Beyond the deposit, buyers reported spending an average of £1,836 on costs they had not anticipated

UK homebuyers face more than £1,800 in unexpected costs, according to research by major financial services group Legal & General (L&G).

Beyond the deposit, buyers reported spending an average of £1,836 on costs they had not anticipated. That figure jumps to £2,041 in London and £2,033 in Belfast, pointing to significant regional variation in financial pressure.

The L&G study identified a substantial gap in financial awareness between age groups. While 45% of those aged 55 and over said they were familiar with all moving costs, that proportion dropped to just 12% among young millennials aged 25–34, and 14% among Gen Z respondents aged 18–24. Among young millennials, 40% said utility bills were higher than expected once they moved in.

Understanding mortgage products poses a further obstacle. Almost a third of respondents struggled to distinguish between different mortgage types. Among 25–34-year-olds, 39% found equity-related terms confusing, and 38% said they did not fully understand what an Agreement in Principle entails.

By contrast, 39% of those aged 55 and over reported a clear grasp of mortgage concepts. Confusion was most pronounced in London, where higher proportions of respondents reported difficulty with fees (38%), equity (36%) and mortgage types (35%).

Despite those pressures, 63% of respondents said they felt confident when purchasing their first home, including 20% who described themselves as very confident. Confidence was highest among 25–34-year-olds (71%) and lowest among those aged 45–54 (53%). Regionally, it peaked in the East Midlands (69%) and was lowest in Northern Ireland (56%).

The survey of 2,000 UK homeowners also found that nearly half (48%) regard moving house as the most stressful life event — ahead of divorce or the breakdown of a relationship.

Once in their new home, buyers most commonly took out buildings insurance (67%) and contents insurance (61%). Life insurance was arranged by fewer than four in 10 buyers (38%), while income protection (20%) and critical illness cover (18%) were less common still.

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, said Clare Beardmore, director of Legal & General Mortgage Club.

She said: 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.