn’t stop you from getting a mortgage, but you may need to show more paperwork.

  • Lenders will want to see proof of income, usually from the last 1 to 2 years.
  • Having a good record of your earnings (like tax returns or bank statements) helps.
  • Some lenders specialise in self-employed mortgages.

A broker can help match you with a lender who understands self-employment and won’t automatically say no.

3. Bad credit means you will struggle for mortgage approval

This is one of the most common mortgage myths. While a low credit score can make things harder, it doesn’t always mean you’ll be turned down.

  • Some lenders are open to working with people with a poor credit history.
  • You may need to pay a slightly higher interest rate or provide a larger deposit.
  • Your credit score isn’t the only thing that matters—your income, job, and debt also count.

A broker can help you find the right lender and avoid wasting time on applications that are likely to be rejected.

4. You should take out a mortgage with your bank

Many people think they should stick with their current bank when getting a mortgage. But that’s not always the best choice.

  • Your bank might not offer the best rates.
  • They may only have a limited number of mortgage products.
  • Other lenders could have deals that better suit your situation.

It’s a good idea to compare your options. A mortgage broker can search the whole market and help you find the most suitable deal.

5. Mortgage brokers are very expensive

Some believe that using a mortgage broker will cost too much. That’s not always true.

  • Many brokers don’t charge upfront fees. They get paid by the lender.
  • Others may charge a small fee, but they often save you more in the long run by finding better deals.
  • You’re also paying for expert advice that can prevent costly mistakes.

So, before assuming it’s too expensive, ask a broker what they charge. You might be surprised!

6. It’s much cheaper to rent a house than buy one

Renting can seem cheaper in the short term, but buying often makes more sense in the long run.

  • Monthly mortgage payments can be similar to—or even lower than—rent.
  • When you buy, you’re building equity in a property. With rent, that money is gone each month.
  • Owning gives you stability and a chance to benefit if property values go up.

Use a mortgage calculator or speak to a broker to see what buying would cost compared to renting in your area.

7. Fixed-rate mortgages are always the best

Fixed-rate mortgages can be a great choice, but they’re not always the best for everyone.

  • Fixed rates mean your payments stay the same for a set period, which gives stability.
  • But variable or tracker mortgages can sometimes offer lower rates at the start.
  • If you plan to move soon, a shorter-term or flexible deal might save you money.

The right choice depends on your goals. A broker can help you pick a mortgage that fits your life, not just the one that sounds safest.

8. The lower the mortgage rate, the cheaper the mortgage

It seems obvious, but this isn’t always true. A lower rate doesn’t always mean a cheaper deal.

  • Some low-rate mortgages come with high fees.
  • Others may have conditions, like big early repayment charges.
  • A slightly higher rate with no fees could save you more overall.

Always look at the full cost, not just the rate. A broker can help compare deals fairly.

9. You can’t get on the property ladder under the age of 30

Many young people think buying a home is out of reach—but that’s not always the case.

  • Schemes like Shared Ownership and Right to Buy can help.
  • Lenders often accept gifted deposits from family.
  • Some offer low-deposit or 95% mortgages.

If you’ve got steady income and a plan, buying before 30 is possible. Speak to a mortgage broker to explore your options.

10. You can’t get a mortgage if you have student debt

Student loans are common, and they don’t stop most people from getting a mortgage.

  • Lenders care more about your income and regular monthly outgoings.
  • Student loan payments are usually taken automatically from your wages.
  • As long as you can afford the mortgage, student debt isn’t a deal-breaker.

So don’t let student loans hold you back. Lenders expect to see them, and they’re not a red flag on their own.

Why do these mortgage myths still exist?

Many of these myths stick around because of:

  • Outdated advice passed down from parents or friends
  • Confusing financial jargon used by banks and lenders
  • Social media “influencers” who give advice without qualifications

That’s why it helps to speak to a trusted mortgage broker. They can cut through the noise, give you facts, not opinions, and help you find a deal that works for you.