Taking your first step onto the property ladder is one of life’s most exciting milestones. But for many, the journey from saving a deposit to getting the keys can feel like a maze of complex decisions and potential pitfalls. The process can be daunting, but being aware of common mistakes is the best way to ensure a smooth and successful purchase.
As we navigate the property market of 2025, being prepared is more important than ever. Here are five common mistakes that first-time buyers make, and how you can avoid them.
1. Underestimating the True Cost of Buying
The deposit is the first major savings goal, but it’s far from the only upfront cost. Many first-time buyers get so focused on the deposit that they forget to budget for the other essential expenses, which can add up to thousands of pounds.
- The Mistake: Not budgeting for costs like solicitor fees, mortgage valuation and survey fees, mortgage arrangement fees, and removal costs. Stamp Duty may also apply depending on the property price.
- How to Avoid It: Before you start your property search, create a detailed budget that includes a buffer of at least £3,000-£5,000 for these additional costs on top of your deposit.
2. Not Checking Your Credit Score in Advance
Your credit score is a vital component of your mortgage application. Lenders use it to assess your reliability as a borrower, and a low score can lead to a rejection or a higher interest rate.
- The Mistake: Applying for a mortgage without knowing what’s on your credit file. Old, forgotten debts or even simple errors like an incorrect address can negatively impact your score.
- How to Avoid It: At least six months before you plan to apply for a mortgage, get copies of your credit report from all three main UK agencies (Experian, Equifax, and TransUnion). Check them for errors and take steps to improve your score, such as paying down debts and ensuring you are on the electoral roll.
3. Only Speaking to Your Own Bank
It’s tempting to simply walk into your own bank, where you have a current account, to ask for a mortgage. While convenient, this approach severely limits your options.
- The Mistake: Assuming your bank will offer you the best deal. They can only offer you their own products, meaning you could miss out on a more suitable mortgage with a lower interest rate from another lender.
- How to Avoid It: Use an independent mortgage advisor. An expert broker can search thousands of products from across the entire market to find the best possible deal for your circumstances. For tailored first-time buyer advice, the team at hastings mortgage broker can provide access to a huge range of lenders.
4. Making Big Financial Changes Before Completion
You’ve got your mortgage offer—congratulations! But the process isn’t over yet. Lenders can, and often do, run final credit checks just before you complete the sale.
- The Mistake: Changing jobs, taking out a large car loan, or running up significant credit card debt after your mortgage has been approved. Any major change to your financial situation could cause the lender to withdraw their offer.
- How to Avoid It: Keep your finances as stable as possible from the moment you apply until the day you get your keys. Hold off on any large purchases or career changes until the sale is complete.
5. Starting to View Properties Without a Mortgage in Principle
Viewing houses is the fun part, but falling in love with a property you can’t afford is heartbreaking. It also puts you at a disadvantage when it comes time to make an offer.
- The Mistake: Not having a Mortgage Agreement in Principle (AIP) before you start your search.
- How to Avoid It: An AIP is a statement from a lender confirming that they would, in principle, be willing to lend you a certain amount. It gives you a clear budget, shows estate agents you are a serious and credible buyer, and puts you in a strong negotiating position.
Buying your first home is a huge achievement. By avoiding these common errors and seeking professional guidance, you can navigate the process with confidence and turn your homeownership dream into a reality.
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