A new survey has revealed some of the common misconceptions about mortgages, with many Brits believing that when you die your outstanding mortgage gets wiped and that stamp duty is the cost of posting the necessary paperwork.
According to Online Mortgage Advisor, four out of 10 people believe you have got to be in a job for at least six months to get a mortgage, while two in 10 people think stamp duty is related to postage.
The survey, which questioned over 2,000 people, found that 65% of people seeking a mortgage were fairly confident about their understanding of mortgage matters.
A further 19% said that they felt very confident, while the remaining 16% indicated that they were not confident at all.
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 are:
- You must have been in a job for at least 6 months to be eligible for a mortgage – (39%)
- Your credit score is the primary thing lenders care about when it comes to mortgages” (36%)
- When you die your outstanding mortgage gets wiped – (21%)
- Stamp duty refers to the cost of posting necessary paperwork (19%)
- The interest rate on a mortgage will last for the duration of the term – (13%)
- Deposits are the monthly repayments (13%)
- If you miss one single repayment your house could be repossessed – (12%)
- The primary carer of any children is always entitled to remain in the house in the event of divorce/break-up – (11%)
- When you die, your house is automatically auctioned off – (9%)
- The longest mortgage term available will take you to 85 years old – (7%)
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