Almost half of first-time buyers who have now purchased a property this year previously experienced a collapsed transaction.
Aldermore looked at a sample of 505 first-time buyers and 1,505 prospective first-time buyers, with 47% of those now on the property ladder saying they have experienced a fall-through in the past year, while 26% have done so over the previous three years.
Aldermore claims this cost buyers an average of £1,305 due to the lost legal fees.
The bank also found that first-time buyers are underestimating the level of deposit they will need to get on the property ladder by £15,000 on average.
Aldermore asked first-time buyers how much they were aiming to save for a deposit, with the lender finding an average of £34,397.
However, this is £15,388 below the Office for National Statistics average deposit in the UK at £49,639.
When it comes to all the additional costs associated with buying a home, with extras such as solicitors’ fees and Stamp Duty, 32% of prospective first-buyers said they didn’t know how much all of this costs. For those who have recently managed to get on the property ladder, 40% spent more than expected on these extra costs by an average £2,334.
Charles McDowell, commercial director for mortgages at Aldermore, said: “It is clear there is a divergence between perception and reality when it comes to the house buying process.
“This often means those looking to buy are under-estimating the associated costs as well as the time it could take to complete, especially with first-time buyers expecting it to take four years on average to save for a deposit.
“This lack of understanding clearly has financial implications but it can also take its toll emotionally.”