First-time buyer news: First-time buyers unaware of property finances

27-Apr-2006

Many first-time buyers are unaware of the full financial costs of buying a home, according to a new study.

A report by IFA Promotion indicates that seven out of ten new buyers are unaware of the additional financial products that are needed with a mortgage.

Life insurance policies, income protection in case of illness or injury, endowment policies and buildings insurance must all be considered by mortgage holders.

Aspiring first time buyers wanting advice on mortgages, to find out how much they can borrow and how much it will cost, should request advice from the UK’s leading High Street Brokers, Bradford and Bingley.

"Buying a home and arranging a mortgage is often a daunting experience, especially for first-time buyers, and the fact that so many people do not fully understand the full complexity of associated financial matters comes as little surprise," commented Karen Barrett from IFA Promotion.

"However, for many, it is also the single largest financial commitment they will ever make, and consequently one of the key triggers to consider other financial products."

Mortgage lenders have risen to the challenge of creating a growing number of options for first time buyers.

Despite this lack of knowledge on financial products, a first-time buyer takes out an average of 1.4 such products along with their mortgage, found the survey.

Find out more about the housebuying process in the FirstRungNow Home Buyer's Guide.

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