First-time buyers who are switching from renting are being offered advice on how to manage their finances after it emerged many were paying both rent and mortgage.
A study by lender Aldermore found 45% of first-time buyers were paying both their rent and their mortgage at the same time because they couldn’t line up the end of their rental contract with their home purchase.
The average time these new homeowners are doubling up on costs is around 2.4 months, said Aldermore, meaning they are typically spending over £5,000 to juggle the transition.
This is on top of many other additional costs first-time buyers must factor into their purchase – from legal fees and surveying charges to, removal costs and – in some cases – stamp duty.
By planning ahead, however, and making a request for a rolling contract, would-be first-time buyers could avoid this additional cost.
Jon Cooper, director of mortgages at Aldermore, said: “First time buyers may want to have a slight overlap with their rental contract and newly purchased home, to remove some of the stress moving can bring.
“However, this comes at a cost during an already expensive time.
“Keeping your landlord in the loop on your homebuying journey is a smart way to see if you can get timings to align.
“If you’re planning to buy in the next year, you might want to consider approaching your landlord to see if they would be open to a rolling monthly contract or a more flexible break clause.”
You can find out more about other first-time buyer and house moving costs by reading our article ‘What will you pay to buy and sell?’
