FTBs warned of unexpected costs

New property buyers have been warned of the variety of costs that can emerge when moving into a house, outside those that are included in first-time buyer mortgages and other deals.

According to Paul Holmes, CEO of Firstrung, moving into a new home can be a joyful experience for buyers, but this should not prevent people from considering the range of expenses they could encounter.

"Once you go past the euphoric experience of moving in, the main focus should be payments and obviously first-time buyers shouldn't lose sight of the fact that unless they're in a short-term one or two-year fixed [rate mortgage], then they're going to have to pay close attention to cost," he said.

Mr Holmes explained that insurance and community charges are among the costs that first-time buyers should be aware of, along with other "incidentals".

He said that buyers in their first months of a mortgage should have '20/20 vision' – allowing for expenses to increase by 20 per cent and putting 20 per cent more than their overall cost aside for emergencies.

"It's just a natural thing that the responsibility starts to hit…after month two or three," Mr Holmes concluded.

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