Recent research has revealed that nearly half of first-times buyer have previously experienced a fall-through on their purchase.
According to Aldermore, 47% of those who have purchased their first property this year have previously had their transaction collapse in the last 12 months.
The survey, based on the feedback of 1,505 prospective first time buyers and 505 that had bought their first property, also indicated that each of these fall-throughs cost £1,305 on average.
The research also looked at the expectations of those buying for the first time, indicating that many are underestimating the deposit they’ll need by a substantial margin.
Whilst figures from the Office for National Statistics indicate that the average UK deposit is around £49,669, the amount first-time buyers were aiming to save was around £15,000 less.
The study also revealed a lack of knowledge around other associated costs, with just under a third (32%) stating that were unsure how much things like stamp duty and conveyancing fees would amount to.
Commenting on this was Charles McDowell. The commercial director for mortgages at Aldermore stated: “It is clear there is a divergence between perception and reality when it comes to the house buying process.
“This often means those looking to buy are under-estimating the associated costs as well as the time it could take to complete, especially with first-time buyers expecting it to take four years on average to save for a deposit.
“This lack of understanding clearly has financial implications but it can also take its toll emotionally.”
