Mortgage Myths That Could Cost You Thousands: Myth #1 – “My Own Bank Will Give Me the Best Mortgage”

Mortgage Myths That Could Cost You Thousands: Myth #1 – “My Own Bank Will Give Me the Best Mortgage”

Loyalty Is Valuable, But It Doesn’t Always Mean the Best Mortgage

Many of us have banked with the same provider for years. Our salary goes into the account every month, we know the app inside out, and we trust the brand.

So, when it comes to arranging a mortgage, it’s natural to assume your own bank will offer you the best deal.

But is that always the case?

The simple answer is no.

While your bank may offer a mortgage that’s suitable for your circumstances, it can only offer its own products. It can’t tell you whether another lender has a more suitable mortgage, different lending criteria, or a product that better matches your needs.

Every Lender Has Its Own Rules

One of the biggest misconceptions is that all mortgage lenders assess applications in the same way.

In reality, every lender has its own criteria.

Some lenders may be more flexible when it comes to self-employed applicants, while others take a different approach to overtime, bonuses, commission, or multiple sources of income.

Some are happy to lend on certain property types that others may decline.

Others may offer higher income multiples for applicants who meet specific criteria.

This means that two lenders could look at exactly the same application and reach very different conclusions.

It’s About More Than Just the Interest Rate

It’s easy to focus on whichever lender is advertising the lowest rate.

However, the interest rate is only one part of the overall picture.

The right mortgage for you may also depend on:

• Arrangement fees
• Incentives such as free valuations or cashback
• Early repayment charges
• Flexibility to make overpayments
• Portability if you move home
• The lender’s affordability assessment
• How your income is assessed

Sometimes, a slightly higher interest rate could work out to be the better option overall once all these factors are taken into account.

Your Circumstances Are Unique

No two borrowers are the same.

Perhaps you’re buying your first home.

Maybe you’re moving house, remortgaging, or you’re self-employed.

You may have overtime, commission, bonus income, or receive income from more than one source.

These are all factors that different lenders assess differently.

That’s why it’s important to look at the whole market rather than assuming your existing bank will automatically be the best fit.

The Value of Independent Advice

A mortgage adviser doesn’t work on the assumption that one lender is right for everyone.

Instead, they take the time to understand your circumstances and search for lenders whose products and criteria best match your needs.

Sometimes, that lender may be your own bank.

Other times, it may not.

The important thing is that you’re making an informed decision based on what’s available to you, rather than limiting yourself to a single option.

Don’t Let Assumptions Limit Your Choices

Remaining loyal to your bank isn’t a bad thing.

In fact, there are occasions where your existing lender may offer exactly the right solution.

But it’s worth remembering that loyalty and suitability aren’t always the same thing.

Exploring your options doesn’t mean you have to change lenders.

It simply means you’re giving yourself the opportunity to compare what’s available before making an important financial decision.

Did You Know?

Many lenders have different ways of assessing income. One lender may include overtime, bonuses or commission in full, while another may only take part of it into account. That’s why two lenders can offer very different borrowing amounts to the same person.

Could This Be You?

If you’ve recognised yourself in this article, why not have a conversation with Prospect Tree Mortgages?

There’s no obligation, no pressure and no jargon, just straightforward advice to help you understand your options.

Sometimes the hardest part is making the first call, but many of our clients tell us afterwards that they wish they’d contacted us much sooner.

Your home may be repossessed if you do not keep up repayments on your mortgage. The information contained within was correct at time of publication but is subject to change (published 27 July 2026). This is for information purposes only and does not constitute advice.