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First-time buyers should factor in life insurance costs

Date: Mon, 06 Jun 2005

First-time buyers are being urged to ensure they have enough life insurance cover and factor in the cost of premiums when buying their new home.

A recent survey highlighted that six in ten prospective buyers are unrealistic in calculating how much their first property will actually cost - with Alliance & Leicester predicting that UK first-time buyers underestimate by a total of £33 billion.

"Whilst there are properties in this price range in some areas, first time buyers should take a look at the market in the areas that they plan to buy," explained the director of mortgages at Alliance & Leicester Stephen Leonard.

"Although they need to keep their costs low, first time buyers should perhaps reconsider their budgets."

People are also being urged to ensure that their life insurance will adequately cover the outstanding mortgage payments, especially as the average house price continues to rise.

Other costs that new buyers forget to factor in when starting on the property ladder include improvement expenses, white goods purchases and service maintenance charges.

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