Top Mistakes to Avoid When Applying for a Mortgage
- ajitkainth
- Sep 17, 2025
- 4 min read
Applying for a mortgage is one of the biggest financial decisions most people will ever make. Yet many first-time buyers – and even experienced homeowners – make errors that cost them time, money, and in some cases, their dream home.
At Ape Finance, we’ve seen first-hand how simple missteps can derail an application. To help you navigate the process smoothly, we’ve compiled the most common mortgage mistakes and practical tips to avoid them.
1. Not Checking Your Credit Report in Advance
Your credit score plays a key role in whether your mortgage is approved and at what rate. Even a small error, such as an outdated address, can reduce your options.
Key Note: Check your credit file with agencies like Experian, Equifax or TransUnion six months before applying and correct any mistakes.
2. Failing to Save for a Sufficient Deposit
The size of your deposit influences your mortgage rate. While some lenders accept 5% deposits, higher deposits often unlock significantly better deals.
Did You Know? Buyers with a 25% deposit can access interest rates up to 1% lower than those with only 5%, saving thousands over the loan term.
3. Changing Jobs Just Before Applying
Stability matters to lenders. Switching jobs too close to an application can make your income appear uncertain.
Key Note: Wait until your mortgage is finalised before changing roles.
4. Ignoring the Full Costs of Buying a Home
Mortgage repayments are only part of the picture. Legal fees, valuation costs, surveys, stamp duty, and moving expenses all add up.
Tip: Plan a full budget before committing so you’re not caught out later.
5. Making Large Purchases During the Process
Buying a new car or applying for additional credit while waiting for mortgage approval can damage your affordability checks.
Did You Know? Even interest-free purchases can raise red flags with lenders.
6. Not Shopping Around for the Best Deals
Many people accept the first mortgage offered. But comparing multiple lenders – or working with a broker – can save significant money.
Key Note: Independent mortgage brokers often have access to exclusive products not available directly to the public.
7. Overstretching Your Budget
Borrowing the maximum available may look appealing, but it can leave you vulnerable to financial strain if interest rates rise or life circumstances change.
Tip: Borrow comfortably within your means, not just what you’re offered.
8. Skipping a Mortgage Agreement in Principle (AIP)
An AIP shows sellers you’re serious and financially capable. Without one, your offer may be less attractive.
Did You Know? An AIP is usually valid for 60–90 days and gives you an edge in competitive markets.
9. Not Reading the Fine Print
Hidden charges, exit fees, or restrictions on overpayments can cause nasty surprises later.
Key Note: Review all terms and conditions before signing and clarify with your broker or lender.
10. Neglecting Legal Support
Choosing the cheapest solicitor may lead to delays or errors. An experienced conveyancer can save both time and stress.
11. Forgetting to Plan for the Future
Affordability must cover today and tomorrow. Consider life changes such as growing families, job changes, or interest rate increases.
Tip: Always leave room in your budget for unexpected changes.
Key Notes Recap
Credit reports should be checked and corrected well before applying.
A larger deposit improves your mortgage options.
Avoid new credit and job changes during the process.
Budget for hidden costs beyond the deposit.
Always seek professional advice to find the best deals.
Did You Know?
According to GOV.UK, the average first-time buyer deposit in the UK is now around 20% of the property’s value – a figure that has steadily increased over the past decade.
The Financial Conduct Authority (FCA) requires lenders to run strict affordability checks, meaning your spending habits, debts, and even future interest rate rises are considered before approval.
Research by MoneyHelper, a government-backed organisation, shows that many first-time buyers underestimate the extra costs of buying a home, such as solicitor fees, surveys, and stamp duty. Source
Citizens Advice highlights that missing just one mortgage payment can affect your credit score and make future applications much harder. Source
Key Takeaways
Preparation is crucial for a successful mortgage application.
Avoiding simple mistakes can save money and prevent stress.
Working with a professional mortgage adviser ensures access to better deals and clearer guidance.
TL;DR (Too Long; Didn’t Read)
When applying for a mortgage, avoid common mistakes like ignoring your credit file, overstretching your budget, or skipping an Agreement in Principle. Plan for all costs, review terms carefully, and seek expert guidance to secure the best deal with confidence.
Frequently Asked Questions (FAQs)
1. How long does it take to get a mortgage approved in the UK?
The process can take anywhere from two to six weeks, depending on the lender, your financial situation, and how quickly you provide documents. Having everything ready in advance can speed things up.
2. Do I need a mortgage broker, or can I go directly to a bank?
You can go directly to a bank, but a mortgage broker like Ape Finance has access to multiple lenders and products, often helping you secure better deals tailored to your needs.
3. What is an Agreement in Principle (AIP) and why is it important?
An AIP is a statement from a lender showing how much they might lend you based on your financial situation. It strengthens your position as a buyer and shows estate agents you’re serious.
4. Can changing jobs affect my mortgage application?
Yes. Lenders prefer applicants with stable employment. A job change during the application process can raise concerns about income stability, potentially delaying or affecting approval.
5. What hidden costs should I be aware of when buying a home?Beyond your deposit, you may need to budget for solicitor fees, surveys, valuation fees, moving costs, and possibly stamp duty. These can add up to several thousand pounds.
For Further Guidance: Choosing the Right Mortgage Broker
If you're unsure how to pick a broker, Ape Finance has published an excellent guide titled How to Choose a Mortgage Broker: The Essential 2025 Guide.
It covers:
What mortgage brokers do
The difference between tied, multi-tied and whole-of-market brokers
Key questions to ask when selecting a broker (credentials, fees, lender access, reviews)
The benefits of using a regulated, fee-free broker such as Ape Finance
