Common First-Time Buyer Mistakes in Wales – And How to Avoid Them

About to take your first step onto the property ladder in Wales? It’s exciting – but it’s also easy to make expensive mistakes if you’re not prepared.

To help you avoid the common pitfalls, here are the top first-time buyer mistakes we see all the time – and exactly how to avoid them.

1. Putting down too small a deposit

When you’re paying high rent, saving for a deposit can feel impossible. So it’s tempting to aim for the absolute minimum and just “get in”.

Yes, you can buy with as little as 5% deposit, but:

• The smaller the deposit, the fewer mortgage deals you’ll qualify for

• Interest rates are usually higher at 90–95% loan-to-value (LTV)

• Your monthly repayments can be significantly more expensive

That’s how some first-time buyers end up stretched every month and regretting the deal they took.

How to avoid this

If you can, aim for at least 10%, and ideally 15–20% deposit. Even moving from 5% to 10% can:

• Open up more lenders

• Get you better rates

• Reduce your monthly payments

Use our Mortgage Calculator to see how different deposit levels change your monthly payments and overall borrowing.

Tip: If you’re using Help to Buy – Wales or Shared Ownership, your effective deposit and equity position can look different – speak to an adviser before you assume “5% is enough”.

2. Not leveraging your chain-free status

As a first-time buyer, you’re chain-free – and that is gold dust to many sellers.

You don’t have a property to sell, you’re not relying on someone else’s sale completing, and you can usually move more quickly. That makes you less risky than a lot of other buyers.

But many first-time buyers never mention this properly.

How to avoid this

When you put in an offer:

• State clearly in writing that you’re a chain-free first-time buyer

• Confirm you have (or are obtaining) a Mortgage Agreement in Principle (AIP)

• Emphasise that you’re ready to proceed and flexible on dates

The more attractive you look to the seller, the more chance you have of:

• Getting your offer accepted

• Negotiating on price or inclusions (white goods, etc.)

3. Forgetting to sort out home insurance

Big one.

If you’re buying with a mortgage, your lender will usually require buildings insurance to be in place from exchange of contracts, not when you get the keys.

From exchange, you’re financially responsible for the property – even if you haven’t moved in yet. If there’s a fire, flood or structural issue in that window and you’re not insured, you could be in serious trouble.

How to avoid this

• Arrange buildings insurance so that it starts on the date of exchange, not completion.

• Consider taking out contents insurance to protect your belongings during and after the move.

If you’re not sure what you need, speak to us – we can help match your cover to your lender’s requirements.

4. Not researching the local area properly

Too many first-time buyers fall in love with a property and forget to look at what’s going on around it.

The result? They move in and then realise:

• There’s regular noise (late-night venues, busy roads, industrial estates)

• There are pending planning applications for housing, commercial buildings or major roads

• Public transport links are poor or non-existent

• Local facilities and schools aren’t what they’d hoped

How to avoid this

Do your homework:

• View the property more than once and at different times of day

• Walk the street and surrounding area – day and night

• Check local planning applications online

• Look up school Ofsted/Estyn reports, crime data and local amenities

A good property report and local estate agent can help fill in the gaps – don’t skip this step.

5. Not researching the property itself

Even experienced buyers sometimes let emotions run the show. For first-time buyers, it’s even more common.

You see a place you love, make an offer quickly, and only later discover:

• Historic issues or serious past repairs

• Poor energy efficiency (and higher bills)

• Long time on the market for a reason

How to avoid this

Ask questions. Lots of them. Don’t assume the seller or agent will volunteer information.

Things to ask include:

• How long has the property been on the market?

• Have there been any major alterations or structural work?

• What is the EPC rating – and how much are typical monthly bills?

• Why are the sellers moving? Have they found somewhere else?

• Have there been any historic issues (damp, subsidence, flooding)?

If you don’t ask, you don’t get.

6. Looking for a home before speaking to a mortgage adviser

Classic mistake.

You find your dream home online, fall in love, then discover you can’t actually borrow enough or don’t meet the lender’s criteria. Huge emotional crash.

How to avoid this

Before you seriously start house hunting:

• Speak to a professional mortgage adviser

• Work out what you can realistically borrow and afford

• Get a Mortgage Agreement in Principle (AIP) in place

This way you:

• Know your budget

• Avoid wasting time on properties out of reach

• Look like a prepared, serious buyer to agents and sellers

Use our Mortgage Calculator for a rough idea, then book a chat so we can pin down the real numbers.

7. Failing to get a proper survey

You wouldn’t buy a car without lifting the bonnet.

Yet some first-time buyers rely only on the basic mortgage valuation (which is for the lender, not you) and skip an independent survey. Then the roof leaks, the electrics fail, or damp appears – and the repair costs run into thousands.

How to avoid this

Always get a survey appropriate to the type and age of the property:

• Homebuyer Report – for relatively modern, conventional properties

• Full Building Survey – for older, unusual, or heavily altered homes

A survey can uncover:

• Structural issues

• Roof and damp problems

• Old wiring or plumbing

• Signs of subsidence or movement

Don’t treat the survey as a box-ticking exercise – use it to decide whether to renegotiate, ask for repairs, or walk away.

8. Not checking your credit score early enough

A lot of first-time buyers only discover they’ve got credit blips when a lender declines their application.

This can be:

• Missed payments

• Old defaults or CCJs

• High credit utilisation

• Errors or even fraud on their file

How to avoid this

Months before you plan to apply:

• Check your credit report with the main agencies

• Dispute any errors

• Pay down credit cards and avoid going over limits

• Make all payments on time

• Avoid taking out new credit unless absolutely necessary

If there are issues, a broker can still often place you with a suitable lender – but it’s always better to know in advance.

9. Forgetting the extra costs of owning a home

Too many first-time buyers focus only on the mortgage payment and forget everything else.

In Wales you’ll also face:

• Land Transaction Tax (LTT) if your purchase price is above £225,000

• Council tax (which varies by local authority and band)

• Gas, electric, water and broadband

• Insurance – buildings (mandatory with a mortgage) and contents

• Ongoing maintenance and repairs

How to avoid this

Work out total monthly ownership cost, not just the mortgage.

Ask yourself:

• Can I comfortably afford everything – even if interest rates rise?

• Do I still have some buffer each month?

Use the Mortgage Calculator and then add realistic figures for council tax and bills to get a full picture.

10. Underestimating renovation and improvement costs

That “doer-upper” at a bargain price can easily become a money pit.

New kitchen. Bathroom. Rewiring. Plastering. Flooring. It all adds up – fast.

How to avoid this

Before you commit:

• Get quotes for major works (not just guesses)

• Ask the surveyor to comment on the likely work required

• Speak to your solicitor about any planning or building regulation issues

If the numbers are tight before renovations, think very carefully before taking on big projects.

11. Not finding the right mortgage adviser

Your mortgage is likely the biggest financial commitment you’ll ever make.Yet some first-time buyers go straight to their own bank and accept the first deal they’re offered – without checking if it’s actually the best fit.

A good adviser:

• Looks at a wide panel of lenders, not just one bank

• Explains fixed vs variable, term length, fees, and total cost over the term

• Tailors recommendations to your situation and future plans

• Helps you understand how much you can borrow and what’s sensible

How to avoid this

Don’t go it alone. Get proper advice.

At Martin & Co, we can connect you with experienced, independent mortgage advisers who:

• Understand the Welsh market and LTT rules

• Work with first-time buyers every day

• Talk to you in real language, not jargon

Schedule a free, no-obligation call with our Mortgage Advisor to discuss your plans, avoid these common pitfalls, and make your first home purchase in Wales as smooth as possible.