Buying your first home is a major milestone. It can be exciting and sometimes overwhelming, especially when you’re sorting out mortgages, deposits, and legal steps all at once. To make things easier, follow these steps: set your budget and get an Agreement in Principle, find a property, make an offer, arrange your mortgage, have surveys done, finalize your offer, complete legal checks, and finally, complete the purchase and move in.
At Sims Mortgages & Protection, we often talk to first-time buyers who try hard to make good choices but still nearly make expensive mistakes. This usually happens because no one has clearly explained the whole process to them.
Below are some of the most common first-time buyer mortgage mistakes we see, along with practical ways to avoid them.
Mistake 1: Looking at Houses Before Knowing Your Real Budget
Many buyers start their journey by browsing property websites and booking viewings, only to discover later that the mortgage they assumed they could get isn’t realistic.
Online calculators are useful, but lenders consider more than your salary. They look at your monthly expenses, credit commitments, dependants, and run affordability stress tests. These tests check if you could still pay your mortgage if interest rates go up. For example, a lender might see if you could handle a 2% rise in rates without financial trouble. This helps make sure your mortgage stays affordable if things change.
What to do instead: Get an Agreement in Principle before viewing properties. This gives you clarity, confidence, and reassurance that you’re looking within a realistic price range.
Mistake 2: Focusing Only on the Lowest Interest Rate
It’s easy to think the lowest rate is always the best deal, but that’s not always true.
Some mortgages have higher arrangement fees, strict early repayment charges, or less flexibility. If your situation changes, these can quickly become costly.
What to do instead: Look at the overall cost of the mortgage, not just the headline rate. This includes fees, incentives, and the length of your stay at the property.
Mistake 3: Leaving Protection Until the Last Minute
Many people see protection as an afterthought, but it’s a key part of owning a home. Protection includes life insurance, income protection, and critical illness cover, all of which help keep your
finances safe. If you get sick, have an accident, or can’t work for a while, your mortgage payments still need to be made. This is when many buyers feel vulnerable.
What to do instead: Discuss protection alongside your mortgage, so it’s properly tailored to your income, lifestyle, and future plans.
Mistake 4: Trying to Figure Everything Out Alone
There’s plenty of advice online, but not all of it fits your personal situation or is accurate.
Mortgages are long-term financial commitments, and the wrong decision can cost thousands over time.
What to do instead: Talk to a mortgage adviser early. Good advice isn’t about selling products; it’s about helping you make informed choices.
Frequently Asked Questions
Do first-time buyers get better mortgage rates? Sometimes, but this depends on your income, deposit, credit history, and the wider market.
Can I buy with a 5% deposit? Yes, although options and affordability vary and should be reviewed carefully.
Final Thought
Buying your first home doesn’t need to feel daunting. With the right guidance, it can be an exciting and confident step forward.
Like this Blog? Why not check out our “First-Time Buyer Checklist – Are You Ready to Buy a Home?” Blog
The information contained within was correct at the time of publication but is subject to change.