First-time buyers are failing to budget for additional costs when buying a home, says Yorkshire Bank.
Research by the bank reveals that more than one in three FTBs overlooked costs such as legal fees, arrangement fees and survey charges. As a result, many are having to consider personal loans in addition to their mortgages.
On average, a first-time buyer will have to pay an extra £3,155 when buying a home, which is made up of £1,380 in stamp duty, £500 in legal fees, £870 on a survey and £400 in house removal costs.
Head of personal finance services Gary Lumby says many buyers are so focused on saving for a deposit that they forget the extra costs of moving home.
He says FTBs are feeling so pressurised to secure a foothold on the property ladder that they are inadvertently getting themselves into more debt.