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Home buying 'more expensive than many think'

Monday, 13 September 2010 6:00 PM

Getting on to the property ladder is more expensive than many Brits think.

A fifth of buyers do not set realistic budgets when they set out to find a property and are in for a shock, according to research by money.co.uk.

It found that 21 per cent paid more for their properties than they had planned to, with the average gap between what they thought it would cost and the reality reaching nearly £23,000.

Furthermore, buyers go on to spend £8,000 on their new home within the first 12 months, despite nearly a quarter (23 per cent) not budgeting for this.

This lack of foresight causes thousands to dip into their long term savings, take out a credit card or loan or extend their mortgage.

The findings highlight the need for methodical planning and budgeting, said Chris Morling, managing director of money.co.uk.

"It is all too easy to overlook expenses and end up in a precarious financial position. Households with debt piled upon debt are most likely to be at risk during tough economic times," he said.

Brits must consider their mortgage deal carefully with experts pointing out that the base rate is at an all-time low and can only go up.

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