Around 10 per cent of homeowners made the mistake of using all of the savings to fund the deposit on their first home, according to the latest figures from Comparethemarket.com.
Nearly one in ten wished they had shopped around for a mortgage broker, six per cent wished they had ensured the survey was more thorough.
Choosing a mortgage provider
Nearly a quarter of first-time buyers went to their bank to take out a mortgage rather than shopping around for the most competitive rate.
Almost a fifth of first-time buyers felt that using a mortgage broker added no value to the process of buying a house. However, 11 per cent said they would be too nervous not to use one when buying their next home, which demonstrated the lack of confidence many first-time buyers feel in making the best financial decisions.
Furthermore, over a quarter felt they paid over the odds to intermediaries and service providers, with seven per cent disclosing they felt they had significantly overpaid.
Mark Gordon, head of mortgages at comparethemarket.com, said that people with no prior experience in purchasing a property may not be aware which services and products offered to them on the home buying journey are mandatory and which are discretionary and whether they are good value or uncompetitive.
He added: “The whole buying procedure can be intimidating, particularly for those going through the process for the first time.
“Fears around hidden fees and dealing with estate agents, lawyers, surveyors and mortgage companies are legitimate and strong enough to put off people from trying to make a purchase.
“Before putting in an offer on a property, make sure you do your research online, speak to family and friends about the process, use the variety of free tools available to check your eligibility for a mortgage, and get useful tips on how to avoid paying over the odds.”
