FTBs surprised by first-year costs
April 19, 2007 by admin
Filed under News, News-Mortgages
Many people who take out a mortgage for the first time are surprised to find that the first year in their new home is a real financial strain.
According to Yorkshire Bank, a large number of first-time buyers (FTBs) fail to budget for a number of outgoings and soon find themselves living on very little money.
The bank claims that 44 per cent of FTBs completely forget to budget for legal fees, stamp duty and a property survey.
A further eight per cent do not put any cash aside for the cost of moving, while unexpected costs, such as damaged or broken appliances, are also not accounted for.
“It is too easy to quickly move on to thoughts of redecorating and building a new conservatory as soon as the offer is accepted, failing to factor in all the costs of a new home,” commented Gary Lumby, head of retail at Yorkshire Bank.
“Overlooking costs such as surveys and stamp duty is asking for trouble when, as our survey suggests, there are likely to be less predictable expenses as well.”
Yorkshire Bank’s research found that the majority of people do put money aside for redecorating when they move into a new home.
A total of 76 per cent of home owners fit a new kitchen and bathroom within the first year of moving into a property and this is another cost that FTBs must consider.
