10 Biggest Mortgage Mistakes and How to Avoid Them
Buying a home or refinancing your mortgage is one of the biggest financial decisions you’ll ever make. Yet, many borrowers — even well-prepared ones — fall into traps that can cost thousands in the long run.
At Mortgage Bridge, we’ve seen it all. From missing out on better rates to choosing the wrong term or underestimating fees, simple mistakes can make a big difference. The good news? Every one of them can be avoided with the right knowledge and advice.
Here are the 10 biggest mortgage mistakes people make — and how you can steer clear of them.
1. Not Checking Your Credit Report Early
Your credit history is one of the first things lenders look at. A small error or old default can lead to higher rates or even a declined application.
How to avoid it:
- Check your credit file with all three main agencies (Experian, Equifax, and TransUnion).
- Fix any mistakes before you apply.
- Pay bills and credit cards on time in the months leading up to your application.
If you’ve had past issues like missed payments or defaults, don’t panic — specialist lenders may still help. We cover this in detail in our guide on getting a mortgage with bad credit.
2. Focusing Only on the Interest Rate
A low interest rate looks appealing, but it’s not the whole story. Some deals have high fees, while others lock you in with early repayment charges.
How to avoid it:
Compare the overall cost of the mortgage, not just the rate. Look at the annual percentage rate of charge (APRC), fees, and flexibility. Sometimes a slightly higher rate with lower fees works out cheaper over the term.
We can help you compare options like-for-like before you commit.
3. Ignoring the Impact of the Mortgage Term
The mortgage term — how long you take to repay the loan — massively affects both your monthly payments and total cost.
Common mistake: choosing the longest term possible to reduce payments. It feels affordable but can cost tens of thousands more in interest.
How to avoid it:
Find a balance that fits your budget and long-term goals. You can often start with a longer term and shorten it later through remortgaging or overpayments.
We explore this more in our guide on how to choose the right mortgage term.
4. Underestimating Additional Costs
It’s easy to focus on the purchase price and forget the extras — valuation fees, legal costs, moving expenses, and insurance.
How to avoid it:
Budget for:
- Mortgage arrangement fees
- Solicitor or conveyancing fees
- Survey or valuation costs
- Stamp Duty (if applicable)
- Broker or advice fees
Having a small contingency fund helps you avoid last-minute stress.
5. Making Large Financial Changes Before Completion
Big financial moves — like taking out a new loan, financing a car, or changing jobs — can disrupt your application. Lenders check affordability right up until completion.
How to avoid it:
Try to keep your finances steady between your mortgage offer and completion date. If you’re planning any major changes, talk to your broker first.
We’ll help you time things right to protect your application.
6. Applying Directly to a High-Street Lender
Many buyers go straight to their bank — but banks only offer their own products. You could miss out on more suitable or flexible options elsewhere, especially if you have complex income or a less-than-perfect credit record.
How to avoid it:
Work with an independent broker who can access a wider panel of lenders, including specialists who aren’t available directly to the public.
At Mortgage Bridge, we regularly help clients find options they didn’t even know existed.
7. Forgetting About Affordability Changes
Your mortgage might be affordable now — but what about when interest rates change or life costs rise?
How to avoid it:
Run a few “what if” scenarios:
- What if rates rise by 1% or 2%?
- What if your income dips for a few months?
Choose a term and product that you can handle comfortably, not just barely.
8. Ignoring the Option to Overpay
Overpayments are one of the most powerful ways to save on interest and shorten your mortgage term — yet many homeowners never use them.
How to avoid it:
Check if your mortgage allows 10% annual overpayments without penalty. Even an extra £50–£100 a month can save years off your term and thousands in interest.
We can calculate exactly how much you could save by overpaying strategically.
9. Not Getting an Agreement in Principle Early
An Agreement in Principle (AIP) shows how much a lender might let you borrow and helps estate agents take you seriously.
How to avoid it:
Get your AIP sorted before house-hunting. It’ll help you set realistic expectations and move quickly when you find the right home.
We can help you secure one quickly — without affecting your credit score.
10. Going It Alone Without Professional Advice
Mortgages aren’t one-size-fits-all. Going it alone can mean missing out on better rates or lenders who would actually approve your case.
How to avoid it:
A qualified mortgage adviser can:
- Compare deals from across the market
- Spot potential issues before you apply
- Guide you through documents and lender requirements
- Save you time, stress, and money
We’re here to help you make confident, informed choices — from first quote to completion.
Final Thoughts
Avoiding these common mortgage mistakes isn’t about luck — it’s about preparation, awareness, and the right advice.
At Mortgage Bridge, we specialise in helping people navigate the mortgage process with clarity and confidence, no matter their credit history or income type. Whether you’re a first-time buyer, remortgaging, or buying again after a setback, we’ll help you make smart decisions and avoid costly missteps.
If you’d like to talk through your situation or check your options, we’re happy to help.