Buying your first home is an exciting milestone, but with mortgage rates still elevated, stricter stamp duty rules than a few years ago, and a market that’s shifting again as regulators loosen affordability rules, it’s easy to make a costly mistake if you don’t know where to start. Here at Pure Mortgage, we’ve helped first-time buyers navigate the market for over 30 years, and we’ve pulled together the most common mistakes to avoid – updated for where things stand right now.
1. Not knowing how much you can afford
The first step is always working out what you can realistically afford – not what a lender says you’re eligible for on paper. With average two-year fixed rates currently sitting around 5.3% (and closer to 4.8% if you qualify for a major lender’s best deals), your monthly payment can look very different from what it would have been a few years ago. If you skip this step, you risk wasting time viewing homes you can’t comfortably afford, or falling in love with a property that’s out of reach. We’ll never encourage you to view a home outside your comfortable budget, because it usually ends in disappointment. Get in touch and we’ll talk through exactly what price range makes sense for you.
2. Starting with a very small deposit
The government’s Mortgage Guarantee Scheme, which supports 95% mortgages (a 5% deposit), was made permanent in July 2025, so low-deposit lending is here to stay. Several lenders have also gone further with dedicated low-deposit products aimed squarely at first-time buyers: Halifax and Accord Mortgages both offer a £5,000 deposit mortgage – Halifax’s version lends up to 95%+ LTV on properties between £102,000 and £300,000 using your own savings (gifted deposits aren’t accepted), while Accord’s goes up to 99% LTV on purchase prices up to £500,000. Leeds Building Society’s Start Mortgage works similarly, asking for whichever is greater of a 2% deposit or £5,000. These can be a genuine way onto the ladder if saving a full deposit feels out of reach, but they come with trade-offs worth knowing about upfront: rates are typically higher than at lower LTVs, most are fixed for five years only, income requirements and loan-to-income limits apply, and property type or price restrictions vary by lender.
That’s why it’s still better to save as much deposit as you comfortably can – if you’re able to, aim for at least 10–15%, which will noticeably reduce your interest costs over the life of the loan. For context, the average first-time buyer deposit in England is now around £64,000, though this varies hugely by region – from roughly £31,000 in the North of England to well over £130,000 in London. Whether you’re weighing up a low-deposit product or building towards a bigger one, we can help you work out the right approach for your circumstances and compare the options properly, rather than going straight to one lender’s headline product.
3. Not comparing lenders
Don’t settle for the first bank you speak to. Mortgage rates and criteria vary significantly between lenders, and going direct to one bank means you only see their products. As an independent, whole-of-market broker, we compare deals across the entire market for you – including options you wouldn’t find on the high street – and explain the long-term implications of each, so there are no surprises later.
4. Spending all your savings
Putting every penny towards your deposit is a common mistake – you’ll likely need some of those savings for moving costs, furniture, and unexpected repairs, on top of an emergency fund. Aim to keep the equivalent of three to six months’ living expenses in reserve. This matters even more with today’s higher cost of borrowing: think through what would happen to your finances if you lost your job or your income dropped shortly after moving in, and make sure you’d still be able to cover your mortgage payments.
5. Getting the wrong type of mortgage
It’s essential to speak to an independent mortgage adviser who can walk you through the full range of products available – fixed, tracker, offset, and everything in between. Many buyers default to a 35-year term without realising how much extra interest that adds up to over time. Shortening the term where you can afford to will save you a significant amount of money in the long run. The FCA is also currently consulting on wider changes to affordability rules — including more flexibility for self-employed buyers and those with minor historic credit issues – which could open up new options over the coming months, so it pays to get advice that’s current.
6. Not making additional payments
If you do go with a longer mortgage term, most lenders let you make overpayments – often up to 10% of the balance a year without penalty. Making extra payments when you’re in a good financial position can shave years off your mortgage and save you a substantial amount in interest. Ask us about your specific lender’s overpayment allowance before you commit.
7. Not paying attention to your credit score
Lenders will scrutinise your financial profile closely before approving a mortgage. Avoid taking out new loans, or opening or closing credit accounts, in the months before you apply, as this can affect your score and your approval odds. Always pay bills on time and in full. Under proposed FCA reforms, lenders may soon be encouraged to assess affordability based on your current circumstances rather than automatically declining applicants over minor or historical credit blips – but until those changes land, a clean credit file is still your best asset.
8. Not understanding all the costs involved in buying a home
Your monthly mortgage payment and interest are only part of the picture. Budget for stamp duty, buildings and contents insurance, life cover, solicitor’s fees, survey costs, and moving expenses. As of April 2025, first-time buyer stamp duty relief in England and Northern Ireland was reduced: you now pay 0% up to £300,000 and 5% on the portion between £300,000 and £500,000, with no relief at all above £500,000. That’s a meaningful change from the previous, more generous threshold, and it catches a lot of buyers out – particularly in and around London. Factor it into your budget from day one. Repairs and maintenance can also add up quickly, especially if you’re buying an older property, as many first-time buyers do.
9. Paying more than you can afford for the house of your dreams
Don’t stretch beyond your budget even if you think you’ve found “the one.” With interest rates still elevated compared to the pre-2022 era, overstretching now carries more risk than it used to – particularly when your fixed rate ends and you have to remortgage at whatever rates look like then. It’s almost always more sensible to stick to your budget and improve the property over time than to buy beyond your means.
10. Choosing the house over the neighbourhood
Even the perfect house can be the wrong choice if the area doesn’t work for you. Consider parking, safety, public transport links, schools, and how close you are to the amenities you rely on day to day. You’re buying a location as much as you’re buying a property.
Ready to start your first-time buyer journey?
The market has shifted a lot recently – rates, stamp duty, and lending rules have all changed in the last couple of years, and more changes may be coming. Speaking to an independent mortgage broker means you get advice based on where the market actually stands today, not where it was when you last checked. Get in touch with Pure Mortgage and we’ll help you take the first step with confidence.
This article reflects the UK mortgage and property market as of September 2026, including Bank of England base rate, average mortgage rates, stamp duty thresholds, and government scheme information. Rates and rules change frequently — please contact us for advice tailored to your circumstances.
