You are here: Home - Uncategorized -

Hidden costs

Written by:

The average household in Britain spends £23,800 on the ‘hidden’ costs of moving house over their lifetime, which equates to more than the average UK salary, according to a new study by The Co-operative Bank.

As the main focus is often on the house price itself, these ‘hidden’ costs, which include all the extra expenses apart from the actual house price – such as solicitor’s fees, stamp duty, removal costs and estate agent’s fees – can often be often underestimated, despite the fact that collectively they add up to more than £10 billion for the total population.

Despite all the hidden expenses involved with moving, only half of those questioned (56%) had a contingency fund in place to meet these costs.  Other home movers get themselves deeper into debt by taking out further loans or borrowing on credit cards (15%), whilst some people are still relying on relatives for that extra help (5%).

John Barker, Head of Mortgages at The Co-operative Bank, comments “As house prices have continued to increase it is important for people to look at the bigger picture in terms of costs. 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. ”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Britons failing to plan for the future

A third of Brits are “financial fantasists” according to the latest quarterly savings survey published by National Savings & Investments.