First-time buyers will fork out over around £9,434 in the first year of home ownership, for additional expenses like unexpected repairs.
According to Aldermore’s First-Time Buyer Index, which surveyed 2,000 prospective first-time buyers and 500 recent buyers, average mortgage repayments equal around £7,624 or around £605 per month.
Within the additional expenses, the most expensive item was work needed on the house at £474, followed by home insurance at £422 and unexpected repairs, such as a washing machine or boiler breaking down, at £348.
Annual service charge came to £335 and annual building maintenance came to £300. Ground rent was pegged at £291.
Over three quarters of first-time buyers were happy to fork out for extras in exchange for not paying rising rents with 62 per cent said they wanted the security of owning their own property.
First-time buyers can’t ignore the extras
Jon Cooper, head of mortgages at Aldermore, said: “After years of saving for a deposit, first-time buyers may breathe a sigh of relief once they have been handed the keys to their property. Although they will have been focused on the end goal and achieving their dream, it’s important not to overlook the additional financial responsibilities that come with owning a home.
“So it’s important to budget for these additional expenses. Brokers can guide first time buyers through the home buying process and help them account for these costs, which is just one of the reasons it’s important to seek advice when you buy.”