Three massive first-time buyer mistakes - Video script

Buying your first house is a big step, but many first-time buyers make these classic mistakes

Buying your first house is a big step, but many first-time buyers make these classic mistakes

There are few bigger financial commitments that buying your first home – it’s a move that really merits a lot of careful planning and preparation. But many of us end up making some pretty daft mistakes that drag the whole process out, and could end up costing you a fortune.

#1 – It’s good to talk

Not everyone likes to use a mortgage broker, but in my view they are absolutely essential if you are buying your first home.

First off, they can help you work out the right mortgage for your own circumstances, and talk you through some of the jargon that can make the whole mortgage world pretty confusing. But just as importantly they can also hold your hand through the housebuying process itself, which can be pretty daunting otherwise.

We have a team of fee-free mortgage brokers at lovemoney.com who can help you with any question, large or small.

#2 – It’s not all about the rate

First-time buyers tend to obsess about getting the lowest interest rate they can find on their mortgage. Obviously you want to pay as little as possible, but you have to take into account other factors, such as whether that rate will rise as Bank Base Rate does, and how much it will cost you in product fees just to get the mortgage.

While the rate might look like a steal, it could cost you thousands to get it, compared to a fee-free deal which will actually cost you less in the long run.

#3 – Chase everyone

There’s lots of different people involved in a property transaction – solicitors, brokers, estate agents. As a result it’s very easy for the whole process to slow right down to a halt. So make a list of their contact details, and try to call them once a week to get an update on what’s outstanding, and if there’s anything you can do to help speed up the process.

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