The research, carried out by life insurance broker, LifeSearch, highlights the hidden costs of first-home buying and the importance of mortgage life insurance and revealed the minimum savings first-time buyers in the UK will need to take into account when deciding whether to make the move onto the property ladder.
The study took the average costs of solicitor/conveyance fees, surveyor fees, average furniture price, leasehold cost, stamp duty fees, removal van fees and the deposit into account.
The average upfront costs by region
UK average - £35,839
1: North East - £22,387
2: North West - £28,066
3: Yorkshire & Humber - £27,434
4: East Midlands - £31,048
5: West Midlands - £32,046
6: East - £42,688
7: London - £76,742
8: South East - £46,844
9: South West - £39,727
The findings highlighted that first-time buyers in the UK can expect to pay an average of £35,839 in hidden costs, with these costs soaring to £46,844 in the East of England and £76,742 in London.
The North East of England had the lowest average cost, at £22,387, closely followed by Yorkshire and Humber, at £27,434 and the North West, at £28,066.
Average costs increase in the Midlands, to £31,048 in the East Midlands and £32,046 in the West Midlands. In the south, average hidden costs jump up to £39,727 in the South West and £46,844 in the South East.
This data was highlighted by insurance broker, LifeSearch, in a bid to highlight the importance of mortgage life insurance, especially during times of financial uncertainty brought on by the cost of living crisis. You can read LifeSearch’s First-Time Home Buying Guide (link when live) here, where FAQs on first-home buying are answered and average prices are explored.
Emma Walker, from LifeSearch, commented: “Buying your first home should be an exciting time in your life and not a time to be worrying about hidden costs along the way.
A home is probably one of the biggest financial commitments you’ll ever make, so it makes sense to insure it, especially in times of such financial uncertainty. Cover such as mortgage life insurance is recommended when buying a home as it will take the financial strain off your family should the worst happen.”
