5 First-Time Homebuyer Mistakes to Avoid

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.