Buying your first home is a major milestone, and while it can seem overwhelming, it does not have to be. In addition to meeting specific requirements, navigating through common myths and misconceptions can make the process appear more daunting than it really is. At Which Mortgage, we are committed to simplifying the mortgage process. We do this by providing you with the information you need to empower you to confidently step onto the property ladder.

This article aims to debunk common myths surrounding the home-buying process, ensuring that you have a clear understanding of what lies ahead when buying your first home.

Myth: Your rent is not taken into consideration when applying for a mortgage 

This is not the case. You rental payments play a vital role in assessing your repayment ability. Your rent is considered by lenders when they assess what you can afford in mortgage repayments and it is used to demonstrate your capacity to meet your repayments. It is important that you retain evidence of your rental payments and submit it with your application.

Myth: You must find a property before you can apply for a mortgage

The truth is, you can apply for a mortgage approval in principle (AIP) before finding your dream home. To obtain an AIP, we will submit your fully completed mortgage application to your lender of choice. Your AIP will be valid for a period of 6 months, allowing you to house-hunt with confidence. Estate agents recognise your AIP as proof of your likelihood to secure a full loan offer, which enhances your chances of making a successful bid on the home you wish to buy.

Myth: Renting is cheaper than buying

This is a common misconception. In most counties in Ireland, the average rent per year exceeds the annual average paid by mortgage holders. A recent report from Daft.ie shows that renters pay €3,588 more per year than buyers who have taken a 90% loan to value mortgage on the same property. Rent is costly not only in the short term but also in the long term because it lacks the investment aspect of a mortgage, leaving you without ownership of the property and requiring ongoing rent payments even in retirement.

Myth: Lenders are reluctant to lend to single applicants

Single individuals can indeed secure a mortgage. Affordability is the primary consideration, with lenders evaluating financial stabillity, credit history, income, and other factors. If a single applicant meets these criteria and demonstrates the ability to afford repayments, they can successfully secure a mortgage.

Myth: You can only get a mortgage from your current bank

You can secure a mortgage with any lender in the market. At Which Mortgage, we have access to all lenders. We ensure that you have the choice of a wide range of options and the best available rate, regardless of the lender.

The journey to owning your frst home should be exciting and fulfilling, not riddled with confusion and misconceptions. Which Mortgage provides you with a seamless experience, equipping you with the knowledge needed to confidently buy your first home. For personalised advice and more information, contact us today.