FIRST-TIME buyers have revealed their biggest regrets, including settling for an area they don’t love and not using a mortgage broker.
A poll of 500 adults who bought their first property in the last two years found 82% admit there are certain things they wish they had done differently.
A third wish they had started saving for a deposit sooner, while 31% have warned future buyers to stow more cash away for unforeseen expenses.
Looking back, 18% would do more research into mortgage options available and nine per cent would reconsider buying a leasehold property.
Felicity Holloway, head of mortgages at Moneybox, which commissioned the research, said: “First-time buyers often find themselves navigating a maze of tasks when buying their first home, and unsurprisingly often encounter challenges from underestimating hidden costs to struggling to find the best mortgage for their needs.
“But you don’t need to go it alone. These missteps, while common, highlight the crucial need for expert guidance throughout the home-buying journey.”
She added: “It can be overwhelming to figure out the answers to your questions or even where to turn to for support.
“But by tapping into the right resources, buyers can avoid making common mistakes and make more informed decisions throughout their homebuying journey – setting them up for long-term success.”
The research also found that one of the biggest challenges new homeowners faced in the last two years while buying their property was preparing their finances for a successful mortgage application.
Meanwhile 41% admitted, it was difficult to understand what mortgage options were most suitable for their needs.
A further 23% also struggled to figure out the best time to buy during a period of housing market volatility.
Reflecting on their buying experience in the last two years, 36% feel that today’s aspiring first-time home hunters would benefit from more guidance about suitable mortgages for their circumstances.
With 28% believing aspiring buyers should seek support on selecting the right broker to support their journey.
Whereas 27% believe it is imperative they get help along the way picking a mortgage lender.
Many of these recent first-time buyers have also called on the new government to support those now going through the process.
One in four would like to see financial incentives for sellers to sell to first time buyers, and 22% think it would be worthwhile to relax mortgage affordability assessments.
Some 22% would like to see a policy to introduce no-deposit mortgages considered.
IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time.
There are several ways to land the best deal.
Usually the larger the deposit you have the lower the rate you can get.
If you’re remortgaging and your loan-to-value ratio (LTV) has changed, you’ll get access to better rates than before.
Your LTV will go down if your outstanding mortgage is lower and/or your home’s value is higher.
A change to your credit score or a better salary could also help you access better rates.
And if you’re nearing the end of a fixed deal soon it’s worth looking for new deals now.
You can lock in current deals sometimes up to six months before your current deal ends.
Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.
But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal – but compare the costs first.
To find the best deal use a mortgage comparison tool to see what’s available.
You can also go to a mortgage broker who can compare a much larger range of deals for you.
Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.
You’ll also need to factor in fees for the mortgage, though some have no fees at all.
You can add the fee – sometimes more than £1,000 – to the cost of the mortgage, but be aware that means you’ll pay interest on it and so will cost more in the long term.
You can use a mortgage calculator to see how much you could borrow.
Remember you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month’s payslips, passports and bank statements.
Felicity Holloway, from Moneybox, added: “Given the economic and market challenges over the last 2 years, it’s no surprise that a common theme from the research is many first-time buyers struggled with understanding and finding the best mortgage for their needs.
“Spending plenty of time preparing your finances and engaging a trusted mortgage broker as early as possible in the process will give you the best chance of securing the right mortgage for your needs.
“And remember, unless you have very specialist needs such as being self-employed, you should never have to pay for an expert mortgage broker but might want to double check you choose one that is ‘whole of market’ to ensure they have access to the very best offers out there to find the best mortgage deal for you.
“Our free mortgage service is here to help make the process of buying a home stress-free, with a dedicated team of expert mortgage brokers and individual case managers on hand to support you throughout.”
