A Yorkshire Bank Mortgages survey has revealed that a full 44 per cent of new homebuyers in the UK could be risking debt management ruin by failing to make allowances for added costs such as legal fees or stamp duty.
Furthermore, around 40 per cent of those polled by the financial services provider suggested that any cash they have left after moving house is earmarked for home improvement ideas and not for essential layouts.
Gary Lumby, head of retail at Yorkshire Bank, said: “First-time buyers particularly need to make sure they are aware of the full costs involved with buying their first home and don’t try to over stretch themselves in the first year.
“If interest rates go up again, they could be particularly hard hit if they face larger monthly outgoings and have no leeway.”
A report from the Consumer Credit Counselling Service released recently suggested that millions of British homeowners look set to suffer from debt management concerns throughout 2007.