Most common mortgage misconceptions revealed
A list of the most common mortgage misconceptions was made when over 2,000 respondents planning to get a mortgage within the next 12 months marked what they believed to be true in a list of true and false mortgage related statements.
Despite 65% of respondents feeling ‘fairly confident’ about their understanding of mortgage matters, 36% believed credit scoring was the most important thing to lenders, according to Online Mortgage Advisor.
One fifth (21%) of people believed outstanding mortgage debt is wiped if you die, while 19% believed Stamp Duty refers to the cost of posting necessary paperwork.
Only 11% got every statement correct. More than a third (36%) expected their partner to take the lead on financial and/or mortgage related matters.
Pete Mugleston, director of Online Mortgage Advisor, said: “Some of the misconceptions are startling and it really illustrates how uneducated people are about mortgages. We don’t expect everyone to be experts within this field, that’s what we’re here for, but it’s important that people are getting the correct information when they seek advice.
“We speak to hundreds of customers every week who’ve had trouble getting mortgages due to credit issues, or failed to even pursue a mortgage because they think they aren’t eligible. The point is that every lender has different criteria so there is someone out that that can provide a mortgage in almost every circumstance.”
The most common mortgage misconceptions were revealed as follows:
1. You must have been in a job for at least 6 months to be eligible for a mortgage – (39%)
2. Your credit score is the primary thing lenders care about when it comes to mortgages” (36%)
3. When you die your outstanding mortgage gets wiped – (21%)
4. Stamp duty refers to the cost of posting necessary paperwork (19%)
5. The interest rate on a mortgage will last for the duration of the term – (13%)
6. Deposits are the monthly repayments (13%)
7. If you miss one single repayment your house could be repossessed – (12%)
8. The primary carer of any children is always entitled to remain in the house in the event of divorce/break-up – (11%)
9. When you die, your house is automatically auctioned off – (9%)
10. The longest mortgage term available will take you to 85 years old – (7%)