Buying your first home is an exciting step, but it can also feel overwhelming. Many first-time buyers face challenges that can slow down the process or add unnecessary costs. Here are ten of the most common mistakes to avoid when starting your property journey.
1. Not setting a realistic budget
It’s tempting to look at homes at the top end of what you think you can afford, but overestimating can lead to financial strain later. A realistic budget should take into account your monthly repayments as well as ongoing costs such as council tax, utility bills, and insurance. You should also leave room for some contingency as owning a home often throws unexpected costs at you! By planning cautiously, you’ll be better prepared for unexpected changes in your circumstances.
2. Forgetting about additional purchase costs
Beyond the purchase price, there are many extras to consider: Stamp Duty, solicitor’s fees, surveys, removals, and even furnishing your new home. These can quickly add up to thousands of pounds. Be sure to include all of these costs within your budget so you know exactly where you stand.
3. Not checking your credit report
Your credit history will directly impact the mortgage deals available to you. Checking your report early means you can correct errors, close unused accounts, and take simple steps to improve your profile before you apply. A stronger credit record can lead to more favourable terms.
4. Relying only on one lender
Each lender has different criteria and products, and the first offer you see may not be the most suitable for your circumstances. By comparing across a wider market, often with the help of a broker, you may find more competitive rates or options that better suit your circumstances – particularly if you don’t fit into a standard ‘box’ such as if you’re self-employed.
5. Overlooking mortgage agreements in principle
An Agreement in Principle shows both estate agents and sellers that you’re a serious buyer. It also provides clarity on how much you may be able to borrow. Without one, you risk delays once you find a property, and in competitive markets you may even lose out to another buyer who is better prepared.
6. Underestimating the importance of location
The property itself may be appealing, but the neighbourhood can have just as much impact on your quality of life and future resale value. Research schools, transport links, shops, and local developments. A home in the wrong location may quickly lose its shine, even if it ticks every box on paper.
7. Making big financial changes during the process
Lenders often re-check your finances before final approval. Taking out a loan, changing jobs, or making large purchases during this time could affect affordability assessments. Staying financially stable until your mortgage has completed gives you the best chance of a smooth process.
8. Skipping surveys
A survey can highlight potential issues that may impact the property’s value or require costly repairs. While skipping the survey may save time and money in the short term, we highly recommend you factor one in to your moving costs. If the survey finds nothing, you’ve bought peace of mind. If it does highlight problems, you may be able to renegotiate the price, plan for repairs, or even walk away from a property that would have been a financial burden.
9. Letting emotions take over
It’s natural to get attached to a property, but ‘thinking with your heart’ can lead to overpaying or overlooking practical drawbacks. Try to view homes with a clear head and think about long-term suitability rather than only first impressions. Having a budget and criteria written down before you start can help keep decisions objective.
10. Not seeking professional guidance
Buying a home involves many steps — from mortgage selection to conveyancing. Without professional advice, it’s easy to miss details that may affect costs or timelines. Mortgage brokers, solicitors, and surveyors each play a role in protecting your interests and making the purchase as smooth as possible.
Should first-time buyers use a mortgage broker?
A mortgage broker can explain your options, help find the most suitable mortgages for first-time buyers for your circumstances, and guide you through the application process. This can save time and provide access to a wider range of lenders.
Avoiding mistakes as a first-time buyer
By understanding and planning for these common mistakes, you can make your first home purchase more affordable and less stressful. If you’d like to learn more, take a look at our guide to first-time buyer mortgage jargon, which explains key terms in plain English, and the very best of luck in your home-buying journey!
