Homebuyers told beware hidden costs
June 14, 2007 by admin
Filed under News, News-Mortgages
The average British household will spend an additional £23,800 in hidden costs when moving home.
Research by the Co-operative Bank shows that we fork out this amount during our lifetime while moving and few of us have a contingency plan in place to do so.
The figure is greater than the average salary in the UK and Co-op warns that those moving home should be prepared for the additional costs.
Only 56 per cent of those asked said that they had a fund in place to meet these costs, while 15 per cent sink further into debt by taking out a loan to cover the expenditure.
The hidden costs include solicitors’ fees, stamp duty, removal costs and estate agents fees and Co-op is concerned that many buyers are getting into financial trouble by not being properly prepared.
“As house prices have continued to increase it is important for people to look at the bigger picture in terms of costs,” said John Barker, head of mortgages at the bank.
“Hidden costs that are not budgeted for can soon mount up and by having a contingency fund in place it will enable people to be fully prepared for any eventuality.”
The study also found that Brits are happy to sacrifice a number of things in order to get onto the property ladder.
Around 28 per cent said that they do not go on holiday so that they can afford a house, 21 per cent give up eating out and 18 per cent do not buy new clothes.
