Mortgage expert warns of the wave of upfront costs catching first-time buyers off guard – from rent overlap to stamp duty and furnishing expenses
A mortgage expert has advised budding buyers on what to do to avoid one of the most overlooked homebuying headaches. Jen Lloyd, head of mortgages at Skipton Building Society, revealed the biggest financial surprise for many first-time buyers isn’t the deposit.
“People budget meticulously for the purchase price but are often caught off guard by everything that comes with actually moving in,” she explained. “Rent overlap, stamp duty, removals, council tax, furnishings and set-up costs can all land at once.” To help make the experience less overwhelming, she recommends researching and preparing for those extra expenses and creating a realistic ‘move-in buffer’.
The remarks follow a survey of 1,000 first-time buyers, which discovered that dealing with multiple upfront expenses in a short space of time was the part of the buying process they wish they could avoid.
Jen, from Skipton Building Society – which commissioned the research to mark the enhancements of its Delayed Start Mortgage, which enables first-time buyers to delay their first mortgage repayment for up to three months – also warned against trying to do everything at once, a mistake she sees time and again among eager buyers.
“From surveys to furnishing a home from scratch to removals and renovations, it’s easy to feel like every decision has to be made immediately – and rushing often leads to unnecessary spending and avoidable stress,” she said.
“Buying your first home is exciting, so it’s natural to want everything done as quickly as possible. But slowing things down where you can, and prioritising what genuinely needs doing now versus what can wait, usually saves money, time and a lot of anxiety.”
The experience was frustrating for many buyers but of the 64% who were renting at the point of purchase, 35% ended up paying rent and a mortgage at the same time. For 8% this overlap stretched beyond three months.
An additional 24% had to terminate their rental agreement before securing a completion date, whilst 23% were concerned they could be left without a place to live for a period.
Other significant frustrations included the physical act of moving, the lengthy gap between exchange and completion, and the constant checking of property apps ‘as if it was a full-time job’.
Jen Lloyd added: “Buying your first home should be an exciting milestone. We’ve enhanced our Delayed Start Mortgage to give buyers greater flexibility around when their repayments begin, whether that’s one, two or three months after completion, helping to ease some of the immediate pressure.
“This can also be added onto our 100% Track Record Mortgage, which recognises strong rental payment history and removes the need for a deposit.
“Everyone’s route onto the property ladder is different, and offering fairer options that reflect those individual circumstances can help make the move into homeownership feel far more manageable.”
TOP TIPS FOR FIRST-TIME BUYERS TO AVOID COSTLY HOMEBUYING MISTAKES:
1. Don’t underestimate the cost of the first few months
The biggest financial shock for first-time buyers often isn’t the deposit, but the cluster of costs that arrive all at once – from rent overlap and legal fees to removals, furnishings and set-up expenses. Research these early and seek advice to help build a realistic “move-in buffer” to make the transition far less stressful.
2. Don’t try to do everything at once
It’s easy to feel overwhelmed by surveys, solicitors and removals and assume everything needs doing immediately. Prioritise what genuinely needs action now and what can wait – slowing the process where possible can save money, time and unnecessary stress.
3. Look beyond the mortgage repayment
Focusing solely on the monthly mortgage figure can give a false sense of affordability. Factor in council tax, utilities, insurance, service charges and ongoing maintenance to build a true picture of monthly costs before making an offer.
4. Protect your credit score before you apply
Avoid taking on new credit in the months leading up to a mortgage application and clear any outstanding debts where possible. Even small commitments, such as phone upgrades, can affect affordability.
5. Get your paperwork ready early
Missing documents are one of the biggest causes of delays. Having payslips, bank statements, ID and proof of deposit organised from day one can speed up the process and give buyers a competitive edge.
