The Top 10 Mistakes to Avoid when Buying Your First Home

Did you know that a staggering 82% of recent first-time buyers have regrets about their purchase, often related to unexpected costs and choices they wish they’d made differently? [5]

As a mortgage broker who has been helping people find their way onto the property ladder since 2005, I’ve seen first hand how easily small oversights can turn the dream of homeownership into a stressful ordeal. The process can feel stacked against you, but it doesn’t have to be that way.

With the right preparation, you can avoid the common pitfalls and make your first home purchase a confident and exciting step forward.

Key Takeaways

• • Financial preparation is crucial; gather your documents and get a Decision in Principle (DIP) before you even start looking at properties.
  • Never underestimate the true cost of buying, which includes stamp duty, legal fees, and survey costs on top of your deposit.
  • Your credit score directly impacts your mortgage eligibility and the interest rates you’ll be offered, so check it early.
  • Always commission an independent property survey; the lender’s valuation is for their benefit, not yours.
  • Understand your mortgage product thoroughly, including the interest rate type, term, and any early repayment charges.

1. Skipping Essential Financial Preparation

One of the biggest first time buyer mistakes I see is underestimating the level of financial readiness required before even speaking to a mortgage adviser.

It’s not just about saving for a deposit; it’s about having all your financial ducks in a row. Before a mortgage appointment, you need to gather a folder of essential documents. Lenders will conduct a thorough affordability assessment, so being prepared shows you’re a serious applicant.

Here’s a quick checklist of what you’ll typically need:

• Proof of Income: This usually means your last three months of payslips and your most recent P60. If you’re self-employed, it’s more detailed, often requiring two to three years of tax calculations (SA302s) and the corresponding tax year overviews.
• Bank Statements: You’ll need at least three months of statements for all your current accounts to show your income and expenditure.
• Proof of Deposit: Lenders need to see where the money came from, so you’ll need statements for your savings accounts. If it’s a gift, you’ll need a letter from the person providing it.
• ID and Proof of Address: A valid passport or driving licence, plus recent utility bills or council tax statements.

Beyond the paperwork, you need a realistic grasp of your budget.

While the average first-time buyer deposit now sits at £61,090 for a property costing £311,034 [3], the deposit is only part of the story.

You must also account for mortgage protection like life cover or income protection, which ensures your payments are met if the worst happens.

Getting a mortgage pre-approval, also known as a Decision in Principle (DIP), is a vital early step. It gives you a clear budget to work with and proves to sellers and estate agents that you are a credible buyer.

If you’re struggling with the initial savings, it’s worth checking if you can still use an existing Help to Buy ISA or look into government initiatives like the First Homes Scheme.

2. Neglecting Your Credit Score

Your credit score is one of the most critical factors in a mortgage application, yet it’s often overlooked until the last minute.

Think of your credit report as your financial CV. It’s what lenders use to carry out a creditworthiness evaluation, judging how reliably you’ve managed debt in the past. A higher score improves your mortgage eligibility and can also unlock better interest rates, potentially saving you thousands over the life of the loan. Ignoring it is a significant risk.

If you want to know if your credit score is mortgage ready, you need to check it sooner rather than later.

I advise every client to check their reports with all three main UK credit reference agencies: Experian, Equifax, and TransUnion. Each can hold slightly different information, so you need a complete picture. You can often get free access through various online services.

Once you have your reports, check them for any errors, such as incorrect addresses or accounts you don’t recognise. If you find mistakes, dispute them immediately.

Here are a few simple steps to improve your credit score:

• • Pay all bills on time: This is the golden rule. Late payments can have a big impact.
  • Register on the electoral roll: This helps lenders confirm your identity and address.
  • Reduce existing debt: Try to lower the balances on credit cards and loans. Lenders look at your total debt-to-income ratio.
  • Check for financial links: If you have a joint account with an ex-partner, their credit history could affect yours. Get a notice of disassociation if needed.
  • Avoid multiple ‘hard’ credit checks: A formal mortgage application leaves a ‘hard’ footprint. Too many in a short period can look like a sign of financial distress. A broker can perform a ‘soft’ check to assess your options without affecting your score.

3. Viewing Properties Without a Mortgage Agreement in Principle

This is a classic case of putting the cart before the horse, and it almost always leads to disappointment.

Viewing properties without having a Mortgage in Principle (also known as an Agreement in Principle or Decision In Principle) is like going to the supermarket without your wallet. You might fall in love with the perfect home, only to find out later that you can’t afford it. It’s a waste of your time, the seller’s time, and the estate agent’s time.

Securing a DIP from a lender or through a broker like myself is one of the most powerful moves you can make at the start of your journey. It’s a formal indication of what a lender is prepared to offer you, subject to a full application and property valuation. It shows estate agents that you are a serious, credible buyer with the financial backing to proceed.

