"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"
- Jon Cooper - Aldermore
New research has highlighted that additional costs including home insurance, home improvements, and unexpected repairs quickly add up alongside mortgage payments.
Aldermore’s latest First Time Buyer Index, a survey of 2,000 prospective first-time buyers and 500 recent buyers, reveals what first-time buyers can expect to be paying in their first year of owning a home.
Not including mortgage repayments, first-time buyers will pay on average £2,170 in additional expenses including the cost of unexpected repairs, such as fixing a boiler and any work carried out on their property.
The first year of ownership adds up to £9,43422 if average monthly mortgage payments are factored in. However, the costs haven’t deterred first-time buyers with three out of four (77%) happy to pay out for the extras in return for not paying increasing rents (62%) and the security of owning their own property.
The research shows that additional expenses can include ground rent (£291), repair work (£474), home insurance (£422), annual building maintenance - such as for areas of a communal flat, (£300), annual service charges (£335), and of course any unexcepted repairs such as washing machine or boilers breaking down (£348)
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.”
