Blow to Britons as majority of homeowners hit by ‘hidden costs’ of nearly £6,000
'Hidden costs' are raking up for those moving house
GETTY
The majority of Britons are being hit with “hidden costs” of nearly £6,000 when moving house, according to new research.
A survey conducted by Compare the Market is shedding light on the additional expenses households are being forced to pay.
Almost seven in ten families have been caught out by surprise costs and fees when moving from one property on average.
Based on analysis by the comparison website’s experts, the average cost of these hidden fees comes to £5,837.
Among the most common surprise “hidden costs” when moving home include legal fees which 41 per cent found to be larger than expected.
Some 26 per cent of those polled cited the expensive cost of moving, which can include payments for removal and short-term storage.
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Interest rate hikes have pushed up mortgage repayments for many GETTY Furthermore, over one in five said that they were surprised by the high cost of mortgage arrangement fees (23 per cent) and their homebuyer survey (22 per cent).
On average, households usually have to pay around £1,521 in legal fees when moving home in the UK.
However, the most expensive “hidden cost” turned out to be unplanned building work which 15 per cent of movers have had to pay.
Typically, this expense sets households back by an average of £6,825 in a massive blow to household finances.
This comes as families are already paying an extortionate amount in mortgage repayments due to high interest rates.
Here is a full breakdown of the extra “hidden costs” Britons have to pay on average when purchasing a new home:
- Legal fees - £1,521
- Moving costs - £349
- Mortgage arrangement fees - £1,242
- Homebuyer survey - £813
- Valuation fee - £574
- Mortgage broker fees £603
- Unplanned building work - £6,825.
Andy Hancock, the chief growth officer at Compare the Market, urged buyers to be aware of these potential costs which could add up.
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Homebuyers are being urged to be alert to these surprise expenses
GETTYHe explained: “We all know that buying your own home is one of the most expensive purchases you’re ever going to make.
“But you might not be clued up on all the additional costs involved in buying a new home, which can be more than £5,000 on top of the house price.
“Credit cards and personal loans are popular ways to cover these hidden costs if you don’t have enough savings.
“If you decide to take out a credit card or personal loan it is worthwhile shopping around online and comparing deals to find one that suits your needs and circumstances.”