Ongoing costs to be aware of as a First Time Buyer!

Our previous article looked at the upfront costs for a first time home buyer, now lets say you’ve moved into your dream new home. Job done. But don’t forget the everyday living costs!

Affording to live month to month is key and understanding those ongoing costs and planning for them means you won’t get caught out when that bill lands in your inbox.

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So, what are the usual ongoing monthly costs?

• Mortgage Repayments

Obviously, you now need to pay for your mortgage loan. Your monthly mortgage payments will depend on the size of the loan, interest rate, and term. Consider fluctuations in interest rates if you have a variable-rate mortgage. This cost will more than likely be the largest cost in your monthly outgoings.

• Home Insurance

Building Insurance is an essential cost as this is required by your mortgage lender to cover any damage to your new home. Contents Insurance (optional but we recommend it) covers your belongings. Annual premiums vary based on your property type, rebuild costs and location.

• Council Tax

This is a local council/government charge that applies to everyone who owns a house. This is a charge for all local amenities and services such as getting your bin emptied, keeping the streetlights on and paying for local police.   Remember to factor in at least a 5% annual increase in this.

• Utilities

Monthly bills for electricity, gas, water along with TV licence/Sky/cable, broadband/landline. Again, some of these costs depend on the size of the home and your consumption.

• Life Insurance/Income Protection

Life insurance and income protection are recommended to cover the mortgage in the event of death or an inability to work. Monthly premiums depend on personal circumstances and the amount of cover you choose. 

• Maintenance and Repairs

Regular upkeep of the property, such as repainting, boiler maintenance, or roof repairs, must be budgeted for. These costs can vary but tend to increase with the age of the property

• Leasehold Fees (if applicable)

If purchasing a leasehold property (common for flats/apartments), you may have to pay ground rent and service charges for the upkeep of communal areas and shared services

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Remember all these costs are additional to your regular personal expenditure such as:

- Food costs

- Car lease payments, insurance, tax, running costs and maintenance

- Mobile phone which most people have

- Pet costs and insurance

-  Perhaps Gym costs

- Additional TV Subscriptions e.g. Netflix, Prime, Disney+

With all this in mind, make sure you budget appropriately when looking to purchase a house, you don't want to find yourself stressed and struggling with your monthly outgoings instead of enjoying your new home!

If you would like to speak to someone for mortgage advice, life insurance or home insurance get in touch with Holistic Mortgage & Protection Ltd.

01642 130730 advice@holisticmortgages.co.uk