First timers underestimate the cost of purchasing a home

First timers underestimate the cost of purchasing a home

The vast majority of people buying a home for the first time underestimate what it will cost them to do so, according to a new survey that states many people only look into the cost of affording their mortgage. 

According to the study from home insurance experts Aviva, some three-quarters of people taking their first step onto the property ladder only look at what they will need to save up for a deposit to be able to borrow for a mortgage, which can mean that when it comes time to buy, many have to wait far longer than they expected to. 

For more than half of all prospective first-time buyers, unexpected costs will mean they have to wait two years and eight months longer than they had expected to in order to be able to buy their first home. Nearly half even said that the real price of moving into their first home meant that they had almost abandoned plans to do so altogether. 

Aviva explained the average first-time buyer will typically take nearly four years saving for a first home, banking an average £12,143 during that time. However, the average total amount actually needed in order to be able to complete their purchase is closer to £18,624.

"Scraping together the cash for the deposit alone can be a mammoth task, but that’s just the first hurdle. It’s the other essential costs such as solicitors’ fees and Stamp Duty which can be the sting in the tail, not forgetting any essential repairs which might be needed once the keys have been handed over," said Heather Smith, marketing director at Aviva.

As well as the 'hidden costs' that will come with buying a home, there are also a range of other issues that will leave buyers feeling out of pocket. For example, when moving into a new home, the average buyer will spend more than £1,600 more than expected on repairs and maintenance, which makes for further unexpected expenditure. 

"Anyone looking to buy a home should investigate every nook and cranny of the property before putting in an offer and must not be afraid of asking for several viewings," Ms Smith advised.