First-time buyers switching from renting are being given advice on how to manage their finances after it emerged many were paying both rent and mortgages.
A survey by lender Aldermore found that 45% of first-time buyers paid both rent and mortgage at the same time because they could not time the end of their lease to coincide with the purchase of their home.
The average time for these new homeowners to double their costs is around 2.4 months, says Aldermore, meaning they typically spend more than £5,000 trying to juggle the transition.
This is in addition to the many other additional costs that first-time buyers have to consider when making their purchase – from legal fees and surveying costs, moving costs and – in some cases – stamp duty.
However, by planning ahead and requesting a rolling contract, potential first-time buyers can avoid these additional costs.
Jon Cooper, mortgage director at Aldermore, said: “First-time buyers may want to have a little overlap between their rental contract and their newly purchased home, to remove some of the stress that comes with moving.
“However, this adds costs at an already expensive time.
“Keeping your landlord informed about your homebuying journey is a smart way to see if you can get the timing aligned.
“If you are planning to buy in the coming year, you may want to consider approaching your landlord to see if they are open to a rolling month-to-month contract or a more flexible break clause.”
More information about other start-up and moving costs can be found here read our article ‘What do you pay to buy and sell?‘