Financial uncertainty was one of the biggest contributors to this stress. More than a third of respondents (34%) said they most dreaded having to stretch their finances to cover unexpected costs, while 32% were concerned about potentially overpaying for hidden costs.
The true cost of moving
Even with careful planning, the costs of buying and moving can quickly mount. L&G found that homeowners reported spending an average of £1,836 on unexpected moving costs, excluding the deposit. This rises to £2,041 in London and £2,033 in Belfast, highlighting the financial pressures many buyers face during the process.
Fees were also among the aspects respondents most frequently found difficult to understand when applying for a mortgage, cited by 27%. This further highlights concerns around the large, and often unexpected, costs associated with getting on the property ladder.
Generational knowledge gap
Nearly half (45%) of those aged 55 and over said they were aware of all moving costs, compared with just 12% of young millennials aged 25–34 and 14% of Gen Z respondents aged 18–24.
Younger homeowners were also more likely to underestimate the ongoing costs of running a home, with 40% of young millennials saying their utility bills were higher than expected after moving in.
Mortgage confusion
Concerns about affordability are compounded by confusion around the homebuying process itself. Almost a third of respondents struggled to understand different mortgage types, while 39% of 25–34-year-olds found equity-related terms confusing. A further 38% said they did not fully understand the concept of an Agreement in Principle.
By comparison, 39% of those aged 55 and over said they understood mortgage-related concepts clearly. Confusion was particularly pronounced in London, where respondents reported higher levels of difficulty understanding fees (38%), equity (36%), and mortgage types (35%).
Confidence on the property ladder
Despite these challenges, many buyers remained positive about their financial planning. Nearly two-thirds (63%) said they felt confident when buying their first home, including 20% who described themselves as very confident.
However, confidence varied across age groups. It was highest among 25–34-year-olds (71%) and lowest among those aged 45–54 (53%). Regionally, confidence was highest in the East Midlands (69%) and lowest in Northern Ireland (56%).
Protecting the home after purchase
Once buyers receive the keys, attention often shifts from purchasing the property to protecting their home and finances. Buildings insurance (67%) and contents insurance (61%) were the most common forms of protection taken out. However, fewer than 4 in 10 (38%) buyers took out life insurance, while 20% opted for income protection and just 18% bought critical illness cover.
Clare Beardmore, Director of Mortgage Club at L&G, said: “Buying your first home is a major milestone, but our research shows it can feel overwhelming, particularly when faced with unexpected costs and unfamiliar mortgage terminology. That’s where advisers play such a key role in helping buyers navigate the homebuying process with confidence, ensuring they make informed decisions when arranging a mortgage and have the right protection in place.”
L&G said it aims to ensure first-time buyers understand the costs involved, helping to reduce unexpected surprises when purchasing their first home.