In a competitive market, having a DIP can be the deciding factor that gets your offer accepted over someone else’s.

4. Underestimating the True Cost of Buying and Owning

The property’s purchase price is just the tip of the iceberg; many first-time buyers get caught out by the significant ancillary buying costs hiding beneath the surface.

It’s no wonder 82% of recent buyers expressed regrets, with underestimating costs being a primary reason. These transactional fees can add up to thousands of pounds, and if you haven’t budgeted for them, it can cause immense financial strain. You need a clear understanding of everything you’ll need to pay for, both as one-off fees and ongoing expenses.

Here’s a breakdown of the typical costs you need to budget for beyond your deposit:

Cost Category	Estimated Amount	Description
Stamp Duty Land Tax (SDLT)	Varies (Relief for FTBs)	A tax on property purchases. First-time buyers in England currently pay 0% up to £425,000. Use the official calculator for an exact figure.
Conveyancing/Solicitor Fees	£850 – £1,500+	The legal fees for transferring ownership. This includes the solicitor’s time and ‘disbursements’ (costs they pay on your behalf, like local authority searches).
Survey Costs	£400 – £1,000+	For an independent assessment of the property’s condition. A RICS HomeBuyer Report (Level 2) is common, but older properties may need a full Building Survey (Level 3).
Mortgage Fees	£0 – £2,000+	This can include an arrangement fee for securing your mortgage product and sometimes a booking fee.
Removal Costs	£300 – £1,000+	The cost of hiring a company to move your belongings.

And the costs don’t stop once you have the keys. As a homeowner, you’ll be responsible for ongoing expenses like council tax, utilities, buildings and contents insurance, and general maintenance. If you buy a leasehold property, you’ll also have ground rent and service charges to pay. You can get a clearer picture of your outgoings by using a tool like the MoneyHelper Budget Planner.

5. Insufficient Neighbourhood and Property Research

You’re not just buying a property; you’re buying into a neighbourhood, and failing to research it properly is a mistake that’s hard to undo.

I’ve heard from clients who loved their new house but quickly grew to dislike the area. This is backed up by research showing that area choice is a key regret for many recent buyers [5]. Your local area analysis should be as thorough as your property viewing. You need to consider if the location will fit your lifestyle now and in the next five to ten years.

My advice is to become a local detective. Visit the area at different times of the day and on different days of the week. What’s the traffic like during rush hour? Is it quiet at night? Speak to local residents if you can.

Use online tools to conduct your research: check school Ofsted reports, look up crime statistics on sites like Police.uk, and check the long-term flood risk via the Environment Agency.

You should also check the local council’s planning portal for any major developments planned nearby that could affect your quality of life or property value.

6. “It Looked Fine”: Skipping or Skimping on Property Surveys

Please, if you take only one piece of advice from this article, let it be this: do not skip the property survey.

Many first-time buyers mistakenly believe the mortgage lender’s valuation is a survey. It is not. The valuation is a brief check carried out for the lender’s benefit to ensure the property is adequate security for the loan. It offers you, the buyer, no protection and will not uncover underlying issues like damp, structural defects, or a faulty roof. Commissioning your own independent survey is the only way to get a true picture of the property’s condition.

The cost of a survey—a few hundred pounds—is tiny compared to the potential cost of fixing identified defects, which can run into tens of thousands.

A bad survey report doesn’t always mean you should walk away; it can be a powerful tool for renegotiating the purchase price. Here’s a brief look at the main survey types, which a RICS-registered surveyor can provide:

• • RICS HomeBuyer Report (Survey Level 2): Suitable for conventional properties in reasonable condition. It highlights issues like damp and subsidence but is non-intrusive.
  • RICS Building Survey (Survey Level 3): A much more detailed inspection, recommended for older properties (over 50 years), those in poor condition, or if you’re planning major work. It provides a comprehensive analysis of the property’s structure and condition.

7. Choosing the Wrong Conveyancer or Solicitor

The legal side of buying a home is handled by a solicitor or conveyancer, and choosing a slow or unresponsive one can add serious delays and stress to the process.

Your conveyancer handles all the legal due diligence, from carrying out property searches to checking the contract and managing the transfer of funds. It’s a critical role. The temptation is often to go with the cheapest quote or the firm recommended by the estate agent, but this can be a mistake. A proactive, communicative conveyancer is worth their weight in gold.

When choosing, get quotes from several firms and check their reviews. Ask about their current caseload to ensure they have time for you. Crucially, you must check that they are on your mortgage lender’s approved panel; if they aren’t, you’ll face delays and extra costs. Be sure to get a fixed-fee quote that clearly breaks down their fee and the “disbursements”—the third-party costs like local authority searches that they handle on your behalf.

