You know that saying “Do not believe everything you read on the internet”? Last week I found out how true that was!
After reading a post on the internet I could not believe how much rubbish I was reading. These were things that I read as being fact which could put people off even attempting to buy a home. This type of think really annoys me as we love helping people get on to the housing ladder and to see people put off by complete rubbish or half truths at best is very frustrating. With it being twitter, I have to be diplomatic and find a polite way to say it is rubbish but as this is our site I can be a little more direct.
So without further ado lets look at some of the myths:
Myth 1 – You can only get a mortgage where the repayments do not exceed 30% of your wage. RUBBISH!
There could well be lenders out there who have that requirement, but in a world of over 80 mortgage lenders, they all have different rules. Lets put some meat on the bones. Find a lender, any lender – they typically have 2 products at every LTV and on 2 year and 5 year fixed rates. One is usually a lower rate with a fee and the other is a higher rate without the fee. They both usually offer the same amount, how could that happen if the repayments differ and there is a cap of 30%?
Myth 2 – You can not lend more than 4.5x income. RUBBISH!
It does indeed get harder if you want to go above 4.5x income, but it can be done. Some lenders will charge more (I understand the irony in that one). The most common is where lenders will only offer it to people on high incomes. We also see it a lot where 5.5x income for example is limited to certain occupations. However the major take home is that it is possible to get beyond 4.5x income but maybe not everyone.
Myth 3 – You need a 15% deposit. RUBBISH!
Quite simply you do not need a 15% deposit.
If we are being polite to the person who said this, some people may for various reasons need a 15% deposit. However, there are 90%, 95% and even some quite quirky 100% products available (but with these you usually need a relative to be involved).
Summary
Please please please do not believe everything you read on the internet. Give us a call. If we can help we will try and help. If we cant, we will tell you why we cant. Even if you do not call us, just call a mortgage broker and get an opinion from someone who does this on a daily basis.
Brokers are used to trying to find solutions to complex circumstances – whether it be bad credit, income stretches or something else. I can assure you we have seen all sorts of weird and wonderful scenarios over the years. We can not help everyone, but we might be able to find a way to make some slight changes to get you on the ladder.
The answer may still be a no, but with so much terrible information on the internet you can not rely on it. There are over 80 mortgage lenders. That means there are potentially 80 different ways to look at things. Not everyone can have the cheapest deal, but that does not mean you can not get a mortgage, nor does it mean it will cost an arm and a leg.
Just dont give up until you speak to a broker if you are struggling.