In February 2026, the HomeOwners Alliance surveyed 2,000 UK adults about what they believe about mortgages. The research didn’t find that the mortgage market is broken. It found that most aspiring buyers are walking away from it because of things they believe are true, but aren’t - and that gap is costing families years of rent, equity growth and settled-home stability.
Here are the six biggest myths - and the reality in 2026.
Myth 1: “My credit isn’t good enough”
65% of aspiring buyers believe bad credit means no mortgage.
It’s the most damaging assumption in the survey - because people rarely check whether it’s true before giving up.
A credit score is one input among many. Lenders also assess affordability, income stability, deposit, employment history and existing commitments. A missed mobile payment, a defaulted store card, or a late payment during the pandemic are not automatic mortgage killers - in many cases, they aren’t even visible to the majority of lenders. A thin credit file (never having borrowed) is often a bigger problem than a patchy one and is usually fixable within six months.
Where credit history is a genuine obstacle - a recent CCJ, bankruptcy, active IVA - a specialist lending market exists for exactly that situation. The rates are higher, but the product exists.
What to do instead: Get your free statutory credit report from one of the many credit reference agencies such as Experian, Equifax or TransUnion. We recommend CheckMyFile because they collate information from all three agencies in one place, which means that you can see what lenders can see, and because they offer access to your credit file for 7 days for free*. In 20 minutes, you’ll know whether credit is actually the problem - or whether it never was.
Myth 2: “I need a 10% deposit”
62% of aspiring buyers think they need at least a 10% deposit.
This is the myth costing people the most time.
At the start of 2026, Moneyfacts counted 489 mortgage products at 95% LTV (5% deposit) and 927 at 90% LTV - the highest level of low-deposit choice in nearly two decades. Every major high-street lender offers 5% deposit products. Some lenders offer routes to a mortgage with less than 5% down. One will lend 100% LTV to qualifying renters with 12 months of clean rent history.
In real numbers: on a £250,000 home, the gap between a “10% deposit” belief and the 5% reality is £12,500 - roughly three years of saving for a typical household. That’s three years of rent, lost equity growth and waiting, on an assumption that may never have been true. A bigger deposit does usually unlock better rates – but the difference is often less than you might think.
What to do instead: Before you commit to another year of saving, run the numbers on what you could buy today with 5%. The “stretch” you thought was two years away may be available now.
Myth 3: “I can only borrow 4 to 5 times my income”
49% of aspiring buyers believe the maximum they can borrow is 4 or 5 times their income.
This is out of date rather than wrong - which makes it dangerous, because it used to be right.
In July 2025, the Financial Policy Committee relaxed the cap on high loan-to-income lending. Several major high-street lenders responded by offering 5.5 to 6 times income for qualifying applicants. A first-time buyer couple earning £70,000 combined might have looked at £315,000 of borrowing under the old assumption - and £385,000 to £420,000 under the new one. That’s not marginal. That’s a different postcode.
Higher multiples aren’t automatic. They’re reserved for stronger applications - stable employment, good credit, manageable debt - and lenders still stress-test against a higher notional rate. But if you were told two years ago what you could borrow, that number is probably wrong today.
What to do instead: Get a current affordability assessment, not one based on the rules from when you last looked. The difference is often tens of thousands of pounds.
Myth 4: “The lowest rate is always the cheapest mortgage”
47% focus primarily on the headline interest rate.
This is the only myth where the solution is doing more maths, not less.
A mortgage has at least five costs that matter: the interest rate, the arrangement fee, the valuation fee, the early repayment charge structure and the standard variable rate it reverts to. Focusing only on the headline rate is like choosing a car by MPG alone.
Two 5-year fixes on a £200,000 loan: Product A at 4.50% with a £1,999 fee, Product B at 4.75% with no fee. Over five years, A comes in around £1,700 cheaper. Reverse the loan to £100,000 and the fee becomes a bigger proportion of the cost - Product B now wins. The “best” product genuinely depends on your loan size.
Other factors regularly change the winner: cashback offers, free valuations and legals on remortgages, gentler early repayment charges if you might move and overpayment allowances for anyone with spare income.
What to do instead: This is one of the many ways that a broker can help you. They have the technology to be able to calculate what mortgage is the most cost effective over a defined period of time – taking into account all of the variables described above. They will also take into account all of your other circumstances, preferences and plans to be able to establish which mortgage will be the most suitable and cost effective for you.
