Common Property Buying Myths in the UK — Debunked (2025 Guide)

Introduction: Don’t Let Property Myths Delay Your First Home

Buying your first home is exciting—but the UK housing market is full of outdated advice and persistent misconceptions. From “you need a 20% deposit” to “renting is always cheaper ” these myths often stop people from even starting the process.

Let’s clear things up.

This guide exposes the most common property buying myths in the UK with expert facts 2025 data and tips for confident homebuying especially if you're a first-time buyer .

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Myth 1: You Need a 20% Deposit to Buy a House

Reality: In 2025 most first-time buyers can purchase a home with just 5%–10% deposit thanks to:

• 95% LTV mortgages

• Government-backed schemes like the Mortgage Guarantee Scheme

• Lifetime ISAs boosting savings by 25%

A 10% deposit can still unlock better mortgage rates but 20% isn’t essential to get started.

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Myth 2: Renting Is Cheaper Than Buying

Reality: It depends. While renting may be cheaper month-to-month it doesn’t build equity.

• In 2025 average rent outside London is ~£1 100/month

• Typical first-time buyer mortgage : ~£1 200/month (with a deposit)

But with mortgage payments you’re gradually paying off an asset while rent is gone for good.

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Myth 3: You Can’t Get a Mortgage Without a Perfect Credit Score

Reality: You can get a mortgage with imperfect credit . Many lenders accept:

• Missed payments (especially if old)

• Low credit scores

• Thin credit files

Specialist lenders like Aldermore Kensington or Pepper Money offer flexible products—sometimes with just 10–15% deposit .

A strong income and clean recent history often matter more than your score alone.

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Myth 4: You Should Always Use Your Bank for a Mortgage

Reality: Your bank might not offer the best rate. Whole-of-market mortgage brokers can access:

• Exclusive deals not available to the public

• Specialist lenders not on the high street

• Faster approval for complex cases (like self-employed or joint applicants)

Comparing across lenders could save you £1 000s over your mortgage term .

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Myth 5: An Agreement in Principle Guarantees a Mortgage

Reality: A Mortgage in Principle (AIP) is not a guarantee. It simply shows how much a lender might lend based on initial information.

Final approval depends on:

• Full application and credit check

• Property valuation

• Supporting documents (payslips accounts ID)

Think of an AIP as a green light to view homes not a binding offer.

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Myth 6: You Can’t Use a Gifted Deposit

Reality: You can . In 2025 many first-time buyers get help from parents or relatives. Most lenders accept gifted deposits with a signed letter confirming:

• It’s not a loan

• The giver has no stake in the property

• Funds are from a legitimate source

Use WiseNest to upload and track solicitor and lender requirements for gifted funds.

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Myth 7: Surveys Are a Waste of Money

Reality: Skipping a survey to save money is a false economy .

Basic mortgage valuations don’t assess property condition. A proper RICS Level 2 or 3 survey can uncover:

• Structural issues

• Damp or subsidence

• Roof defects

• Risky electrics or plumbing

Many buyers negotiate price reductions after survey findings —sometimes saving thousands.

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Myth 8: Leasehold Means You Don’t Really Own the Property

Reality: Leasehold means you own the property but not the land it’s built on—for a fixed term (e.g. 99 or 125 years).

You can sell live in rent out or renovate (with permission). However:

• Check ground rent and service charges

• Avoid leases under 80 years (can reduce value)

Your solicitor will flag lease terms and advise before exchange.

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Myth 9: You Need to Be Employed Full-Time to Get a Mortgage

Reality: Self-employed freelancers and contractors can absolutely get mortgages in 2025.

What lenders want is:

• Consistent income

• 1–2 years of tax returns (SA302s)

• Good affordability

Specialist lenders and brokers can help if your income is irregular.

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Myth 10: You Can’t Renegotiate After an Offer Is Accepted

Reality: You can especially if:

• The survey reveals defects

• The property is down-valued

• The seller’s circumstances change

Price renegotiation is perfectly legal until exchange of contracts in England Wales and NI.

Be respectful show evidence and let your solicitor handle communication.

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Summary: First-Time Buyer Myths—Busted

Final Thoughts: Start Your Journey with the Facts—Not the Fear

There’s a lot of misinformation around buying your first home in the UK. But when you cut through the myths and understand the process it’s completely achievable —even on a modest income or without perfect circumstances.

Create your free WiseNest account to get AI-powered support budget tools document checklists and expert-first tips for your homebuying journey.