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Expect to spend a third of your salary, new homeowners told

Stamp duty, mortgage fees, moving costs, solicitors' fees, bills….it all adds up and new homeowners should expect to spend about a third of their salary in the first year alone on costs associated with buying a house.GE Money estimates that the average costs in the first year of owning a home come to about £11,000 - the good news is that many prospective borrowers actually over-budget for these costs.Gerry Bell, head of mortgage marketing at GE Money Home Lending commented on the findings: "While the price of the property may be the major financial anxiety for buyers, they must also consider other expenses associated with the house purchase."At a time when interest rates have been steadily increasing, allowing oneself a financial buffer has never been as important. "It is reassuring to see that despite rising interest rates and general market turbulence, borrowers appear to have such a realistic outlook when it comes to how much their property is going to cost them - not just in terms of mortgage costs, but also in terms of the initial setting up and moving in costs and the ongoing household bills." He added: "It appears that most prospective potential buyers are prepared for the costs associated with buying a home, as well as those associated with setting up the property and the ongoing running costs. "Indeed, our research has found that the average borrower actually overestimates what it will cost in every area of the home purchase. In the current unpredictable environment this is unarguably a good sign."

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