Mortgage Myths That Cost You Money and How to Avoid Them

When it comes to mortgages, misinformation can be expensive. Many UK homeowners and buyers make decisions based on assumptions that sound sensible but can quietly cost them thousands over time.

Some of these mortgage myths are passed on by friends and family. Others come from headlines or outdated advice. The mortgage market changes constantly, and relying on general assumptions can leave you paying more than you need to.

Below are some of the most common mortgage myths that cost people money – and what to keep in mind instead.

Myth 1 - There Is a “Perfect Time” to Get a Mortgage

Many borrowers believe there is a perfect moment to take out or change a mortgage, and that waiting for clearer signals will always lead to a better outcome.

Mortgage decisions are highly personal. What works well for one borrower may not suit another, even on the same day. Rates, fees, flexibility, and future plans all play a role.

Focusing too heavily on timing can delay progress, rather than improving the overall result.

Myth 2 - Your Bank Will Automatically Offer You the Best Deal

It is common to assume that your existing bank will offer competitive terms when it is time to remortgage. In practice, lenders rarely reserve their most attractive deals for existing customers.

Many competitive products are available elsewhere in the market. Without taking the time to explore alternatives, it is easy to accept an offer that feels convenient but may not be particularly cost-effective.

Myth 3 - A Longer Fixed Rate Is Always the Safest Option

Longer fixed-rate mortgages can offer certainty, but they are not always the best fit for every situation.

Extended fixes often come with higher rates, larger early repayment charges, and less flexibility if circumstances change. What feels reassuring at the outset may become restrictive later on.

The right balance depends on how long you plan to stay put and how much flexibility you may need.

Myth 4 - You Only Need to Review Your Mortgage When the Deal Ends

Many borrowers only think about their mortgage when a deal is about to expire. By that point, options can feel limited and decisions rushed.

Reviewing your position earlier allows more time to consider what is available and avoid drifting onto a higher standard variable rate.

Myth 5 - If Rates Improve Later, You’ll Automatically Benefit

Some borrowers assume that improvements in the wider market will automatically be reflected in their mortgage.

Changes in pricing are not applied retrospectively, and opportunities can be missed without regular reviews. Staying aware of how your mortgage compares over time is often just as important as the initial decision.

Why These Myths Persist

Mortgage decisions are often made infrequently, and the market can feel complex. Without clear context, outdated ideas or well-meaning advice can easily fill the gap.

Taking time to step back and review your position can help ensure decisions are based on how the market works today, rather than how it worked in the past.

Mortgage myths tend to oversimplify decisions that are anything but simple. Over time, even small differences in rates, fees, or flexibility can add up to meaningful costs.

One of the biggest risks is allowing assumptions to go unchallenged, rather than taking the time to understand your options more clearly.

Get Clear on Your Mortgage Options

If you are buying, remortgaging, or simply want to sense-check whether your mortgage still works for you, a conversation can often bring you clarity.

Book an appointment with the Embrace team to discuss your current options and get clear, practical mortgage guidance tailored to your unique circumstances.

The information contained within was correct at the time of publication but is subject to change.Your home may be repossessed if you do not keep up repayments on your mortgage.