First-Time Buyer Costs, Mistakes to Avoid & Why Use an Independent Broker
Alongside your monthly mortgage costs you will also need to budget for other costs associated with house purchases. Some or all of the following may apply, depending on your circumstances:
Our fees
Choicemortgages charge an administration fee of £595. This is payable on application and is non-refundable.
Mortgage fees
Mortgage fees include arrangement, booking, and valuation charges set by the lender. Some mortgages offer fee-free options, while others add fees to the loan. It’s important to factor these costs into your budget and compare deals based on overall cost, not just interest rates.
Solicitor / Conveyancing fees
Solicitor or conveyancing fees cover the legal work required to transfer property ownership. This includes searches, contracts, and liaising with lenders and sellers. Costs vary depending on property value and complexity and usually include additional charges such as local authority searches and Land Registry fees.
Survey costs
It’s often sensible to have a building survey undertaken before buying a property. A survey helps identify potential issues, future repair costs, and risks before you commit to buying the property. Survey costs vary by property size and level of detail required.
Moving costs
Moving costs include hiring a removal company, transport, packing materials, and possible storage. Costs vary depending on distance, volume of belongings, and services required. Planning ahead, decluttering, and comparing quotes can help reduce expenses on moving day.
Furniture and setup costs
Furniture and setup costs cover essentials such as beds, sofas, appliances, and interior decoration, as well as utility setup and internet installation. These expenses can add up quickly, especially for first-time buyers, so budgeting for gradual purchases can help manage costs effectively.
Common First-Time Buyer Mortgage Mistakes to Avoid
Only speaking to one bank
High street banks will only offer their own mortgage products. Their advisors may be helpful, but their offering is limited so it’s always best to talk to an independent mortgage broker. Independent brokers have access to a wide range of mortgages so can secure the best deal for you, given your specific circumstances and on occasion may be able to access exclusive deals not available on the high street.
Ignoring future rate changes
Owning your own home provides a wonderful sense of security. Putting your roots down, providing space for your family to grow and investing in your future. It can be easy to forget that the property doesn’t actually belong to you – yet! As a mortgage holder you will be required to pay for your home over a long period. And each time your fixed term agreement ends you’ll need to negotiate a new deal. This could mean your monthly costs increase over time, depending on the Bank of England Base Rate and other factors. It’s always a good idea to plan ahead and budget for any changes in advance, to avoid nasty surprises. A mortgage broker should contact you before any mortgage product expiry date, thereby giving you time to review the options available.
Overstretching budgets
No doubt you’ll have heard or read the phrase “Your home may be repossessed if you don’t keep up with payments on your mortgage”. It’s important that you don’t default on your monthly mortgage payments. If you do, your lender will seek to recover the missed payment and will want to find out why you were unable to make a payment. Overstretching your household budget can land you in hot water and risk you losing your home. No lender wants to repossess a property, but they may be left with no other choice if you fail to keep up with repayments. If your circumstances change through redundancy or illness, it’s always a good idea to keep your mortgage lender informed. At ChoiceMortgages UK we can advocate on behalf of our clients, and we also offer a number of insurance products which could help you mitigate the risk of repossession should the worst happen.
Not getting advice early enough
You’ve been scrolling through Rightmove late at night. You’ve found the perfect property and put in an offer. Then you approach a mortgage broker… In the time taken to process your application your offer is gazumped. Or, worse still, you discover you can’t actually afford the property anyway and have to withdraw your offer.
Getting advice early can help avoid problems later on. Getting an agreement in principle is an important step, ensuring you can make an offer with confidence. Speaking to a mortgage advisor early is the best way to get your ducks in a row. We’ll help you get your paperwork straight, help you determine what’s affordable and talk you through the next steps.
Making large purchases before completion
Once you’ve had an offer accepted, and your mortgage application has been approved it can be tempting to rush ahead and start buying lovely new things for your home. Stop! Until completion, the property is not yet yours. You don’t want to end up with furniture which you can’t make use of. Best to take things slow, wait until you’ve got the keys and then start buying beautiful things for your lovely new home.
Why Use an Independent Mortgage Advisor as a First-Time Buyer?
Access to the whole mortgage market
As independent advisors we have access to the whole market. We’re not tied to a single lender so we can find the best mortgage products, reflecting your specific circumstances. This often means we have access to better terms than you’d find at a high street bank, saving you money. We also understand each lender’s criteria and if you have complex circumstances, know which lender is likely to consider your requirements.
Help with complex income or credit history
If you’re self-employed, have multiple incomes from different jobs or have a complex credit history we can help. Our team has lots of experience helping clients with these kinds of issues. We can help you get your paperwork in order and present it in a way which makes sense to the lenders. If you’ve been refused a mortgage in the past, don’t despair, there’s normally a solution. We’re here to guide you, from start to finish.
Saving time and stress
Applying for mortgages is time consuming and can be stressful. We’ll help save you time and stress by doing the legwork for you. We’ll speak to you in plain English, work with you to get your paperwork together and communicate with your clearly throughout the process.
Explaining the mortgage application process
From LTVs to AIPs there can be a lot of jargon used in mortgage applications. We promise to use plain English and explain each step of the process as your application progresses. There are no silly questions, and our team is always here to explain anything you’re unclear about.
Support from application to completion – and beyond!
ChoiceMortgages UK has worked with clients in Stamford, across Lincolnshire and around the UK for decades. From initial conversation to completion and beyond we’re here to support our clients. Many of our first-time buyers come back time and again, working with us as they upsize, improving their home, moving across the country, and even helping their children invest in their first property. We pride ourselves on creating lasting partnerships with our clients.
More about First-Time Buyer Mortgages
Find out more about buying your first home by exploring our other helpful articles on this topic: