Buying your first home is an exciting milestone—but it can also be one of the most overwhelming financial decisions you’ll ever make. With so many moving parts and unfamiliar terminology, it’s easy to make mistakes that could cost you time, money, and unnecessary stress.
At FPM Advice Centre, we specialise in helping first-time buyers navigate the mortgage process with confidence. In this guide, we break down the most common mortgage mistakes and how to avoid them—so you can move forward with clarity and peace of mind.
House Hunting Before Knowing What You Can Afford
One of the biggest pitfalls for first-time buyers is falling in love with a property before understanding your borrowing limits. Without a clear picture of your affordability, you could waste time viewing homes that are out of reach—or worse, overstretch your finances.
What to do instead:
Use a reliable mortgage affordability calculator or speak to an independent mortgage advisor who can assess your income, debts, and outgoings. Setting a realistic budget from the outset puts you in a stronger buying position.
Don’t guess your budget—get a personalised affordability check today.
Applying for a Mortgage Without Checking Your Credit Report
Your credit report plays a crucial role in your mortgage application. It tells lenders how reliable you are as a borrower and influences how much you can borrow—and at what interest rate.
What to do instead:
Before applying, check your credit file with all major UK credit agencies (Equifax, Experian, and TransUnion). Correct any errors, pay down outstanding debts if you can, and avoid missed payments in the months leading up to your application.
Check your credit score now—it could make or break your application.
Skipping the Decision in Principle (DIP)
A Decision in Principle (DIP) shows how much a lender is prepared to offer you, based on a snapshot of your financial situation. Many first-time buyers skip this step and dive straight into house hunting—only to find out later that their dream home is out of reach.
What to do instead:
Get your DIP before you start booking viewings. Not only will this give you a clear budget, but estate agents and sellers will take you more seriously as a buyer.
Secure your DIP early and shop for homes with confidence.
Underestimating the True Cost of Homeownership
Buying a home isn’t just about your deposit and mortgage repayments. There are ongoing costs such as council tax, insurance, utilities, maintenance, and potential repairs. Failing to account for these can leave you financially stretched.
What to do instead:
Work with a mortgage advisor who can help you build a full monthly budget—including the hidden costs of homeownership—before you commit.
Plan ahead to avoid nasty surprises down the line.
Taking Out New Credit Before Applying for a Mortgage
Opening new credit accounts or making large purchases on finance before your mortgage is approved can raise red flags with lenders. It affects your debt-to-income ratio and could delay or derail your application.
What to do instead:
Hold off on applying for any new credit—such as credit cards, car finance, or buy-now-pay-later schemes—until after your mortgage is finalised.
Focus on your mortgage first—leave major purchases for later.
Skipping Property Surveys and Inspections
Trying to cut corners by skipping a professional property survey might save you money upfront—but it could cost you much more in the long run. Hidden issues like damp, subsidence, or structural damage are often missed without an expert inspection.
What to do instead:
Invest in a homebuyer’s report or building survey to identify potential issues early. It could give you bargaining power—or help you avoid a costly mistake.
Protect your investment—get the property checked properly.
Forgetting About Additional Fees and Legal Costs
Many first-time buyers focus solely on saving for their deposit and forget to budget for solicitor fees, mortgage arrangement fees, valuation costs, and stamp duty (if applicable). These expenses can quickly add up.
What to do instead:
Speak to a mortgage advisor who can outline all the costs involved so you’re financially prepared from day one.
Plan for every cost—avoid delays and financial pressure at the final hurdle.
Get Expert Guidance from FPM Advice Centre
Buying your first home doesn’t have to be stressful. With the right advice and planning, the process can be smooth, efficient, and even enjoyable.
At FPM Advice Centre, we’re here to support you through every stage of your home-buying journey. Our expert mortgage advisors offer clear, jargon-free guidance to help you secure the right mortgage deal and avoid costly mistakes.
Ready to get started? Contact FPM Advice Centre today for personalised mortgage advice and access to the best deals on the market.