FTBs overestimate home costs

First-time buyers (FTBs) tend to be very realistic when it comes to the amount of money they need to remain on the property ladder.

It may be assumed that somebody with a first time mortgage may underestimate exactly how much money they will need in the first year of living in a home.

However, GE Money Home Lending says that this is not the case and points out that most actually overestimate how much they will need.

According to the firm, the average person with their first mortgage will need to spend around £11,000 in the first 12 months following their purchase.

This money will go on mortgage and legal fees, stamp duty, 'setting up home' and survey expenses.

It seems that most FTBs are not ignorant of these costs however, with the average new buyer expecting to pay £3,488 more on these things than is necessary.

"It appears that most prospective potential buyers are prepared for the costs associated with buying a home, as well as those associated with setting up the property and the ongoing running costs," said Gerry Bell from GE Money Home Lending.

"Indeed, our research has found that the average borrower actually overestimates what it will cost in every area of the home purchase. In the current unpredictable environment this is unarguably a good sign," he added.

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