The six shocking ways first-time buyers are being caught out
- Unexpected costs hit 70% of first-time buyers, causing rising anxiety for almost a third of people
- Over 60% of buyers also face mortgage rejection when finding their dream home
- Solicitor delays and “waiting around” among the highest drivers of anxiety and stress
- The First Time Buyer Anxiety Index 2026 delves into the main pain points for buyers in today’s market
Home ownership among young people has been on the decline, with 20-somethings twice as likely to be on the property ladder in the 90s compared to today, and while starting that journey is an achievement in itself a new study by LPL has found that it’s proving a stressful ordeal. And it’s leaving many blindsided.
The First Time Buyer Anxiety Index 2026 has exposed a significant confidence gap among aspiring homeowners, with 90% going into the process feeling confident they understand the process, only to find the reality of the situation more challenging.
Louise Stephens-Pantoja, Head of Operations at LPL said: “Getting onto the property ladder should be one of life’s most exciting milestones, but it is turning into a stressful ordeal for too many people.
In fact, 70% of first-time buyers are hit with unexpected costs, while 60% also face mortgage rejection, while a quarter of people said any unforeseen experience negatively impacted their mental health.
The six shocks hitting first-time buyers
1. Unexpected costs
The biggest shock and anxiety driver is the financial sting of an unexpected cost. 70% of buyers admit they have encountered costs they hadn’t anticipated, highlighting the importance of budgeting beyond the deposit and purchase price.
2. Solicitor delays
Delays and things out of the buyers control are the biggest anxiety risers, and solicitor delays are unexpected for 68% of first-time buyers. It can lead to spikes in frustration too and have a real impact on the buying journey.
3. Property purchases falling through
One of the most heartbreaking events of any homebuying journey is seeing their dream home slip away, and it’s something 66% of first-time buyers experience, suggesting that today we should almost be prepared that bad news may be on the horizon and it’s not done until it’s done.
4. Gazumping heartbreak
63% have reported being gazumped, meaning having an offer accepted doesn’t always mean a property is secured. First-time buyers are often blindsided by the emotional and practical disruption caused by higher competing offers.
5. Survey surprises
Almost two thirds (62%) of first-time buyers are experiencing survey issues, adding further uncertainty to an already demanding process, with dream homes often painting a different picture once the survey comes back!
6. Mortgage rejection
Some 62% of first-time buyers see a mortgage application rejected. It appears many may feel confident but aren’t quite understanding of the lending requirements and financial circumstances before committing to a purchase.
Louise added: “What is clear from the report is that preparation, clear communication and access to professional guidance are helping buyers navigate the process with greater confidence and helps greet challenges with more preparation and less anxiety.”
The waiting game is causing the greatest anxiety
Outside of the unexpected, it’s actually waiting on other people and things outside of their control which causes the most anxiety. Waiting for completion is the most nerve-wracking, with 28% of people reporting anxiety, while one in five see rising anxiety during surveys, conveyancing and the mortgage process.
“It’s really important for us to engage with buyers right throughout their time working with us. By actively communicating with the buyer right throughout the process, we take away the unknown and uncertainty, ensuring that anxiety remains as low as possible at what is a big stage in anyone’s life,” explained Louise.
Equally, even at the beginning, while excitement builds during the viewing process, it peaks around viewing four or five, with stress and anxiety then rising as the search continues.
Confidence is no guarantee of a smooth move
Ultimately, while it is certainly positive first-time buyers are going into the process full of confidence, it isn’t necessarily preparing them for the complications that can follow. Part of that problem is coming from solely turning to family, friends and online articles for guidance, which often don’t paint the full picture. For first-time buyers, when going through the process they are 10% more likely to find the advice of friends and family and online articles more valuable than professionals, but when looking back retrospectively, the advice of solicitors, lenders, brokers and other professionals exceed that of social media, articles and friends and family.
Louise concluded: “Speaking to friends and family or listening to influencers is a great way to gain first-hand experience, but every homebuyer’s journey is different and not everyone faces the same highs or bumps in the road. The best course of action to ensure you navigate the process as educated as possible is to speak and listen to the experts around you.”
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