Buying a home can be a brilliant yet daunting journey. The market has been tricky to navigate in recent years, with fluctuating interest rates and house prices being headaches for many trying to get on the property ladder.
According to the Office for National Statistics, average values in the UK increased by 2.7% in the 12 months leading up to June 2024 (provisional estimate), putting more pressure on you to make savvy decisions during the process.
To avoid mistakes, it’s crucial to be aware of the common pitfalls and learn how to steer clear of them.
1. Failing to acquire a mortgage in principle
A mortgage in principle comes from a lender and states how much they’re willing to loan you based on your financial situation.
Having this document gives you an idea of the price range you can afford while showing sellers that you’re serious and prepared. This could make you a more attractive buyer in competitive markets.
Get yours before you book viewings to ensure you don’t waste your own or anyone else’s time.
2. Focusing on just the property
It’s easy to be caught up in the excitement of finding the perfect building, but you shouldn’t forget other important factors. This might include the neighbourhood, amenities, development plans and anything else that impacts your day-to-day living and future house value.
Don’t forget to use the police.uk website to assess the crime rates in the prospective area and check out local transport links to see how you’ll get around.
3. Not setting a realistic budget
You may underestimate the full costs involved in purchasing a home, which can include not only the deposit but also legal fees, repair work and stamp duty – if yours is over the threshold.
It can be worth going with a first-time buyer mortgage broker who can consider your situation and secure the best deal. They should also ensure your monthly repayments are affordable, leaving you room to manage other living expenses.
4. Not thinking about your future needs
Finally, don’t focus solely on your immediate requirements; be sure to think about how your circumstances might change in the next few years. While a small flat may seem ideal now, will it suit you if you decide to start a family or work remotely?
Consider your long-term goals and find somewhere that can accommodate lifestyle changes. Planning ahead can save you the hassle of moving again sooner than expected.
Love,
*This is a collaborative post