This is according to a study by mortgage lender, Aldermore, which offers an insight into the financial realities of owning a home for those taking their first step on the property ladder.
Its First Time Buyer Index, which surveys 2,000 prospective buyers and 500 recent buyers, found new homeowners spend, on average, £474 in home improvements in their first year.
On top of this home insurance can set them back a typical sum of £422 and unexpected repairs – for example replacing or fixing a boiler – can cost on average £348.
This adds up to a total of £9,434 if you include the average mortgage repayments in that year.
Whilst this might sound like a hefty sum, it appears to have not put off many first-time buyers, the majority of whom (77%) said they were happy they were no longer wasting money on rent.
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.”
Other costs to factor in when buying a home
If you are saving for a home, it’s worth considering some of the other costs you will need to account for and include these in your budget.
Survey – many buyers opt for a survey of their new home to weed out any potential problems. This is different to the valuation which is commissioned by the mortgage lender. You can find out more about these here but they will cost you on average between £400 and £1,500.
Conveyancing – you will need to hire a solicitor to do the legal work required to buy a home and this can set you back between £850 to £1,500. You can find out more about conveyancing charges here.
Stamp duty – although many first-time buyers are exempt, if your property is valued at £450,000 or above you will still pay a percentage on the amount which is in excess of £450k. You can find out more about this here.
Removal costs – these are on the rise but you can find ways to lower the cost. Shopping around and getting lots of quotes is sensible but we have provided more tips here.
