Aldermore’s First Time Buyer Index, surveying 2,000 prospective and 500 recent first-time buyers, reveals that new homeowners can expect significant expenses in their first year.
On average, aside from mortgage repayments, first-time buyers spend £2,170 on additional costs like unexpected repairs and home improvements.
When average monthly mortgage payments are included, the total expenditure for the first year of homeownership amounts to approximately £9,434.
Despite these costs, 77% of first-time buyers prefer owning their home, citing relief from increasing rents and the security of property ownership as key motivators.
The breakdown of additional expenses includes ground rent, work needed on the house, home insurance, annual building maintenance, service charges, and unexpected repairs like boiler breakdowns.
Jon Cooper, head of mortgages at Aldermore, said: “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.
“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 home buying process and help them account for these costs, which is just one of the reasons it’s important to seek advice when you buy.”
