First-year home ownership costs are more than just mortgage payments
After years of diligently saving for a deposit, the moment first-time buyers receive the keys to their property often brings a sigh of relief. While the focus has been on achieving this dream, it’s crucial not to lose sight of the additional financial responsibilities accompanying homeownership. As such, budgeting for these extra expenses is of utmost importance.
ADDITIONAL EXPENSES ADD UP ALONGSIDE MORTGAGE PAYMENTS
New research underscores how swiftly additional costs, including home insurance, home improvements and unexpected repairs, can accumulate alongside mortgage payments. A survey involving prospective and recent first- time buyers sheds light on
the typical expenses they can anticipate during their first year of homeownership.
AVERAGE MONTHLY MORTGAGE PAYMENTS AND COSTS NEED TO BE CONSIDERED
Excluding mortgage repayments, the research highlights that first-time buyers will pay an average of £2,170 in additional expenses, which include unexpected repair costs, such as fixing a boiler or any work performed on their property. When average monthly mortgage payments are considered, the first-year ownership cost is a substantial £9,434.22.
A WORTHWHILE INVESTMENT DESPITE ADDITIONAL COSTS
Nevertheless, these costs haven’t discouraged first-time buyers.
A significant majority (77%)are content to cover these additional expenses in exchange for escaping escalating rents (62%) and securing their property’s stability.
BREAKING DOWN THE ADDITIONAL EXPENSES
The research indicates that additional expenses can encompass ground rent (£291), repair work (£474), home insurance (£422), annual building maintenance – for communal areas of a flat, for example (£300), annual service charges (£335) and, naturally, unexpected repairs like washing machines or boilers breaking down (£348).
>> PLANNING TO BUY YOUR FIRST PROPERTY AND WANT TO DISCUSS YOUR MORTGAGE OPTIONS? <<
If you’re a first-time buyer and need help navigating the home-buying process and accounting for these costs, please get in touch.
Get in touch with one of our mortgage advisers today to learn more about your mortgage options.
Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017,
HK T: +852 6645 4462 – email info@cedar-crest.co.uk
Your home may be repossessed if you do not keep up with repayments.
Comments