Nearly a quarter of first time buyers have no idea about the real additional costs they will face, when taking a first time buyer mortgage and buying their first home.
One first time buyer in 10 believes that cost extras will amount to just £1,000 on their first home, when in fact conveyancing payments alone can amount to this much, according to the financial website unbiased.co.uk.
At the extreme end of the scale, 4% of first time buyers admitted they were completely unaware that any additional costs would arise at all, the research revealed. The data indicates the urgent need for quality independent first time buyer mortgage advice.
In order to cover the additional costs of homebuying, over two-fifths (41%) of first time buyers said they would break into their savings, while 18% said they would seek to roll these costs into their mortgage deal.
The principle costs associated with most mortgages deals include a survey of the home you wish to buy. Depending on the level of detail you require, the costs of a survey can range from £50 to £1,000.
Solicitor’s fees will range between £600 to £1,000 for a standard process, but if complications arise additional work may be required, at additional cost.
A local, environmental and water search will also be needed, and this will be charged to you by your solicitor, a cost of up to £300 depending on your local council.
If you are not a first time buyer, then you will not enjoy the current stamp duty holiday on all homes up to £250,000. If you are liable to pay stamp duty then this will apply at 1% of the cost of your home. For example, when purchasing a home valued at £200,000, as a second time buyer, you would have to pay £2,000 to the government.
