New research from Compare the Market has revealed that nearly seven in ten households (69%) have been caught out by surprise costs and fees when moving home. The average cost of these hidden fees is £5,837.
The most common surprise costs include legal fees being larger than expected (41%). One in four (26%) noted the high cost of moving, such as hiring a removal van or paying for short-term storage. More than one in five (23%) were surprised by the high cost of mortgage arrangement fees, and 22% noted the unexpectedly high cost of their homebuyer survey.
Households typically paid an average of £1,521 for legal fees, while moving costs averaged £349. The most expensive surprise cost was unplanned building work, which 15% of households had to pay after purchasing a home, typically costing £6,825.
With spring being a popular time to move home, more homebuyers could be caught out by these hidden costs. Two in three households (67%) expressed concern when they discovered these hidden costs. Most homeowners covered the additional expenses using personal savings (65%), while nearly one in five (18%) relied on help from friends and family. Additionally, 15% used a credit card, and almost one in ten (9%) took out a personal loan to cover the costs.
Andy Hancock, chief growth officer at Compare the Market, commented: “We all know that buying your own home is one of the most expensive purchases you’re ever going to make. But you might not be clued up on all the additional costs involved in buying a new home, which can be more than £5,000 on top of the house price. Credit cards and personal loans are popular ways to cover these hidden costs if you don’t have enough savings. If you decide to take out a credit card or personal loan it is worthwhile shopping around online and comparing deals to find one that suits your needs and circumstances.”
