Homebuyers cutting corners
April 26, 2007 by admin
Filed under News, News-Mortgages
A large number of homebuyers in the UK are cutting corners financially as house prices rise and this could lead to big problems in the future.
Research by AA Legal Services highlights an alarming trend of buyers failing to ensure that their new home has been properly checked before signing up to buy it.
The average home in the UK currently costs around £185,000 and Brits owe a combined £340 billion in mortgage repayments.
It is this debt, says the AA, that is causing new homebuyers to run the risk of cutting corners.
“With home buyers stretching themselves to the financial limits to afford their home, many are cutting back on the relatively low costs of basic legal and social inspections,” said James Molloy from the firm.
“New home owners who do not carry out basic checks, face discovering too late that their dream home could actually be a financial time bomb.”
According to AA Legal Services, only 28 per cent of homeowners questioned had commissioned a structural survey on their property or looked at the flood risk.
In addition, only 14 per cent had tried to get an independent conveyancing service, while just 21 per cent looked for an insurance quote and 29 per cent considered council tax costs.
“I’m very worried that so few take steps to protect their investment and ensure that their interests are represented,” added Mr Molloy.
