In partnership with the Financial Services National College (FSNC).
Research by the Online Mortgage Advisor suggested 41% of Brits said that being declined a mortgage is an embarrassing secret and worse than missing out on a promotion or a relationship ending.
Not only this, 35% automatically assume they’re not eligible (especially if they’re self-employed) or don’t earn enough for a lender to approve their application.
It’s hard to ignore these findings as those who presume they wouldn’t qualify, or are too scared to try due to fear of rejection, could actually be ticking all the right boxes.
Can I get a mortgage?
You need a lender who is willing to put in the extra elbow grease to ensure those needing something a little bit special are catered for by taking the time to find the right option for each customer.
That’s where we come in.
Below, we’ve busted four common mortgage eligibility myths to help reassure you that your new home dream can be a reality:
Affordable housing schemes are just for first-time buyers
Incorrect. Affordable housing schemes such as the government’s part-rent-part-buy Shared Ownership initiative is not just for first-time buyers. The great news is that there are a variety of different ways in which house-hunters of all ages and stages in life are able to obtain a mortgage in an affordable way. Many of our customers will go through a change in personal circumstance. Whether that is in the shape of a divorce, change in employment or relocation, affordable mortgages schemes are open to everyone. You just need to read the small print as some might be area restricted.
I’m self-employed so it’s almost impossible to get a mortgage
Incorrect. There are over four million self-employed people in the UK, 15% of the workforce, as the desire to be your own boss continues to boom. If you have a varied income or lack three years’ worth of accounts this does not mean that you don’t meet the requirements for a mortgage. Some lenders will still review your application, especially if you can prove a track record of regular work as well as any work lined up for the future. Don’t assume it’s impossible to get a mortgage – it’s not. You just need a lender who understands the world of the self-employed.
Read our article ‘Being your own boss needn’t make it harder to get a mortgage’ for further information.
I had a small discrepancy on my credit score so I can’t borrow funds
Incorrect. Something as small as a defected mobile phone payment or an innocently forgotten credit card shouldn’t be detrimental to your mortgage application. We understand sometimes things fall through the cracks, that’s why we underwrite each mortgage case individually and take into account personal circumstances before approving or declining an application. We don’t even credit score so you shouldn’t discount yourself before you’ve even tried.
I’m too old for a mortgage
Incorrect. It is true some lenders may be reluctant to lend to older borrowers, however, this shouldn’t put you off applying. The key is to be able to prove that you have adequate income to support the mortgage after retirement. You might also need to provide proof of regular income in the shape of pensions, investments and buy-to-lets if you have any. If you can do this then you have just as much of a chance to have a mortgage approved as anyone else.
With so many options available, lenders need to bust inaccurate myths about what it takes to obtain a mortgage. Already we’ve helped parents boost their loved ones borrowing power, divorcees starting afresh, those whose employment situation has changed or those who are relocating to an area with much higher housing prices. We’ve helped permanently employed, contractors, freelancers and the self-employed get the keys to their new home. We’ve helped the young and the old. These customers all had the same goal – to obtain a mortgage.
It’s all about making what might seem impossible, possible.
Visit our mortgage page for a full listing of our mortgage products.
*all figures and data correct as of May 2018
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.