Buying your first home is exciting, but buying a house for the first time in the UK can also feel complicated. From understanding how much you can borrow to checking your credit history, deposit, EPC rating and the property's condition, there are several important steps to take before making an offer.
The good news is that many first-time buyer mistakes can be avoided with the right preparation.
Whether you are saving for your first deposit, looking for a mortgage, or already viewing properties, this guide explains 15 things first-time buyers should check before buying a home in the UK.
1. Know How Much You Can Afford Before You Start House Hunting
One of the biggest mistakes first-time buyers make is choosing a property before understanding their realistic budget.
Before you start searching for your first home, consider:
- Your deposit
- Your income
- Your existing financial commitments
- Your potential mortgage borrowing
- Your expected monthly mortgage payment
- Your other homeownership costs
Your mortgage affordability is not simply about how much you earn. Lenders may consider your income, expenditure, existing credit commitments and other aspects of your financial circumstances.
Getting an initial understanding of your borrowing position can help you search within a realistic price range.
A useful first step
Speak to a UK mortgage adviser for first-time buyers before you begin serious property hunting.
2. Understand the Total Cost of Buying Your First Home
The purchase price is only one part of the cost of buying a house.
First-time buyers should also budget for potential costs such as:
- Mortgage arrangement or product fees
- Valuation fees
- Home survey costs
- Solicitor and conveyancing fees
- Property searches
- Stamp Duty, where applicable
- Moving costs
- Buildings and contents insurance
- Repairs and maintenance
- Furniture and appliances
Understanding the total cost of buying a house in the UK can prevent you from using every penny of your savings on the deposit and purchase itself.
3. Check Your Credit Score and Credit Report Before Applying for a Mortgage
Your credit history can be an important part of a mortgage application.
Before applying for a first-time buyer mortgage, check your credit reports for:
- Missed or late payments
- Incorrect personal information
- Unrecognised credit accounts
- Outstanding debts
- Incorrect financial associations
- Old information that may need updating
Checking your credit report early gives you time to identify potential issues.
Remember that there is no single universal credit score needed for a mortgage in the UK. Lenders use their own criteria when assessing applications.
4. Make Sure You Are Registered on the Electoral Roll
Being registered on the electoral roll at your current address can help lenders verify your identity and address history.
Before applying for a mortgage, make sure your electoral-roll information and other personal details are accurate and up to date.
This is a relatively simple step that can help avoid unnecessary complications during the application process.
5. Reduce Existing Debt and Avoid Taking on Major New Borrowing
Your existing financial commitments can affect your mortgage affordability.
If you are preparing to buy your first home, avoid taking on significant new debt shortly before applying for a mortgage where possible.
For example, think carefully before:
- Taking out a large personal loan
- Financing an expensive car
- Increasing credit card balances
- Taking on substantial new monthly commitments
Reducing existing debts may also improve your overall financial position.
If you are planning to apply for a mortgage soon, speak to your adviser before making significant changes to your finances.
6. Keep Credit Card Balances Under Control
Using a large proportion of your available credit can affect how your financial position is viewed.
As a general financial-health measure, keeping your credit utilisation relatively low can be sensible.
For example, if your credit card limit is £4,000, a balance of £1,000 represents 25% utilisation.
However, there is no magic 25% rule that guarantees mortgage approval. Mortgage lenders use their own affordability and credit assessment criteria.
The key principle is to avoid unnecessarily high levels of revolving debt when preparing for a mortgage application.
7. Pay Your Bills on Time
Late and missed payments can potentially affect your credit history and may raise questions during a mortgage assessment.
Make sure regular financial commitments are paid on time.
Setting up Direct Debits or automatic payments for recurring bills can help reduce the risk of accidentally missing a payment.
This is particularly important when preparing for a first-time buyer mortgage application.
8. Keep Your Address History Accurate
Lenders may review your address history as part of their identity and credit checks.
Moving home is not automatically a problem, but make sure your current and previous addresses are recorded accurately across your financial accounts and credit reports.
If you have recently moved, check that your address details are consistent before submitting a mortgage application. Also, don not change addresses too often, that may signal instability to the lenders.
