People looking to purchase a home are being faced with unexpected costs, says Key Financial Consultants.

The financial advisers claim buyers are underestimating legal fees, stamp duty, conveyancing and deposits when planning to buy a property.

It also claims that there has been an increase in lender fees since the introduction of regulation in November 2004.

"It's an ideal situation to have savings in place before starting down the road to purchasing your first property," comments Dominic Mansley, managing director of Key Financial Consultants.

For those who do not have money in the bank, he claims that 100 per cent-plus mortgages can be advisable for some, especially if individuals are expected to achieve higher income later in life.

According to the Council of Mortgage Lenders, during the second quarter of 2007 the average first-time buyer is aged 28 and on a salary of £35,000. The average mortgage is for 90 per cent of the property's value.

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