Home purchase costs revealed
September 19, 2007 by admin
Filed under News, News-Mortgages
A homeowner will have to pay over £11,000 in the first year after purchasing a property, it is claimed.
Figures from GE Money Lending have revealed that home purchase costs are equivalent to 30 per cent of a borrower’s annual income in the first year of owning a property.
With essential bills estimated to set an average UK homeowner back £3,500 each year, stamp duty fees also contribute an average of £1,200 while the cost of moving in an equipping a new property is estimated at £4,721.
GE Money Home Lending head of mortgage marketing Gerry Bell commented that consumers need to look beyond the financial burden of “getting on the ladder” and consider the additional expenses involved in purchasing a home.
However, on the finding that prospective borrowers over-budget for these costs by about 30 per cent, he added: “It is reassuring to see that despite rising interest rates and general market turbulence, borrowers appear to have such a realistic outlook.”
Meanwhile, recent financial turmoil in the markets, which has emerged after the US sub-prime mortgage crisis, is believed to stabilised house prices in London for the whole of next year, according to the Royal Institution of Chartered Surveyors as reported by the Times.
