15 Things You Should Not Do When Buying Your Property

In this video, we’re discussing 15 things that you should not be doing when buying your first property. To talk about this, I have Ifthikar with me.

Introduction

Host: Hello, how are you doing?

Ifthikar: I’m really good, how are you?

Host: Very well, thanks! So, in our last video we met in Galle, and now we’re in Colombo. How is it treating you?

Ifthikar: Colombo is different to Galle. Galle has lovely beaches, but Colombo offers something else—beautiful places to eat (I love my food!), amazing street food, stunning architecture, and great shopping spots. It’s a totally different but lovely experience.

1. Don’t Make an Offer Without Checking Affordability

Host: Why is this important?

Ifthikar: Many people make offers without knowing if they can actually afford it. Just because a friend got a mortgage for £300,000 doesn’t mean you can. Your financial situation—car loans, other commitments—may be different. Go one step further: get a Decision in Principle (DIP). This gives you a clear idea of what you can afford, provided you give honest information.

2. Don’t Borrow Money for Your Deposit

Host: Does this include borrowing from lenders or family members?

Ifthikar: Yes. Most lenders don’t like it if you borrow for your deposit. Even if it’s from family, it’s still seen as a commitment since it needs to be repaid. However, if it’s a gift from family, that’s perfectly fine and treated differently.

3. Don’t Take on New Credit Commitments Before Applying

Host: Can you explain this?

Ifthikar: Absolutely. Avoid borrowing money before or during the mortgage process. Things like car loans, credit card balances, personal loans, or payday loans can hurt your application. Even if you already got a Decision in Principle, new debt can cause problems later.

4. Don’t Run Unnecessary Credit Checks

Host: If a first-time buyer runs a credit check, does it affect their credit score?

Ifthikar: If you run a credit check with a credit reference agency, that’s fine. But if a lender runs it, it can impact your credit score—especially if it’s a hard search. Try to do only soft searches at the early stages. Too many searches, even soft ones, can turn into a hard search, lowering your score.

5. Don’t Go for the Cheapest Mortgage Deal

Host: Why do we sometimes recommend deals that aren’t the cheapest?

Ifthikar: Because the cheapest isn’t always the best or most suitable. A deal with a lower rate might have higher fees—valuation, product, or exit fees. Also, some deals that look good online may not suit your personal situation. Always prioritize suitability over price.

6. Don’t Exchange Contracts Until You’re Absolutely Sure

Host: Why is this important?

Ifthikar: The exchange is the point of no return. Once you exchange, you usually pay a 10% deposit. If you pull out afterward, you lose that deposit and may be liable for damages, especially in a property chain. So, only exchange when you’re 100% sure you can complete the purchase.

7. Don’t Ignore Special Conditions in the Mortgage Offer

Host: Why should buyers read their mortgage offer carefully?

Ifthikar: Because lenders sometimes include special conditions—for example, paying off a small outstanding credit card balance before completion. Ignoring these can cause last-minute issues or delays. Always read and fulfill all conditions early.

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8. Don’t Go for the Cheapest Solicitor

Host: Why does this matter?

Ifthikar: Cheap isn’t always good. Many low-cost conveyancers handle large volumes, meaning slow responses and delays. Choose a solicitor with good references—either recommended by your broker or friends. Paying £100 more for a good solicitor is worth it when buying a £500,000 property.

9. Don’t Forget to Instruct Searches After Application

Host: What’s the risk of delaying searches?

Ifthikar: Searches can take weeks. If you wait for the mortgage offer before starting them, your whole process slows down. If you’re sure about the property, instruct searches immediately to save time, even though it involves some upfront cost.

10. Don’t Borrow Money After the Offer Is Issued

Host: Why is this a problem?

Ifthikar: Banks sometimes run soft checks again just before releasing funds. If you’ve taken new loans or used credit, it can affect your affordability and even cause your mortgage offer to be withdrawn. Avoid all new debt until completion.

11. Don’t Forget to Instruct a Survey

Host: Why is a survey so important?

Ifthikar: The lender’s valuation is basic—it just checks if the property is worth the mortgage amount. A survey goes deeper, inspecting for structural issues, cracks, or hidden damage. Especially for old or expensive properties, a detailed survey is essential to avoid costly surprises.

12. Don’t Avoid Mortgage Protection (Insurance)

Host: Many think insurance is just a marketing trick. Why is it necessary?

Ifthikar: It’s not a gimmick—it’s protection.

Home insurance is usually compulsory. It protects you if your house is damaged or destroyed.

Life insurance ensures your family isn’t burdened with the mortgage if something happens to you.

Income protection helps pay the mortgage if you’re injured or ill.

Critical illness cover supports you financially if you’re diagnosed with a serious condition.

These protect your biggest investment—and your family’s security.

13. Don’t Forget Your Parents Can Support Your Mortgage

Host: How can parents help?

Ifthikar: Parents can help by:

Gifting money for the deposit, or

Joining the mortgage under the Joint Borrower, Sole Proprietor scheme.

This option (offered by some banks) helps increase affordability without affecting ownership. It replaced the older guarantor system.

14. Don’t Forget There Are Free Mortgage Brokers

Host: Really? There are free brokers?

Ifthikar: Yes! Many brokers (like us) get paid by the bank, not the client. Some charge £300–£700 in fees, but free brokers can offer the same service. Always check reviews and credentials to find a reliable one.

15. Don’t Be Afraid to Take Advice or Ask Questions

Host: Many first-time buyers feel intimidated by the process. What’s your advice?

Ifthikar: That’s natural! Buying a house is a big step. The key is to get guidance from an experienced broker or advisor who will walk you through every stage. Even if you have helpful family members, brokers often know the finer details and can save you time, stress, and money.

Closing Message

If you haven’t seen our video on how solicitors are involved in the mortgage process, click right here to watch it!

Dear first-time buyers — avoid these 15 mistakes to make your property purchase smoother. If you’re feeling nervous about buying your first home, contact us — we’re here to help!

Thank you everyone for watching! And special thanks to Ifthikar for joining us today.

Ifthikar: Thank you for having me. It was a great pleasure.

Host: Don’t forget to like, subscribe, and hit the notification bell to stay updated on our latest videos.