First Time Buyers have been warned of the hidden costs that come with homebuying.
Aldermore estimated that first time buyers (FTBs) will need to set aside nearly £4,000 to cover the additional cost that comes with purchasing property.
The lender’s latest First Time Buyer Index survey revealed that the true cost of purchasing a home goes far beyond what prospective first-time buyers intended.
It showed that FTBs on average saved £47,067 for a deposit and spent £3,701 in additional costs during their home purchase journey.
The survey, of 500 first-time buyers, also showed the most expensive of the additional costs of buying include solicitor fees (£654), mortgage fees (£515) and conveyancing fees (£496).
Aldermore said FTBs should set aside extra money to ensure a sizeable emergency fund to cover unexpected expenses.
It added that brokers can help new buyers navigate these additional costs and calculate realistic savings they need to set aside.
However, it noted that only a third (36%) of first-time buyers used a broker, mortgage adviser or independent financial adviser to help them on their purchasing journey.
And a majority of FTBs (91%) who had used a broker said they had a good experience with their service.
Aldermore head of mortgages Jon Cooper 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 focussed on saving a sizable 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.”
