First-time buyers will fork out over around £9,434 in the first year of home ownership, with approximately £2,710 coming for additional expenses like unexpected repairs.
According to Aldermore’s First-Time Buyer Index, which surveyed 2,000 prospective first-time buyers and 500 recent buyers, average mortgage repayments equal around £7,624 or around £605 per month.
Within the additional expenses, the most expensive item was work needed on the house at £474, followed by home insurance at £422 and unexpected repairs, such as a washing machine or boiler breaking down, at £348.
Annual service charge came to £335 and annual building maintenance came to £300. Ground rent was pegged at £291.
Over three quarters of first-time buyers were happy to fork out for extras in exchange for not paying rising rents with 62 per cent said they wanted the security of owning their own property.
First-time buyers can’t ignore the extras
Jon Cooper (pictured), 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.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.