While first-time buyers are focused on deposit-saving, they could forget to set aside the average £3,701 needed for additional buying costs, research from Aldermore has revealed.
Aldermore’s survey of 500 recent first-time buyers revealed that the cost of purchasing a home goes beyond what prospective first-time buyers intended.
On top of the average £47,0672 for a deposit, recent buyers spent £3,701 in additional costs on average during their home purchase journey.
The most expensive costs were solicitor fees (£654), mortgage fees (£515) and conveyancing fees (£496).
Although most first-time buyers will not be liable for Stamp Duty, should the price of their property exceed £425,000, prospective buyers should also ensure to incorporate this cost into their savings plans.
Recent buyers have also been faced with a volatile housing market, meaning many first-time buyers are dealing with delays or false starts and spending an additional £2,260 as a result.
Only a third (36%) of first-time buyers used a broker, mortgage adviser or independent financial adviser to help them on their purchasing journey.
Nevertheless, 91% of those who had used a broker said they had a good experience with their service.
Jon Cooper, head of mortgages at Aldermore, said: “A deposit is often the biggest expense in the home buying journey, taking years for first time buyers to raise a sufficient amount.
“However, with buyers laser focused on saving a sizeable deposit, they often overlook the significant additional costs that come with buying their first home.
“As a lender, we’ve attempted to help with this where we can. Earlier this year, for instance, we began offering free valuations on all applications for residential mortgages.”
He added: “In the current economic environment, it’s also vitally important new buyers set aside a robust emergency fund, to ensure they are able to weather any financial setbacks or additional expenses they may face once they’re a homeowner.
“New buyers shouldn’t be expected to be experts on the property market – that’s why it’s important to seek advice from a broker who can help guide them on their road to homeownership.”
