Buying your first home comes with enough to think about without half-true rumours getting in the way. Some of the most common mortgage myths stop people from even starting the process, while others lead to decisions that cost real money. Here are five of the biggest, and what’s true in 2026.
Myth 1: You need at least a 10 percent deposit
This is the myth costing buyers the most time. At the start of 2026 there were 489 mortgage products available at 95 percent loan-to-value, meaning a 5 percent deposit, alongside 927 products at 90 percent LTV – the widest choice of low-deposit mortgages in almost two decades. On a £250,000 home, the gap between believing you need 10 percent and the 5 percent reality works out at around £12,500, which for many households means roughly three extra years of saving for no real reason.
Myth 2: Bad credit means you won’t get a mortgage at all
It’s the most damaging assumption out there, largely because people give up before checking whether it’s true. In one survey, 65 percent of aspiring buyers believed poor credit would rule them out completely (JLFS, 2026). A credit score is only one part of what a lender looks at, alongside affordability, income stability, deposit and employment history. A missed phone bill or a defaulted store card years ago rarely stops an application in its tracks, and where credit history genuinely is a barrier, a specialist lending market exists specifically for that situation.
Myth 3: Self-employed buyers need three years of accounts
This one puts off a huge number of freelancers and business owners before they’ve even applied. While some high-street banks still ask for three years of trading history, many lenders will now consider applications with just 12 months of accounts, and the income multiples on offer are broadly the same as for employed buyers – typically four to four and a half times your assessed annual income. The key is understanding how your specific income structure, whether that’s sole trader profit, dividends or day rate, will be viewed by different lenders, which is exactly where an adviser earns their keep.
Myth 4: Going straight to your own bank gets you the best deal
It feels like the simplest option, but your bank can only ever offer you its own products. A whole-of-market broker can compare deals across dozens of lenders, including specialist ones your bank may never mention, and match the deal to your actual circumstances rather than what’s sitting on one bank’s shelf. For most buyers, that difference is measured in real pounds over the life of the mortgage, not just convenience.
Myth 5: A mortgage in principle guarantees you the final mortgage
A mortgage in principle is a useful indication of what you might be able to borrow, and it strengthens your position when making an offer on a property. It isn’t a guarantee. The full application involves a much more detailed look at your income, outgoings and the specific property, and any of these can change the outcome. Treat it as a helpful starting point rather than confirmation and keep your finances steady between the two stages.
Don’t let a myth make the decision for you
Every one of these myths has stopped someone from buying a home they could genuinely have afforded or cost them money they didn’t need to spend. The only way to know what’s true for your situation is to ask.
If you’d like to find out where you stand, our team would be glad to help. Book a free initial consultation with one of our advisers and we’ll talk through your options together, with no obligation.
**Please note: Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured on it.
This blog is for general information only and does not constitute personalised financial advice.
Mortgage rates and lending criteria are subject to change and individual circumstances vary.
The information contained within this article was accurate at the date of publication. Publication date: 14/09/2026.