Mortgage Expert Exposes Overlooked Homebuying Headaches
A mortgage expert has issued crucial advice to aspiring homeowners on how to sidestep one of the most commonly overlooked financial pitfalls in the homebuying journey. Jen Lloyd, head of mortgages at Skipton Building Society, warns that the biggest shock for many first-time buyers often stems not from the deposit alone but from a cascade of expenses that emerge in the initial months of ownership.
"People meticulously budget for the purchase price but frequently get blindsided by the myriad costs associated with actually moving in," she explained. "Rent overlap, stamp duty, removals, council tax, furnishings, and various setup charges can all converge simultaneously. By transforming these 'unexpected' outlays into anticipated ones through upfront research and establishing a realistic 'move-in buffer,' the entire process can become significantly less stressful."
She emphasized that having a financial cushion at the outset can make a profound difference, especially for first-time buyers grappling with these early expenditures.
Survey Highlights Buyer Frustrations
These insights follow a comprehensive poll of 1,000 first-time buyers, which identified facing multiple upfront costs in rapid succession as the top aspect of the homebuying process they wished to avoid. Additional major grievances included the physical strain of moving, the protracted interval between exchange and completion, and the burden of overlapping rent and mortgage payments.
Jen Lloyd, whose firm commissioned the research to highlight enhancements to its Delayed Start Mortgage—allowing buyers to postpone their first repayment by up to three months—also cautioned against the temptation to tackle everything immediately, a common misstep among eager purchasers.
"From property surveys to furnishing a home from scratch, removals, and renovations, it's easy to feel pressured into making every decision instantly," she noted. "Rushing often results in unnecessary spending and avoidable stress. While buying your first home is exhilarating, slowing down where feasible and prioritizing urgent tasks over deferrable ones typically conserves money, time, and reduces anxiety."
The experience proved particularly challenging for many, with 64% of those renting at the time of purchase finding the process difficult. Specifically, 35% ended up paying rent and a mortgage concurrently, while 30% felt financially strained managing multiple housing-related payments. A third (32%) reported an overlap between rental and mortgage payments lasting one to two months, and 8% faced an overlap extending beyond three months. Furthermore, 24% had to give notice on their rental before securing a confirmed completion date, and 23% feared being left without accommodation temporarily.
Quirky Pain Points and Practical Tips
The survey also delved into some of the more peculiar frustrations buyers encounter. For instance, 35% admitted to constantly refreshing property apps "like it was a full-time job," while 32% confessed to spending excessive time browsing unaffordable properties early in their search. Additionally, 27% were perplexed about how to avoid offending sellers when making offers on properties listed as 'open to offers.'
Upon moving in, 35% found themselves awkwardly introducing themselves to new neighbors, and 34% suddenly developed a keen interest in mundane details like bins and thermostats.
Jen Lloyd added: "Purchasing your first home should be a thrilling milestone, yet our research indicates that early costs can easily overshadow that joy. A bit of breathing space at the beginning can genuinely help when numerous expenses arrive simultaneously. That's why we've enhanced our Delayed Start Mortgage to offer greater flexibility on repayment start dates—whether one, two, or three months post-completion—to alleviate immediate pressure. This can also be combined with our 100% Track Record Mortgage, which recognizes strong rental history and eliminates the need for a deposit. Everyone's path to homeownership is unique, and providing fairer options tailored to individual circumstances can make the transition far more manageable."
Top Recommendations for First-Time Buyers
To help buyers avoid costly errors, here are five essential tips:
- Do not underestimate the cost of the first few months: The primary financial shock often involves a cluster of expenses—such as rent overlap, legal fees, removals, furnishings, and setup costs—that hit all at once. Research these early and seek advice to build a realistic "move-in buffer" for a smoother transition.
- Avoid trying to do everything at once: Feeling overwhelmed by surveys, solicitors, and removals is common, but not everything requires immediate action. Prioritize urgent tasks and delay others where possible to save money, time, and reduce stress.
- Look beyond the mortgage repayment: Focusing solely on the monthly mortgage figure can create a false sense of affordability. Incorporate council tax, utilities, insurance, service charges, and ongoing maintenance to accurately gauge monthly costs before making an offer.
- Protect your credit score before applying: Refrain from taking on new credit in the months leading up to a mortgage application and clear outstanding debts where feasible. Even minor commitments, like phone upgrades, can impact affordability assessments.
- Get your paperwork ready early: Missing documents are a leading cause of delays. Organize payslips, bank statements, identification, and proof of deposit from the outset to expedite the process and gain a competitive edge.
