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7 Costly Mistakes First-Time Buyers Make

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Video Transcript


1. Waiting Until You Save a 10% Deposit

Many buyers assume a 10% deposit is mandatory and delay entering the property market.
However, there are alternative government schemes and low-deposit options available:

  • 5% deposit mortgages
  • £5,000 / £10,000 deposit schemes
  • Shared ownership options
  • Regional initiatives (e.g., Help to Buy Wales)

2. Not Knowing Your Credit Score First

Your credit history dictates your mortgage viability and interest rates.
It is highly recommended to check your comprehensive credit file (using
multi-agency services like Checkmyfile) to catch and fix any inaccuracies
before lenders see them.

3. Forgetting the Extra Costs of Buying

Many buyers focus solely on the property price and deposit, neglecting
secondary expenses. You must factor in:

  • Stamp Duty
  • Legal/Solicitor fees
  • Property survey costs
  • Mortgage arrangement fees
  • Moving company fees

4. Overlooking the Long-Term Resale Value

A home might fit your needs perfectly today, but its future marketability
matters. Avoid overlooking negative location elements that could impact
future value, such as:

  • Proximity to an overly busy school zone (causing traffic congestion)
  • Close proximity to major motorways or loud railway infrastructure

5. Not Exploring All Funding Routes

Limiting yourself strictly to personal savings means you might miss out on
faster paths to ownership. Consider alternative avenues:

  • Gifted deposits from family members
  • Guarantor mortgage support
  • Joint Borrower Sole Proprietor (JBSP) arrangements

6. Skipping a Comprehensive Home Survey

Relying strictly on a basic mortgage valuation is a risk. A mortgage
valuation protects the lender, not you. Skipping an independent,
comprehensive home survey can leave you exposed to hidden structural
issues, dampness, or roofing problems that cost thousands to fix
post-purchase.

7. Opening New Lines of Credit Before Completion

Once your mortgage is provisionally approved, your credit activity remains
under a microscope. Lenders re-check credit records right before final
completion. Taking out new credit can cause your offer to be withdrawn:

  • Credit card debt
  • Personal loans
  • Hire Purchase (HP) agreements
  • “Buy Now, Pay Later” schemes (e.g., Klarna)

Note: For personalized guidance or to speak to a specialist, the video
highlights booking an appointment directly via 020 3011 1986.