Mortgage myths busted: what renters need to know this summer

With rising rents, fluctuating interest rates, and an unpredictable housing market, many renters in the UK find themselves wondering whether buying a home is a realistic goal. The good news? A lot of the barriers people believe are in place simply aren’t there, or at least, not entirely.

As a mortgage and protection adviser, I often hear the same worries from renters who are keen to take the next step but feel unsure where to start. So, let’s clear the air and bust some of the biggest mortgage myths holding renters back this summer.

Myth 1: you need a 20 percent deposit to get on the ladder

Reality: While a 20 percent deposit may offer access to better rates, it is not a requirement. Many lenders accept deposits as low as five percent, particularly through schemes like first homes, and shared ownership. If you are a first-time buyer, you may also be eligible for the lifetime individual savings account, which boosts your savings with a 25 percent government bonus.

Myth 2: you need a perfect credit score

Reality: A less-than-perfect credit score does not automatically disqualify you from getting a mortgage. Lenders assess affordability using a range of criteria, not just your credit history. If you have had missed payments in the past, all is not lost. With the right guidance, specialist lenders may still offer competitive solutions.

Myth 3: renting is cheaper than buying

Reality: Depending on your location and circumstances, monthly mortgage repayments can be lower than rent. Plus, with a mortgage, you are investing in an asset, your own home. While owning comes with maintenance costs, renters are often surprised to learn how much they could be saving or building in equity by switching to ownership.

Myth 4: self-employed people are unable to get a mortgage

Reality: Being self-employed does not shut you out of the mortgage market. Lenders simply want to see proof of income, usually in the form of tax returns and business accounts from the last one to two years. With the right paperwork in place and support from an adviser, self-employed applicants can access a wide range of options.

Myth 5: interest rates are too high to buy now

Reality: While rates have risen from their historic lows, many analysts expect them to stabilise or even fall in the coming months. More importantly, timing the market rarely works in anyone’s favour. If you find the right home and the numbers make sense for your budget, buying can still be a smart long-term move—especially if you secure a fixed-rate deal.

So, what should you do this summer?

• Speak to a mortgage adviser. Understanding your options can clarify what is possible based on your current income, savings, and credit.
• Check your credit file. Simple steps like registering to vote and paying down small debts can help improve your standing.
• Start budgeting. Review your spending and begin setting aside money each month, not just for your deposit, but for additional costs like solicitor fees and surveys.
• Explore government schemes. You might be eligible for support you didn’t even know existed.

Final thought

If you are renting and feeling stuck, know this: the biggest obstacle to buying a home is not always money, it is misinformation. By challenging the myths and speaking to a qualified adviser, you can make informed decisions and take control of your financial future.

Let this summer be the season you move from wondering to planning. The keys might be closer than you think.

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you seek mortgage advice from a regulated mortgage adviser before making any mortgage decisions.