Unforeseen costs cause 21% of UK homebuyers to go over their initial budget by an average of £23,000, with subsequent spending on the property pushing that figure to over £30,000.
Research carried out by money.co.uk revealed that over a fifth of property purchasers go over the maximum asking price they had initially budgeted for. What's more, the average homebuyer spends £8000 on their property within the first 12 months of purchase, expenditure which many also fail to anticipate. The study found that, for those who have under-budgeted, 60% of the shortfall comes out of long-term savings. Of the remaining average £13,400, 63%, is paid for using personal loans (15%), credit cards (27%) and extended mortgages (21%). For many, these are long-term debts, with on...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
