Don’t let hidden costs of owning a home sink your dream

Buying your own home is the ambition of millions. But while saving for the deposit, getting a mortgage and paying the monthly instalments are all tough, you could underestimate other costs in getting on the housing ladder.

Many could hit you just as you are purchasing the property. Besides home loan repayments, you’ll need to calculate other spending including moving and insurances.

New research from Which? Mortgage Advisers shows that more than one in five home buyers – 22 per cent – are busting their budget when purchasing a property. This potential leap into the red is driven by a mix of high prices for homes and failing to work out the real costs of home ownership.

The Which? Mortgage Advisers findings are based on talking to 2,000 home buyers. These show the under 30s are the most vulnerable to pressure to over-spend with a third in this age group – 34 per cent – paying more than they had planned to buy their own home. But those in older age groups are not immune. The research found that almost half 45 per cent – of all home buyers are pushed to the upper limits of what they had intended to spend.

Going over budget can have serious consequences. The higher deposit and mortgage repayments needed in today’s housing market, even if many loan interest rates are at a record low, could impact on your ability to meet other financial commitments over both the short and long term. If you get it seriously wrong, you could find that your home ownership dream turns to dust before you even pick up the keys.

But even pushing yourself to