First-time buyers are increasingly confident about getting on the housing ladder but most are unprepared for the additional costs of the move, according to research from Abbey.
Of those polled 11 per cent of first-time buyers said that the August interest rate cut made them more likely to buy a house, while 18 per cent will do so if a further reduction is made this year.
Compared to the same quarter last year, 34 per cent of first-time buyers feel that they will make a purchase this year, up from 29 per cent.
However, three-quarters of those polled had not budgeted for additional costs such as solicitor’s fees, stamp duty or moving costs.
Gary Hockey-Morley, Abbey’s director of mortgages, said: “Many first-time buyers seem to forget that buying a house incurs significant additional costs beyond a deposit, such as stamp duty and legal costs.
“It’s better to anticipate and budget for these expenses beforehand rather than resorting to borrowing money on credit cards or from family at the last minute.”
Research revealed that while average stamp duty is £1,300, most people hadn’t budgeted for it all while those that did saved an average of £152.
When it came to amassing funds for a deposit, up to 8 per cent of people had no savings plans.
© Adfero Ltd