4 biggest first-time buyer misconceptions 

1 Thinking you need a much bigger deposit than you do 

Many first-time buyers delay their decision to buy because they believe they need to save for a far bigger mortgage deposit than they really need.  

The reality is there are lots of mortgage products on the market that could enable you to secure a mortgage at a competitive rate with a low deposit.  

“There are so many lender options and solutions in the marketplace that allow as little as 5% deposit,” Mark explains.  

Dependent on your circumstances, some lenders are now offering 100% mortgages.  

2 Relying on online affordability and repayment calculators to tell you how much you could borrow

“Whilst these tools can give a guide on affordability and costs, they aren’t 100% accurate as every client’s circumstances are unique,” Mark explains.  

Most repayment calculators default to 25 year mortgage terms which increases the monthly mortgage repayments and isn’t always the best option.  

“25 years was the norm term for mortgages linked to endowments many years ago whereas most lenders now offer up to 35 and even 40 years depending on the client’s age. 

“There are so many lending options available in the market for buyers.  

“The Deposit Unlock scheme can offer a fantastic lifeline to First Time Buyers and Home movers alike, enabling them to buy a new build home with just a 5% deposit.” 

Deposit Unlock is available exclusively on new build homes built by developers signed up to the scheme.  

3 Assuming a ‘blip’ on your credit file will stop you from securing a mortgage entirely

“The reality of the lending space just now means many high street lenders are willing to consider many circumstances,” Mark explains. “We have often found solutions for clients that have been a pleasant surprise for them.” 

“There are also so many other non-high street lender choices and often require less deposit than clients think.  

“Many of these lenders offer a sliding scale interest rate to align with a client’s situation rather than a one-size-fits-all approach.”   

4 Believing you have to be in a job for at least 6 months to secure a mortgage

“This is a huge misconception,”” Mark explains.  

“Many lenders will accept applications from people who have been in their job for 3 months, and there are lenders that will work from a copy of a contract 3 months in advance, so buyers don’t need to delay and miss out on that perfect home at all.”