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How to Avoid Common Mortgage Mistakes

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How to Avoid Common Mortgage Mistakes 

Getting a mortgage is one of the biggest financial decisions you will ever make. It can help you buy your dream home, but it can also be a source of stress and frustration if you make some common mistakes. 

Mortgage mistakes can cost you money, time, and even your chance of getting approved. They can also affect your credit score, your future borrowing options, and your overall financial well-being. 

But don’t worry – you can avoid these pitfalls by doing some research, planning ahead, and being smart about your choices. Here are some of the most common mortgage mistakes and how to avoid them. 

Applying for mortgages you won’t get 

One of the first steps in getting a mortgage as a first-time buyer is finding out how much you can borrow and what kind of mortgages are available to you. However, not all mortgages are suitable for everyone. Some mortgages have specific requirements, such as:

    • A large deposit
    • A clean credit record
    • A minimum income
    • A maximum age

    If you apply for a mortgage that you don’t qualify for, you will likely get rejected. This can delay your purchase, waste your money on fees, and damage your credit score. 

    To avoid this mistake, you should do some research before you apply to get an idea of how much you can borrow and what kind of mortgages are available to you. 

    Get an agreement in principle. which is a statement from a lender that shows what they could be willing to lend you based on some basic information.

    However, remember that these are only estimates and not guarantees. You still need to complete a full mortgage application and provide evidence of your income, expenses, and credit history to get a formal mortgage offer. 

    Mortgage Loan Application’ form marked with a large red ‘X

    Providing false information on your application form 

    Another common mistake is lying or exaggerating on your application form. You may think that this will improve your chances of getting approved, but it will only backfire on you.

    Lenders check the information on your application form and ask for proof of some of it. They will verify your income, employment, debts, savings, and other details. If they find out that you lied or omitted something important, they will decline your application and report you for fraud. 

    This can have serious consequences for you, such as:

      • Losing your deposit or reservation fee
      • Losing the property, you wanted to buy
      • Facing legal action or prosecution
      • Ruining your credit score and reputation
      • Having difficulty getting any credit in the future.

      Ensure that all information on your application form is truthful and precise. Avoid misrepresenting any details, no matter how minor they may appear. Be transparent about all debts or obligations. Do not exaggerate your earnings or savings. Be forthright about your employment status, and accurately state your intentions for the property’s use, whether personal or as a rental.

      re unsure about anything, get advice from a mortgage broker who can guide you through the process and help you fill in the form correctly. 

      Not shopping around for the best deal 

      Another common mistake is settling for the first mortgage offer that you get without comparing it with other options. You may think that this will save you time and hassle, but it may cost you more money in the long run.

      All lenderss have different lending criteria and mortgages come in different types, rates, terms, and fees. Some mortgages may be cheaper or more flexible than others. Some mortgages may have hidden charges or penalties that you should be aware of.

      If you don’t shop around for the best deal, you may end up with a mortgage that is:

        • Too expensive: You may pay more interest than necessary or incur higher fees than other lenders charge.
        • Too risky: You may choose a variable-rate mortgage that could increase unexpectedly or an interest-only mortgage that could leave you with a large debt at the end.
        • Too restrictive: You may choose a fixed-rate mortgage that could limit your ability to switch or overpay or a mortgage that could prevent you from renting out your property or making changes to it.

        To avoid this mistake, you should compare different mortgages from different lenders before you make a decision. Use online tools or get a mortgage broker to help you find the best deal for your situation. You should also read the terms and conditions carefully and ask questions if anything is unclear.

        West Wales Budget Planner with tables of monthly expenses, additional income, and planned expenses,

        Not budgeting for the mortgage and protection repayments 

        Another common mistake is not budgeting for the total mortgage and protection repayments that you will have to make each month. A repayment consists of:

          • Principal: The amount of money that you borrowed
          • Interest: The amount of money that the lender charges you for borrowing
          • Mortgage protection: The amount of tax-free income you can get every month to pay your mortgage, bills or more when you cannot work due to sickness or illness.

          A common mistake made by prospective home buyers is not factoring in other costs such as house insurance into their overall mortgage budget. This can make your housing payment much higher than you expected and put a strain on your finances.

          To avoid this mistake, you should find out how much your property taxes and insurance will cost before you apply for a mortgage. You can use online tools like tax calculators or insurance quotes to get an estimate. You should also factor in other housing-related costs, such as:

            • Maintenance and repairs
            • Utilities and bills
            • Furniture and appliances
            • Moving and legal fees

            Make sure that you have some savings left over for emergencies and other goals.

            A person appears stressed while sitting at a desk, resting their head in their hand, with an open laptop and scattered crumpled paper balls

            Not preparing for the mortgage interview 🗣️

            Another common mistake is not preparing for the mortgage interview that you will have with the lender or the broker. The mortgage interview is an important part of the application process, as it allows the lender or the broker to assess your suitability and affordability for the mortgage.

            The mortgage interview can be done over the phone, online, or in person. It can take from 30 minutes to 2 hours, depending on the complexity of your situation. During the interview, you will be asked a series of questions about:

              • Your personal details, such as your name, address, date of birth, and marital status.
              • Your income and employment, such as your salary, bonuses, benefits, and employer details.
              • Your expenses and debts, such as your rent, bills, loans, credit cards, and child support.
              • Your savings and assets, such as your bank accounts, investments, pensions, and properties.
              • Your credit history, such as your credit score, credit report, and any defaults or arrears.
              • Your property details, such as the address, price, type, condition, and valuation of the property you want to buy.
              • Your mortgage preferences, such as the type, rate, term, and amount of the mortgage you want.

              If you are not prepared for the mortgage interview, you may:

                • Give wrong or incomplete answers that could affect your eligibility or affordability.
                • Forget or misplace important documents that could prove your income or identity.
                • Waste time or miss deadlines that could delay your application or lose your property.

                To avoid this mistake, you should prepare for the mortgage interview by:

                  • Reviewing your application form and checking for any errors or omissions
                  • Gathering all the documents that you need to support your application, such as payslips, bank statements, tax returns, ID cards, etc.
                  • Practising some common questions that you may be asked and rehearsing your answers.
                  • Asking a friend or family member to help you with a mock interview and give you feedback.


                  Getting a mortgage can be a daunting task, but it doesn’t have to be a nightmare. By avoiding these common mortgage mistakes, you can make the process smoother and more successful. You can also save money, time, and stress along the way.

                  Remember to:

                    • Apply for a decsion in principle
                    • Be honest and accurate on your application form.
                    • Shop around for the best deal
                    • Budget for the total housing payment
                    • Prepare for the mortgage interview.

                    Ready to navigate the mortgage process with confidence? Contact West Wales Money, to get personalised guidance and support to get a decision in principle to ensure that you avoid all costly errors.

                    We are specialist mortgage brokers which increases your chances to get approved.

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