You can find accredited professionals through The Law Society or the Council for Licensed Conveyancers.

8. Not Understanding Your Mortgage Options and Terms

With 41% of first-time buyers admitting they struggle to understand their mortgage options [5], it’s clear that many are at risk of committing to a product that isn’t right for them.

A mortgage is likely the biggest financial commitment you’ll ever make, so you have to understand the terms you’re agreeing to. Getting this wrong is one of the most serious First time buyer mistakes. You need to familiarise yourself with the core concepts before signing on the dotted line. It’s not just about the headline interest rate; it’s about the entire package. There are some essential mortgage questions every first-time buyer should know the answers to.

Here are the key terms to get to grips with:

• • Interest Rate Type: Is it a fixed rate, where the rate is set for a specific period (e.g., 2, 5, or 10 years), or a variable rate, like a tracker, which can go up or down? Choosing the best type of mortgage for first time buyers also depends on your attitude to risk.
  • Loan to Value (LTV): This is the percentage of the property’s value you’re borrowing. A lower LTV (meaning a larger deposit) generally gives you access to better interest rates.
  • Loan Term: The total length of time you have to repay the mortgage, typically 25 to 35 years. A longer term means lower monthly payments but more interest paid overall.
  • Early Repayment Charges (ERCs): These are fees you’ll have to pay if you want to leave your mortgage deal during the initial fixed or tracker period. They can be substantial, so you need to be aware of them.

As an independent mortgage broker, my job is to explain all these options clearly and compare products from across the market to find one that suits your personal circumstances.

9. Leasehold Labyrinths: Overlooking the Implications of Property Tenure

Understanding the difference between freehold and leasehold property tenure is absolutely essential, as getting it wrong can lead to costly surprises down the line.

In simple terms, freehold means you own the building and the land it stands on outright. Leasehold means you own the right to occupy the property for a fixed number of years, but a freeholder (or landlord) owns the land. Most flats in the UK are leasehold, as are some new-build houses.

The issue with leasehold is that it comes with lease obligations and potential pitfalls. You must have your conveyancer scrutinise the lease agreement for these key things:

• • Lease Length: If the remaining lease is short (typically under 80-85 years), the property can become difficult to get a mortgage on and hard to sell. I’d always want to see a lease of at least 90 years, and preferably much longer.
  • Ground Rent: This is an annual rent paid to the freeholder. You need to check if it’s a fixed amount or if it contains clauses that allow it to escalate over time.
  • Service Charges: These are payments for the upkeep of communal areas in a block of flats. They can be high and variable, so you need to see a history of what’s been charged.
  • Covenants: The lease can contain restrictive covenants, such as rules against keeping pets or making alterations to the property.

The Leasehold Advisory Service (LEASE) is a great government-funded resource for impartial advice on this topic.

10. Overstretching Yourself Financially

It can be incredibly tempting to borrow the absolute maximum a lender will offer you to secure your dream home, but this can lead to serious financial overextension.

Becoming “house poor”—where an excessive portion of your income is consumed by your mortgage and housing costs—is a stressful and precarious position to be in. It leaves you with little room for savings, holidays, or other life goals, and makes you vulnerable to any unexpected costs or rises in interest rates. When I work with clients, I don’t just focus on what they *can* borrow, but what they can *comfortably* afford.

Creating a realistic household budget is non-negotiable. You need to account for your mortgage payment, council tax, utilities, insurance, maintenance, and your general living expenses.

Once you have a figure for your monthly mortgage payment, stress-test it. How would you cope if interest rates went up by 1%, 2%, or even 3% when your initial deal ends? Having a healthy emergency fund—ideally three to six months of essential outgoings—provides a crucial financial buffer against illness or job loss.

Following some smart mortgage application tips for first time buyers can help you present your finances in the best light without pushing your budget to the breaking point.

Ready to Take Control of Your Home Purchase?

Feeling prepared is the best way to reduce stress and avoid costly mistakes on your home buying journey.

Our free, downloadable Mortgage Ready Checklist is designed to guide you through every critical step, from financial checks to application requirements. Get your copy today and move forward with confidence.

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Sources

[1] https://home.barclays/news/press-releases/2025/01/-1-in-6-homeowners-intend-to-move-in-2025–as-growth-in-mortgage/
[2] https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/is-now-a-good-time-to-buy-a-house/
[3] https://www.finder.com/uk/mortgages/first-time-buyer-statistics
[4] https://www.uswitch.com/mortgages/first-time-buyer-statistics/
[5] https://www.moneyboxapp.com/82-of-recently-successful-first-time-buyers-have-regrets-and-call-for-better-support-for-next-generation-of-home-buyers/
[6] https://www.gov.uk/first-homes-scheme
[7] https://www.moneyhelper.org.uk/en/homes/buying-a-home/first-time-buyer-money-tips