O
ver half of Brits are spending more than they originally planned to when buying a house, new research has revealed.
According to broker Online Mortgage Advisor, 51% of Brits have bought a house for at least 10% more than they originally intended to spend.
The majority felt influenced by their emotions over practical needs, resulting in a hike in spending, while others blamed their partners and even their children.
Of the 2,105 Brits surveyed, just 13% stated that it was exactly on budget, 11% stated that it was within 10% less than their original budget, while 7% said that they bought a house for more than 10% less than they originally set out to.
The top five reasons for exceeding the budget were:
1. I fell in love with a specific house and had to have it – 68%
2. I wanted to pay extra for the right area/location – 47%
3. My partner encouraged me to spend more – 33%
4. We bought a bigger house as we felt it was better value for money- 25%
5. My estate agent encouraged me to spend more – 29%
Further to these results, 6% of respondents stated pressure from their children contributed to an increase in spending.
Pete Mugleston, director of Online Mortgage Advisor, said: “Buying the right house within budget can be a really difficult task, especially in a growing market where property prices are still increasing in most parts of the UK. Often people will set out to buy based on price, but then check to see what they could get if they just spent a bit more.
“From then the decision becomes less about price and more emotionally driven, and often people will either come across their dream home or find it hard to go push the budget down again after seeing what they can purchase with a small increase.
“That said, it’s important people are realistic about what they can afford and to stick to it, factoring in potential changes in interest rates – they are low right now but will homeowners be able to afford mortgage payments if rates go up? Mortgage advisors should go through payments at different rates to help people plan ahead and ensure they aren’t overstretching.”
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