Research finds first-time buyers happy to pay the costs in return for not paying rents anymore
First-time buyers are paying, on average, almost £9,500 in their first year of owning a home, according to research published by Aldermore bank.
According to the lender’s latest First Time Buyer Index, first-time buyers are paying on average £2,170 in additional expenses including the cost of unexpected repairs, such as fixing a boiler and any work carried out on their property.
Add the average monthly mortgage payments and the amount that first-buyers pay during their first year of ownership adds up to an average total of £9,434.
The additional expenses and their average first-year cost include ground rent, £291; work needed on house, £474; home insurance, £422; annual building maintenance, £300; annual service charge, £335; and unexcepted repairs, £348.
Aldermore’s research, however, showed that these costs have not deterred first-time buyers, with three out of four, or 77%, saying they are happy to pay out for the extras in return for not paying increasing rents.
“After years of saving for a deposit, first-time buyers may breathe a sigh of relief once they have been handed the keys to their property,” commented Jon Cooper (pictured), head of mortgages at Aldermore. “Although they will have been focused on the end goal and achieving their dream, it’s important not to overlook the additional financial responsibilities that come with owning a home.
“So, it’s important to budget for these additional expenses. Brokers can guide first-time buyers through the homebuying process and help them account for these costs, which is just one of the reasons it’s important to seek advice when you buy.”
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