Common mistakes first time buyers make – and how to avoid them

When it comes to getting onto the UK property ladder, today’s first time buyers don’t have an easy job. There are several obstacles that might just stand in your way, with saving for your first house deposit alone proving to be a mammoth task. The latest figures reveal that the average first time buyer needs 41% more as a mortgage deposit than a decade ago – that’s even after adjusting for inflation! Yet, this isn’t the only hurdle to jump when searching for and securing a property.

In this blog post, we take a closer look at the most common mistakes made by first time buyers, and crucially provide advice on how to avoid them!

Mistake #1 – Only saving for a deposit

While a hefty sum to save, your house deposit isn’t the only expense you’ll have to foot the bill for when purchasing a property in East Anglia or the rest of the UK. We’ll let Zoopla summarise the costs to expect when buying your very first pad:

“Stamp duty is the biggest extra expense when it comes to buying a home. But, if you’re buying a cheaper property or are a first-time buyer, you may be exempt. The total extra costs of buying a home can add up to around 15% of the property’s value – covering stamp duty, solicitor’s fees, surveys, mortgage fees and removals.”

Before even starting your property search, do your research to get the latest costs for all these additional expenses. You’ll have to budget for solicitor fees, surveys, mortgage arrangement fees, removals, insurance, furnishings and ongoing maintenance, plus keep an emergency fund should anything else crop up after completion.

By being aware of all the costs early, you can give yourself financial breathing room and comfortably afford your new mortgage payments once you’re all moved in.

Mistake #2 – Skipping the surveys

You may want to keep those additional expenses down, but a property survey isn’t something to be skipped. It may be more affordable now to rely solely on the lender’s valuation, but remember, this is designed to be for the lender’s benefit, not yours. It also doesn’t identify defects as thoroughly as a property survey, which could leave you significantly out of pocket later down the line.

With this in mind, you should always commission an independent survey to get the facts before proceeding with the purchase.

Mistake #3 – Not obtaining an AIP

An agreement in principle (AIP) may seem like a piece of paper, but it can mean the difference between being taken seriously as a buyer and missing out on a property you love. Obtaining an AIP isn’t the song and dance that you think it is, yet many first time buyers overlook this important step. Instead, they view and shortlist homes before getting an agreement in principle. Be warned, this will only lead to disappointment and missed opportunities.

Dodging this common mistake is easy; simply, work with a mortgage advisor like us to secure your AIP. While an agreement in principle isn’t a guarantee that you’ll be able to secure the official mortgage offer, it can give you a clear understanding of which properties you can afford to search for.

Mistake #4 – Not understanding your options

Choosing the wrong mortgage product can cost you thousands over the life of the loan. With so many different mortgage products and rates to explore, navigating the mortgage market alone can be confusing and daunting.

Call on our independent mortgage advisors for guidance, and find the mortgage deal that works for you now and long into the future.