Common Mortgage Mistakes and How to Dodge Them

Buying a home is exciting, but it’s easy to slip up when you’re juggling rates, fees and paperwork. A single mistake can add thousands to the cost of your loan. Below are the most common errors we see and simple steps to keep your mortgage on track.

Mistake #1: Ignoring the Full Cost of Your Mortgage

Most people focus on the advertised interest rate and forget about the hidden extras. Arrangement fees, valuation costs, and early‑repayment charges can quickly turn a "great" rate into a costly deal.

Start by asking the lender for an APR (annual percentage rate) that includes all fees. Compare that figure across at least three lenders. If a bank advertises 2.1% but adds a £1,500 arrangement fee, the APR will look higher than a slightly higher rate with no fee.

Also, check whether the loan has a fixed‑rate period and what the rate will be after it ends. Some deals look cheap for the first two years and then jump dramatically. Knowing the total amount you’ll pay over the life of the loan helps you avoid surprise spikes.

Mistake #2: Skipping the Credit Score Check Before You Apply

Your credit score is the first thing lenders look at. A low score can mean a higher interest rate or even a rejection. Many borrowers wait until the application stage to discover they need to improve their score.

Pull your credit report from the main UK bureaus (Experian, Equifax, TransUnion) a month before you start shopping. Spot any mistakes – wrong addresses, outdated defaults – and get them corrected. Pay down any high‑interest credit cards and try to keep your utilization below 30%.

Even a small bump in your score can shave 0.1%–0.2% off the rate, saving you hundreds over the term. If your score is borderline, consider a short period of “credit repair” before you apply.

Other common slip‑ups include borrowing more than you can afford, not budgeting for monthly repayments, and assuming a higher deposit automatically gets the best deal. Use a mortgage calculator to see how different rates and loan amounts affect your monthly payment, and always factor in council tax, insurance and maintenance costs.

When you’re ready to remortgage, treat it like a fresh mortgage. Don’t just chase a lower rate; re‑check your credit score, compare fees, and ask about early‑repayment penalties on your existing loan. A lower rate can be wiped out by a hefty exit fee.

Finally, keep all communication in writing. Get any promises about rate caps or fee waivers on paper before you sign. This protects you if the lender tries to change terms later.

By paying attention to the total cost, checking your credit, and running the numbers before you sign, you can sidestep the most frequent mortgage blunders and keep more money in your pocket.",