We’ve pulled together 10 of the most common home-buying mistakes to avoid:
1. Overlooking your credit report
Find out your credit score by getting a copy of your credit report BEFORE you apply for a mortgage.
Registering yourself on the electoral roll, for example, is a quick and easy way to boost your score and it will stand you in better stead when applying for a mortgage. There are more tips for improving your credit score here.
2. Mistaking the lender valuation for a survey
When a mortgage lender does a valuation, it’s only to check the property is adequate value for the loan. If you want to find out if anything is wrong with it, such as damp, you will have to pay for your own survey.
A Home Buyer’s report will suffice for most properties, but you can find out more about which survey is right for you here.
3. Taking mortgage advice from the estate agent
Don’t be surprised if the estate agent tries to offer you mortgage advice. But, bear in mind they are unlikely to compare every mortgage lender in the market – and they may even charge you.
Check out our mortgage comparison tables instead or call a free independent mortgage broker such as London and Country (0800 170 1943).
4. Buying a flat with a short lease
Flats with short leases (that usually means 80 years or less remaining) can be a problem when it comes to getting a mortgage – and again when you come to sell.
Find out if the lease can be extended before you buy. If the seller won’t or can’t do this, make sure the shorter lease is reflected in the price you pay.
Variable rates might look cheaper than fixed deals, but would you be able to afford higher payments when interest rates rise?