Avoid Costly Mistakes and Set Yourself on the Path to Long-Term Financial Stability

Buying your first home is an exciting milestone, but without careful planning, it can quickly become overwhelming and expensive. That's the last thing we all want, right?

To help you navigate the process with confidence, here’s what every first-time buyer needs to know to avoid costly mistakes and secure long-term financial stability.

1. Know Your Financial Health Before House Hunting

The first step in buying a home is understanding your finances. Before you start browsing properties, check your credit report with providers such as Experian or Equifax. Ensure any errors are corrected, as an accurate credit record is crucial for securing a mortgage.

Additionally, assess your affordability by factoring in all costs beyond the mortgage deposit, including:

• Home insurance
• Mortgage fees
• Stamp duty (if applicable)
• Legal and survey costs
• Moving expenses

2. Save for a Larger Deposit

While some lenders accept a 5% deposit, a larger down payment (10%-20%) can secure better mortgage rates and reduce your monthly repayments. That's a bit challenging though, so why not consider using government-backed schemes such as:

• Lifetime ISA (LISA): Get a 25% government bonus on savings up to £4,000 per year.
• First Homes Scheme: Discounts on new-build properties for eligible buyers

3. Get a Mortgage in Principle

Obtaining a mortgage in principle before house hunting shows sellers you’re serious and helps you understand how much you can borrow. Feel free to call us and we'll help you with this!

4. Research the Best Mortgage Deals

Not all mortgages are created equal. Work with an experienced mortgage broker (like Windsor Hill Mortgages) to compare options and find a deal that suits your needs. Common types include:

• Fixed-rate mortgages – Set interest rate for a fixed period.
• Tracker mortgages – Interest rate fluctuates with the Bank of England base rate.
• Offset mortgages – Use savings to reduce mortgage interest.

Feel free to call us and we'll help you with this!

5. Factor in Additional Homeownership Costs

Owning a home comes with ongoing costs beyond the mortgage, such as:

• Council tax
• Utility bills
• Property maintenance
• Unexpected repairs (e.g., boiler replacements)

6. Consider Future Financial Stability

Think beyond the initial purchase – will you be able to afford mortgage payments if interest rates rise or your circumstances change? Having 3-6 months of savings as an emergency fund is a smart financial cushion

7. Seek Professional Guidance

At Windsor Hill Mortgages, we understand that buying a home can feel like navigating a maze. Our experienced advisers in Bath can guide you through every step, from securing your mortgage to finding the right protection for your home.

Speak to our team today and we'll take you through your mortgage options.