Insufficient research

Since choosing a mortgage provider is one of the most significant decisions in your life, make a research on as many lending institutions as you can before applying. Stay informed about the state of the market using all the sources available. Don’t expect that a broker will find you the best bargain. Check the range of mortgage providers a broker has on their panel.


Don’t give in to the pressure of lenders who are ready to offer more than you can afford. Try to be honest with yourself, calculate what budget is the most comfortable for you to manage and stick to it. While working out your budget, include not only the interest rate, but also mortgage arrangement fees, deferred establishment fees, stamp duty, and possible legal fees which might change the total cost of your mortgage dramatically.

Buying when prices are high

Don’t become one of those unfortunates who bought their house when the market was at its peak. You will not be able to forgive yourself for this mistake when the value of your house takes a sudden downturn.

Adding fees to the mortgage

If it is possible, pay all the fees up front. If you don’t, they will become a part of your mortgage and you will have to pay interest on them till the end of your mortgage term.

Paying for additional items you don’t need

Mortgage lenders often add on a variety of items and extra fees to increase their profits. Make sure that your mortgage deal doesn’t include unnecessary features and junk fees. Although they might seem petty, they will summate and you risk paying much more than you need to.

Not applying for first-time buyers' programs

First-time buyer’s programs, usually supported by government, offer more attractive interest rates and conditions than deals offered by private lenders. Some of these programs are designed for people with stained credit history.

Not shopping around over the length of your mortage

Don’t make the mistake of chaining yourself to one lender. You might come across much more attractive terms offered by other lenders. However, in case the penalties of switching lenders are too heavy, ask your current lender to reduce your interest rates. As a rule, lenders are ready to compromise in order to retain their customers.

Fixing your mortgage for a long period

Even though you find it tempting to extend repaying your mortgage for many years, you are not recommended to do so. You never know how your life might change.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.