Another common mortgage myth in England is that you need perfect credit to get a mortgage. While having good credit can help you qualify for better mortgage rates, it is not always necessary to have perfect credit.
There are many programs available for those with less-than-perfect credit, such as government-backed loans such as the Help to Buy scheme, which allows buyers to purchase a new-build property with just a 5% deposit. Additionally, the Shared Ownership scheme allows first-time buyers to purchase a share of a property and pay rent on the remaining share.
It’s worth noting that even if you don’t have perfect credit, you may still be able to qualify for a mortgage. Lenders take a variety of factors into account when determining your eligibility, including your income, employment history, and debt-to-income ratio.
Additionally, if you have a less than perfect credit score, it’s a good idea to work on improving it before applying for a mortgage. This can include paying off any outstanding debts, making all your payments on time, and limiting your credit applications.
In conclusion, having good credit can help you qualify for better mortgage rates, but it is not always necessary to have perfect credit. With various government-backed programs and other options available, it is possible to get a mortgage even if you have less-than-perfect credit. It’s always advisable to consult with a mortgage advisor, who can help you understand the different options available to you.