9. Don't Choose a Mortgage Based Only on the Interest Rate
A common first-time buyer mortgage mistake is focusing entirely on the lowest advertised interest rate.
The cheapest mortgage overall is not necessarily the one with the lowest headline rate.
When comparing mortgage deals, look at:
- Interest rate
- Product or arrangement fee
- Cashback
- Early repayment charges
- Overpayment options
- Mortgage term
- Overall cost of the deal
For example, a mortgage with a lower interest rate but a high arrangement fee may not necessarily be the most cost-effective option for your circumstances.
Ask your mortgage adviser to compare the overall cost of the mortgage, not just the initial rate.
10. Don't Assume Your Bank Is Your Only Mortgage Option
Many first-time buyers automatically approach the bank where they hold their current account.
However, different mortgage lenders have different:
- Affordability criteria
- Income requirements
- Deposit requirements
- Property criteria
- Credit policies
- Mortgage products
Exploring the wider mortgage market may give you more options.
A whole-of-market mortgage adviser can assess your circumstances and help identify mortgage products and lenders that may be suitable.
11. Check Whether Your Deposit Is Acceptable to the Lender
Saving the deposit is one of the biggest challenges for many first-time buyers.
But it is also important to understand where your deposit comes from.
Your deposit could potentially come from:
- Personal savings
- A Lifetime ISA
- A gifted deposit
- Sale proceeds
- Other permitted sources
Lenders may have specific rules regarding the source of your deposit and may require supporting documentation.
If you are receiving a gifted deposit for a first-time buyer mortgage, discuss this with your mortgage adviser early in the process.
12. Leave Room in Your Budget for Life After Moving In
Getting the keys to your first home is only the beginning.
Once you move in, you may need to budget for:
- Mortgage repayments
- Council Tax
- Energy bills
- Water
- Broadband
- Insurance
- Repairs
- Maintenance
- Furniture
- Appliances
- Unexpected expenses
Don't use every available pound for your deposit and purchase costs.
Leave room in your budget for life after moving in.
Having an emergency fund or financial buffer can make the transition into homeownership much more manageable.
13. Check the Property's EPC Rating and Energy Efficiency
Before buying a property, check its Energy Performance Certificate (EPC).
The EPC gives you information about the property's energy efficiency and can help you understand potential energy costs and recommended improvements.
Energy efficiency is becoming an increasingly important consideration for homeowners. A more energy-efficient home can potentially mean lower energy bills, while some lenders offer green mortgage products or incentives for properties meeting certain energy-efficiency criteria.
If the property has a lower EPC rating, consider what improvements might be required in the future.
These could include:
- Loft or wall insulation
- Improved windows
- More efficient heating
- Renewable-energy technologies
- Other energy-efficiency improvements
There may also be current schemes, incentives or finance options that could help homeowners make their properties more energy efficient, depending on eligibility and availability.
Smart step: Ask your mortgage adviser whether the property's EPC rating could affect the mortgage products or incentives available to you and whether there are current options for financing energy-efficiency improvements. Contact Pinnacle Financial Solutions to understand how your property's energy efficiency could fit into your wider mortgage planning.
14. Get Mortgage Advice Before Making an Offer
One of the most important steps for a first-time buyer is understanding your mortgage position before making an offer on a property.
A mortgage adviser can help you understand:
- How much you may be able to borrow
- Your potential monthly repayments
- Deposit requirements
- Mortgage products available
- Lender criteria
- Affordability considerations
- Potential fees and charges
You may also hear terms such as Mortgage in Principle, Agreement in Principle (AIP), Decision in Principle (DIP) or Mortgage in Principle.
Understanding your position before making an offer can help you approach the property purchase with greater financial clarity.
15. Consider a Level 2 Home Survey — But Get the Timing Right
A property viewing can help you understand whether you like a home, but it cannot necessarily reveal every defect or potential problem.
A Level 2 Home Survey can provide a more detailed assessment of the property's condition and identify issues that may not be obvious during a viewing.
This can be particularly useful for first-time buyers who may not have experience identifying potential property problems.
