Think you can’t afford to buy your first home? Think again.
Thanks to changes in the mortgage market, getting on the property ladder in Thetford might be more achievable than you think.
Recent research from mortgage brokers Alexander Hall found that many aspiring first-time buyers (FTBs) still have outdated views about what it takes to secure a mortgage. As a result, plenty of people assume home ownership is out of reach — when it really isn’t.
Here are some of the biggest mortgage myths still holding people back, and what’s actually true in today’s market.
My deposit isn’t big enough
More than half of aspiring buyers surveyed (53%) thought they needed at least a 10% deposit, while 14% weren’t sure of the rules at all.
In reality, it’s possible to get on the ladder with just a 5% deposit.
With lenders relaxing their criteria, the number of 5% deposit mortgage products is now at a 17-year high, giving more first-time buyers the chance to buy a home in Thetford and across Breckland.
I don’t earn enough
A third of people believed they could only borrow up to three times their income.
However, most lenders now offer loan-to-income ratios of around 4.75 to 5 times income — and some even more, depending on your situation.
Alexander Hall’s data shows the current average for first-time buyers is 4.08 times income, meaning you may be able to borrow more than you think.
I can’t get a mortgage because I’m self-employed
This one’s changing fast.
For years, self-employed workers found it difficult to get a mortgage approved without a long trading history. That’s why a third of people still think you need at least three years of accounts.
But these days, many lenders will consider applicants with just one or two years of certified accounts, as long as the income is consistent and verifiable.
So if you run your own business or freelance, don’t rule yourself out — lenders are far more flexible than they used to be.
Do your homework
For a long time, getting on the property ladder as a first-time buyer really was tough.
But with interest rates now easing and the lending market becoming more accessible, it’s worth re-evaluating your options.
If you checked a few years ago and found you couldn’t quite make the numbers work, things might look very different today.
If you’re thinking about buying your first home in Thetford or the wider Breckland area, our team can connect you with independent mortgage advisers and help you explore your options.
Get in touch for a friendly chat — we’d love to help you take your first step.
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The information in this article does not constitute financial advice.
Article by Andrew Overman | Partner | Location Location East
