Common mistakes made when buying a house

Buying a house is an exciting, yet nerve-wracking milestone.

Whether you’re a homeowner looking to downsize, someone climbing the property ladder, or a first-time buyer starting their homebuying adventure, the process can feel like playing a new game without the instructions. Let’s be honest, it’s not quite as simple as Monopoly makes home ownership out to be – although a house on Park Lane would be great! The reality is filled with more paperwork, more decisions, and certainly more potential pitfalls. So that’s why we’ve put together this handy list of common mistakes we see, to give you one up in the homebuying game!

Not getting a mortgage agreement in principle

Before you start looking at dream houses, it is best practice to get a mortgage agreement in principle. This will help you understand how much money you could borrow before you apply for your mortgage. This will help guide what properties you view and will also help avoid the disappointment of putting in an offer on your dream house, only to be disappointed when you apply for a mortgage and aren’t approved. It will also show estate agents and home sellers that you are serious about buying.

A mortgage in principle is usually valid for between 1 and 3 months. In some cases, it is possible to renew the terms of the agreement after the 90 days, otherwise, you may have to arrange new terms. It is obligation-free and only involves a soft credit check, so your credit score won't be impacted

Not being registered on the electoral roll

The simplest way for a lender to verify your identity is to check the electoral roll. So, make sure you’re registered! It is a legal requirement, so it is likely that you are already registered, but make sure to double-check before you apply for your mortgage in principal/mortgage. When you register your details are recorded on your credit report. This helps lenders confirm your name and address but also increases your credit score. If you are a first-time buyer who is living in rented accommodation and has moved around a lot, you may be registered at an old address, so make sure your information is up to date before you apply. If you’re not registered, you can register to vote by post or online.

Only considering one mortgage deal  

In the pursuit of your dream house, you’ve viewed so many houses to find the right one, the right kitchen, the right location. You’ve shopped around. So, shop around for the best mortgage deal for your circumstances.  

There are a range of mortgages available, with different lengths, interest rates and terms. You can always talk to a financial advisor if you have any questions.

Forgetting to factor in all the buying costs (moving fees, stamp duty)

A house is a big expense but there are so many additional costs to factor in when buying a house. For example, moving costs, solicitor costs, stamp duty and any renovations needed. Make sure you have enough money saved to pay for all of this, on top of the cost of the house. Average moving costs in the UK are £550 and average solicitor and search fees are usually between £2000 and £3000. If your property value is between £250,001 and £925,000 you’ll also need an additional 5% of the overall value of the house to cover stamp duty.

Thinking the process takes 6-8 weeks.  

If you haven’t sold and bought a house in a while, chances are things take longer these days than they used to. If you’re lucky and have things like a mortgage agreement in principle in place, it could still take as little as 6 weeks to buy a house once the offer has been accepted. But chances are it will take a lot longer. According to Zoopla, a good rule of thumb is to expect a 12 week process but it can take up to 6 months. Whilst you will be desperate to get into your new home, it is important not to rush the process and ensure all necessary surveys and searches are carried out. This will help avoid any nasty surprises after completion and ensure your house is worth what you are paying for it.  

Not researching the different types of searches available.  

There are a plethora of searches available on the market and not all searches are of the same standard. Your solicitor will advise you on what searches are necessary, but we would always recommend doing your own research to ensure you are happy with the level of detail the searches go into. You can find a handy guide here about the essential searches needed. Remember, cheaper searches may well have a lesser quality of data included.

Not reading the searches when they are returned

It is important to read through the searches for yourself and ask your solicitor any questions about the results. They contain a lot of information, some of which might use language you’re not used to, so doing some research might be needed. Your solicitor will also be able to explain anything you don’t understand. There are also searches available, such as the Geodesys CON29DW, that have a useful front page that summarises all the information, highlighting the important parts of the search that should be factored in when making a final decision about a property. That’s why researching the types of searches available for yourself is really important.

Being prepared for the transaction to fall through.

Once you’ve put an offer in on your dream house and instructed a solicitor, it is easy to get excited and start planning where the sofa is going and the colour you’ll paint the kitchen. It is an exciting time after all. But with 31.3% of transactions falling through in 2024 in the  UK, it’s good to be prepared. With hundreds of houses listed every day, even if the worst does happen and your house falls through, there are plenty more fish in the sea!

From securing a mortgage agreement in principle to researching different searches and understanding all associated costs, each step presents its own challenges. By avoiding common mistakes like neglecting additional fees, rushing the process, or failing to explore multiple mortgage options, you can make your home-buying journey smoother and more successful. The key is to stay informed, be patient, and prepare for potential setbacks, ensuring that when you finally find the right home, it’s a sound investment both financially and emotionally.