5 Common Mortgage Misconceptions Debunked

Navigating the world of mortgages can be a daunting task, especially with the plethora of information out there. Unfortunately, some of this information can be misleading and lead to misconceptions about the mortgage process. 

It’s not uncommon for people to fall prey to these misconceptions, which can result in them making the wrong decisions. 

However, fear not! In this blog, we’ll take a closer look at some of the most common mortgage myths and debunk them once and for all. So if you’re currently on the hunt for a mortgage, or just interested in learning more about the process, keep reading!

1. You need a 10 or 20% deposit

One of the top mortgage myths that many people believe is that a hefty 10 or 20 percent deposit is necessary to secure a mortgage and purchase a home. However, this is a common misconception that could potentially prevent aspiring homeowners from taking the leap towards their dream property. 

The truth is, there are numerous options available in the market, and a deposit as low as five percent could be enough to secure your mortgage. It’s worth noting that lower deposit amounts come with their own set of benefits and challenges, such as higher monthly mortgage payments and varying interest rates. 

With so many variables to consider, it’s crucial to choose the right deposit amount for your unique circumstances. At Sett Mortgages, we understand the importance of finding the perfect fit for you, and we’re here to provide you with a comprehensive breakdown of all your options. So, if you’re considering purchasing a home, don’t let the fear of a large deposit hold you back!

2. You can’t get a mortgage with bad credit

It’s not uncommon for individuals to believe that having bad credit automatically disqualifies them from obtaining a mortgage. This is a common misconception that can cause confusion and uncertainty for those looking to purchase a home. Many questions arise such as, “Do I need a credit card to qualify for a mortgage?” or “What if I don’t know my credit score? Can I still get a mortgage?” 

While it’s true that your credit score can impact the mortgage approval process, having a less-than-perfect score doesn’t necessarily mean you’re out of the running. At Sett Mortgages, we work with hundreds of lenders, giving us access to a wide range of options that suit your individual needs. 

It’s important to keep in mind that lenders will take several factors into account when determining your eligibility for a mortgage, such as your income, employment history, and debt-to-income ratio. So, while having a strong credit score is certainly a plus, it’s not necessarily the only factor that lenders consider. Our team is dedicated to helping you explore all your options and find the best deal possible, regardless of your credit score. So, if you’re ready to take the leap towards homeownership, don’t let a misconception about credit scores hold you back.

3. Fixed-rate mortgages are always the best option

If you’re just starting your search for a mortgage, you might not be familiar with all the different types that are available. One of the most common comparisons is between fixed-rate and variable mortgages. However, a common misconception we hear is that fixed-rate mortgages are always the best option. While fixed-rate mortgages can offer stability and security for a period of time, it’s important to note that the best type of mortgage is dependent on personal circumstances and the financial situation of the country at the time of applying.

One of the benefits of a fixed-rate mortgage is that it provides protection against interest rate changes for a set period. This can be an attractive feature for those who want the peace of mind of knowing exactly how much their monthly mortgage payments will be. However, in some cases, a variable rate mortgage may be a better fit for someone’s individual situation. For example, if interest rates are expected to decrease in the near future, a variable rate mortgage could offer more savings in the long run.

It’s important to carefully consider your individual circumstances and consult with a mortgage professional before deciding on a mortgage type. At Sett Mortgages, we understand that every individual’s financial situation is unique. That’s why we work closely with our clients to explore all their available options and find the best fit for their specific needs. So, don’t fall for the misconception that fixed-rate mortgages are always the best option. Instead, let us help you find the perfect mortgage for your unique situation.

4. You should always choose a 30-year mortgage

When it comes to mortgages, the term of the loan is a crucial factor to consider. Some people opt for longer terms, such as 40 years, in order to have lower monthly payments, while others prefer shorter terms, like 20 years, in order to become mortgage-free faster. However, it’s important to note that the best mortgage term for you is dependent on a variety of factors.

Firstly, your financial situation will play a significant role in determining the most suitable mortgage term. If you have a higher income and are able to comfortably make larger monthly payments, then a shorter mortgage term may be a good option for you. On the other hand, if you have a lower income or are anticipating future expenses, then a longer mortgage term with lower monthly payments may be a better fit.

Another factor to consider is the interest rate of the mortgage. Longer mortgage terms often come with higher interest rates, which can lead to more interest paid over the life of the loan. It’s important to weigh the benefits of lower monthly payments against the overall cost of the mortgage.

At Sett Mortgages, we understand that choosing the right mortgage term can be overwhelming. That’s why we work closely with our clients to explore all their available options and find the best fit for their individual needs. Whether you’re looking for a shorter mortgage term to become mortgage-free faster or a longer mortgage term with lower monthly payments, we can help you find the right solution for your unique situation.

Don’t fall for the misconception that longer mortgage terms always equate to lower monthly payments. Let us help you navigate the world of mortgage terms and find the perfect fit for your financial situation.

5. You can’t get a mortgage if you’re self-employed or have irregular income

For those who are self-employed or have irregular income, getting a mortgage can be a daunting task. Many people believe that they will be turned down for a mortgage, or that their options will be severely limited due to their employment status. However, this is not the case. In fact, there are many mortgage options available for those who are self-employed or have irregular income. These options take into account the unique financial situations of these individuals and provide them with the flexibility they need to purchase a home. 

We understand the challenges that these individuals face when trying to obtain a mortgage, and we are here to help. Our team can work with you to find the best mortgage options for your unique financial situation, so you can achieve your dream of homeownership.

Final thoughts

The mortgage market can be daunting and even lead to misconceptions about the mortgage process. This article has debunked some of the most common home buying myths and hopefully puts your mind at ease.

At Sett Mortgages, we understand that everyone’s financial situation is unique, which is why we work closely with our clients to find the best fit for their individual needs. If you’re considering purchasing a home or need mortgage advice, please don’t hesitate to contact us today.


  • Elliott Benson

    Meet Elliott, a seasoned mortgage broker with over nine years of experience in property, and the founder of Sett Mortgages. With a background as a sales negotiator and mortgage services manager, he is a trusted professional with extensive knowledge in all things mortgages. Elliott's empathetic approach and clear communication style make him an approachable expert, decoding the complexities of mortgages for clients from diverse backgrounds. He stays up-to-date with the latest trends and regulations, offering cutting-edge solutions tailored to clients' needs. Committed to their financial well-being, he guides them through the mortgage process, ensuring countless successful and satisfied clients. Elliott's passion extends beyond his practice; he's a prolific writer, sharing his knowledge and insights in industry publications and blogs. His mission is to empower others with the information they need to make sound financial decisions.

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