First-time buyers
5 First-Time Homebuyer Mistakes to Avoid
Buying your first home shouldn't be a rushed decision. These are the five mistakes we see most often — and how to avoid each one before you apply.
1. Failing to Check your Credit Score.
- Register on the electoral roll at your current address.
- Build up your credit score history, for example by getting a credit card.
- Pay off your credit account on time.
- Keep to your credit utilisation law.
- Only borrow what you can afford.
2. Saving up too Little.
3. Not Getting an Agreement in Principle.
4. Choosing the Wrong Type of Mortgage for You.
- Fixed-rate: These mortgages give you the same monthly payment until the agreed date, no matter what happens to interest rates in the market. It normally works in periods of 2,3 and 5 years.
- Tracker mortgages: In this case, the mortgage is based on the Bank of England’s Base Rate, and rises and falls along with it. The periods differ between “lifetime” and 2 or 3 years.
- Standard Variable Rate (SVR): The rates in a SVR are decided by your lender. Normally you’ll start with a fixed-rate or tracker mortgage period, and once it ends, you’ll move onto a SVR.
5. Not Using the Right Broker.
Frequently asked questions
Most lenders look for at least 5% of the property value, though a larger deposit usually opens up more products and lower rates. The exact figure depends on your income, outgoings and the lender's criteria.
An agreement in principle is an indication from a lender of how much they would be likely to lend you. It helps you set a realistic budget and shows estate agents you are a serious buyer.
It is a sensible step. Checking your file lets you correct mistakes or spot fraudulent activity before a lender sees it, which can make a real difference to the options available.
Speak to a Mortgage Adviser
Get expert advice across a comprehensive panel of 90+ lenders tailored to your situation. We'll find the right deal — and any costs are always agreed upfront.
Qualified Advisers • Comprehensive lender panel • Costs always agreed upfront