People hit with £11k of costs when moving home
Published On 19 September 2007
Aside from mortgage repayments, the typical costs associated with moving into a new home amount to nearly a third of the buyer's annual income over the first 12 months.GE Money has calculated that stamp duty, mortgage fees, moving-in costs and essential household bills mean that a homebuyer has to fork out an additional £11,000 in the first year after they move into a new home.
"While the price of the property may be the major financial anxiety for buyers, they must also consider other expenses associated with the house purchase," explained Gerry Bell, head of mortgage marketing at GE Money.
"At a time when interest rates have been steadily increasing, allowing oneself a financial buffer has never been as important."
However, the report found that most new homeowners are ready for these costs, with many prospective buyers overestimating these outgoings by as much as 30 per cent.
"It is reassuring to see that despite rising interest rates and general market turbulence, borrowers appear to have such a realistic outlook when it comes to how much their property is going to cost them – not just in terms of mortgage costs, but also in terms of the initial setting up and moving in costs and the ongoing household bills."
Figures from the Council of Mortgage Lenders showed that number of mortgages applied for by first-time buyers dipped by seven per cent in July.
