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First time buyers underestimate the cost of home buying

Nov 02, 2017

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According to the latest research from Aldermore, there is a real lack of understanding around the house buying process and the associated costs amongst those looking to buy their first home.

The biggest expense when buying a home is saving for the deposit and this remains the number one obstacle for 34% of first time buyers. However, the latest research shows prospective buyers are falling short in their estimations of how much they need for their first deposit, aiming to save an average of £34,397 when in fact the average deposit needed is £49,639 according to the ONS.

When examining this trend across the regions, this disparity is particularly evident in London. First time buyers looking to buy in the capital are aiming to save an average of £48,000 when official figures show the average deposit is more than double at £123,000.

When it comes to all the additional costs associated with buying a home, extras such as solicitor’s fees and stamp duty, 32% of prospective first buyers don’t know how much all of this costs. For those who have recently managed to get on the property ladder, 40% spent more than expected on these extra costs by an average £2,334.

Original source - https://www.aldermore.co.uk/about-us/newsroom/