FTBs clued-up over home costs

Posted: 19 Sep 2007 10:59:16 GMT

New research shows that first-time buyers (FTBs) have a realistic view of the costs associated with buying a home.

New research shows that first-time buyers (FTBs) have a realistic view of the costs associated with buying a home.

It bodes well for the future of the housing market as it shows that new buyers are not buying without doing their research and are only entering the market when they feel they are financially capable of doing so.

In fact, a study by GE Home Money Lending has revealed that most FTBs actually over estimate how much money they will need.

According to the firm, the average buyer will need to spend around £11,000 in the first year after buying a property on top of the initial home costs.

This money goes towards mortgage and legal fees, stamp duty, surveys and the cost of actually setting up home.

However, it is revealed that most FTBs will over-budget for these expenses by around £3,500, increasing their chances of being able to cope with any unexpected nasty surprises that may arise.

"It appears that most prospective potential buyers are prepared for the costs associated with buying a home, as well as those associated with setting up the property and the ongoing running costs," commented Gerry Bell from GE Home Money Lending.

"Indeed, our research has found that the average borrower actually overestimates what it will cost in every area of the home purchase. In the current unpredictable environment this is unarguably a good sign," he added.

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