First-Time Buyer? Here’s 6 Massive Mistakes To Avoid To Secure Your Mortgage


Becoming a homeowner is an amazing journey and a very happy time for yourself but it can also be quite daunting and scary at times. We’ve put together this blog to help you avoid some common mistakes first time buyers make!

Mistakes to avoid as a first-time buyer:

  • No Agreement In Principle (AIP)
  • Underestimating Costs
  • Unrealistic Budget
  • No Protection Insurance
  • Credit Score
  • Choosing the Wrong Mortgage Type

Agreement In Principle

An AIP is generally valid for between 30 & 90 days. Obtaining one lets you know what your budget is for your first home and makes house hunting much easier. The estate agent and seller of the property also get the impression that you’re serious. Not having an AIP could mean you’re wasting your time looking at certain houses as lenders may not be willing to loan you that amount of money, it’s always good to get your AIP before you begin looking at houses to avoid that from happening.

Underestimating Costs

There are more costs involved in buying a home than you may think. It’s easy to underestimate these costs including; valuation, house survey and legal costs as well as, insurances that are required to protect you and your home. Falling short for these costs can cause issues for yourself and delay the process while you gather funds.

Unrealistic Budget

A similar issue to avoid is setting an unrealistic budget and not having enough each month because of this. First time buyers can sometimes expect to be able to afford all of their outgoings by setting budgets unrealistically lower than what it actually should be. Be mindful of this when you’re setting out your budget for each month.

No Protection Insurance

Protection insurance is there for if you’re ever unable to work due to an accident or illness as you will still need to be able to pay your bills. Income protection insurance will help you with this and is key to ensuring you have financial resilience. Life and critical illness insurance is also something you need to strongly consider. It will also cover you and look after your family if the worst were to happen. Especially after likely signing up to the biggest debt of your life – your mortgage!

Not Checking Your Credit Score

It’s important to check your credit score in advance so you have plenty of time to fix any issues before applying for a mortgage. Your credit score is crucial and plays a big role in if or how much lenders will be willing to loan you.

Choosing the Wrong Mortgage Type

There are a lot of mortgage options out there; fixed, discounted and tracker are just some examples. It’s important to not only think about the initial rate but also what works for you long term! By working with a mortgage adviser, you will get personalised advice. Get in touch today for a free first initial consultation so we can understand your individual requirements and needs going forward and help you in obtaining your mortgage so you can finally move into your OWN home! 

Going Forward

Taking everything in this blog into consideration will help you become more prepared for buying your first home! Don’t rush and make sure everything is in order, we can help you throughout the process and be there if things get a bit daunting!

Barfield Financial Advisors | Mortgage, Investment & Insurance Advice

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