Unforeseen costs cause 21% of UK homebuyers to go over their initial budget by an average of £23,000, with subsequent spending on the property pushing that figure to over £30,000.
Research carried out by money.co.uk revealed that over a fifth of property purchasers go over the maximum asking price they had initially budgeted for.
What's more, the average homebuyer spends £8000 on their property within the first 12 months of purchase, expenditure which many also fail to anticipate.
The study found that, for those who have under-budgeted, 60% of the shortfall comes out of long-term savings.
Of the remaining average £13,400, 63%, is paid for using personal loans (15%), credit cards (27%) and extended mortgages (21%). For many, these are long-term debts, with only a third, 35%, paying them off within the first year. One fifth of homebuyers are currently paying off these debts on top of their monthly mortgage payments.
"These findings demonstrate why methodical planning and budgeting are such important first steps to buying a property. It is all too easy to overlook expenses and end up in a precarious financial position. Households with debt piled upon debt are most likely to be at risk during tough economic times," said Chris Morling, managing director of money.co.uk.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till