But don't rush into paying for the survey
The timing of the survey matters.
Before commissioning a Level 2 Survey, discuss the timing with your mortgage adviser and solicitor/conveyancer.
For example, if the lender's valuation subsequently indicates that the property is worth less than the agreed purchase price, or the lender is unable to provide the mortgage amount required, you could potentially incur the survey cost without being able to proceed with the purchase.
This does not mean that you should avoid getting a survey.
Instead, coordinate the survey with your mortgage and conveyancing process so you understand the potential risks and costs before proceeding.
Smart step: Ask your mortgage adviser and solicitor when the appropriate point is to commission the survey for your purchase. --- First-Time Buyer Checklist: What Should You Do Before Buying?
Established your realistic property budget
Calculated the total cost of buying the property
Checked your credit report
Registered on the electoral roll
Reviewed existing debts and financial commitments
Kept credit-card balances under control
Maintained a good payment history
Checked your address history
Compared mortgage products beyond the headline interest rate
Considered lenders beyond your current bank
Confirmed that your deposit source is acceptable
Kept money aside for post-purchase expenses
Checked the property's EPC rating
Obtained appropriate mortgage advice
Discussed the timing of a Level 2 Home Survey
Frequently Asked Questions About Buying Your First Home
What are the biggest mistakes first-time buyers make?
Common mistakes include failing to understand affordability, underestimating the total cost of buying a home, ignoring credit issues, choosing a mortgage based only on the interest rate, using all available savings for the purchase and failing to check the property's condition and EPC rating.
How much deposit do I need to buy my first home in the UK?
The deposit required depends on the mortgage product, lender criteria and your individual circumstances. Some mortgages are available with relatively low deposits, while a larger deposit can potentially provide access to different mortgage options.
Should I check my credit score before applying for a mortgage?
Yes. Checking your credit reports before applying can help you identify incorrect information, outstanding issues or other potential problems that may need addressing.
Should I speak to a mortgage adviser before viewing properties?
It can be useful to understand your potential borrowing and affordability before seriously searching for a property. This can help you establish a realistic price range and avoid looking at properties outside your financial circumstances.
What is an Agreement in Principle?
An Agreement in Principle, also known as a Decision in Principle or Mortgage in Principle, is an indication from a lender of how much they may be prepared to lend based on information available at that stage. It is not the same as a formal mortgage offer and does not guarantee that your mortgage application will be approved.
Should first-time buyers get a home survey?
A survey can help identify potential problems with a property that may not be obvious during a viewing. A Level 2 Home Survey may be appropriate for many conventional properties, although the appropriate survey depends on the property and circumstances.
Should I get a Level 2 Survey before or after my mortgage offer?
The timing should be discussed with your mortgage adviser and solicitor/conveyancer. You should understand the lender's valuation and mortgage position before committing to survey costs, because if the lender cannot provide the required mortgage funding, you could potentially lose the money spent on the survey.
Why is an EPC rating important when buying a house?
An EPC provides information about a property's energy efficiency and potential improvements. A more energy-efficient property may have lower running costs, and some lenders offer green mortgage products or incentives linked to energy efficiency.
Can an EPC rating affect my mortgage?
Some lenders offer specific mortgage products or incentives for energy-efficient properties. Availability and eligibility vary between lenders, so it is worth asking your mortgage adviser what options are currently available.
Ready to Take the Next Step Towards Your First Home?
Buying your first home is a major financial decision. The more you understand before making an offer, the better prepared you can be for the mortgage and home-buying process.
From first-time buyer mortgages and affordability to credit history, deposits, EPC ratings and property surveys, professional advice can help you understand the options available for your circumstances.
Thinking about buying your first home?
Contact Pinnacle Financial Solutions today to discuss your mortgage options and understand your next steps.
Disclaimer: This article is provided for general information and educational purposes only and does not constitute legal, financial, tax, estate-planning or other professional advice. It should not be relied upon as a substitute for advice based on your individual circumstances. The information in this article relating to Wills, LPAs and intestacy is primarily intended for readers in England and Wales. Your home may be repossessed if you do not keep up repayments on your mortgage.