6 May 2025

5 Mistakes First-Time Buyers Make and How to Avoid Them

Dominic Leigh-Southey

Date: 06/05/2025

Buying your first home is one of the biggest financial decisions you'll ever make. It’s exciting, but also filled with challenges—especially if you're navigating the process for the first time in areas like Wiltshire or Somerset. As a mortgage adviser helping first-time buyers every day, I’ve seen where people often go wrong—and how easily those mistakes can be avoided.

In this post, I’ll walk you through five common pitfalls, offer practical solutions, and show you how to get on the property ladder confidently.

1. Underestimating the True Cost of Buying a Home

🚫 Mistake:

Many first-time buyers budget only for the deposit and mortgage repayments—but forget about additional costs like solicitors' fees, surveys, stamp duty (where applicable), removals, and furnishings. This can lead to financial strain or delays right before completion.

✅ How to Avoid It:

Build a full picture of costs before you start house hunting. Here's a basic breakdown you might encounter in Wiltshire or Somerset:

1. Solicitor/Conveyancing Fees: £800–£1,500
2. Home Survey: £300–£600 (depending on whether you go for a Level 2 or Level 3)
3. Stamp Duty Land Tax: £0 (if under £425,000 for first-time buyers), but check your eligibility - use our free SDLT calculator to get an idea of the cost
4. Moving Costs: £200–£600
5. Lender Arrangement/Product Fees: Sometimes included in the mortgage, but not always

📝 Tip: Speak to a mortgage adviser early to create a realistic budget that covers all expenses—not just the deposit.

2. Not Saving a Big Enough Deposit

🚫 Mistake:

Aiming for the bare minimum deposit (5% of the property price) may seem doable, but it can limit your mortgage options—and may result in higher interest rates or even rejections.

✅ How to Avoid It:

If you can, save for a larger deposit—ideally 10–15%. This can:

1. Improve your loan-to-value (LTV) ratio
2. Get you access to better mortgage deals
3. Lower your monthly repayments

📍 In areas like Wiltshire and Somerset, property prices vary greatly, so it’s worth researching average prices in your desired towns (e.g., Salisbury, Trowbridge, Frome) and setting a deposit goal accordingly.

💡 Tip: Consider Lifetime ISAs or gifted deposits from family to boost your savings with tax-free bonuses.

3. Skipping a Mortgage Agreement in Principle (AIP)

🚫 Mistake:

House-hunting without a mortgage agreement in principle (AIP) can backfire. Sellers and estate agents may not take your offer seriously—or worse, you may fall in love with a home you can't actually afford.

✅ How to Avoid It:

Get an AIP before viewing properties. It’s a quick, non-committal step that shows you're serious and gives you a realistic idea of your borrowing power.

At First Mortgage Steps, we help you secure an AIP quickly and at no cost, so you're house-hunting with confidence.

4. Not Using a Mortgage Adviser

🚫 Mistake:

Going directly to your bank might seem easier, but you’ll miss out on potentially better deals available across the market. Banks only offer their own products—which may not be ideal for your situation.

✅ How to Avoid It:

Work with a fee free mortgage broker (like us!). We:

1. Search hundreds of lenders
2. Tailor mortgage options to your financial profile
3. Handle the paperwork
4. Liaise with solicitors and estate agents on your behalf

🤝 Bonus: We can often help speed up the process and catch small issues before they become costly delays.

5. Not Thinking Ahead About Affordability

🚫 Mistake:

Stretching your budget to the absolute maximum can leave you vulnerable to changes in interest rates or personal circumstances. This is especially important now, with rates fluctuating.

✅ How to Avoid It:

Plan for the future, not just the now. Ask yourself:

1. Could I still afford this mortgage if rates go up 1–2%?
2. Will I want to move, remortgage, or start a family in a few years?

A good adviser will help you think beyond the immediate numbers and factor in future goals, job stability, and long-term affordability.

👣 Ready to Take Your First Step?

Avoiding these mistakes could save you thousands—and a lot of stress. At First Mortgage Steps, we specialise in guiding first-time buyers in Wiltshire and Somerset every step of the way.

Whether you’re just starting out or already have a deposit saved, let’s make your first home purchase smooth, affordable, and tailored to your needs.

👉 Click here to get expert advice or book a free consultation

We’ll help you:

1. Understand exactly what you can afford
2. Compare the best mortgage deals
3. Navigate the paperwork and legal process
4. Avoid common (and costly) first-time buyer pitfall

Buying your first home doesn’t need to be overwhelming. With the right advice and preparation, you can make smart, confident decisions—and get the keys to your new home sooner than you think.