The rising costs associated with moving into a new property have highlighted why many families find it necessary to take out a homeowner loan. A recent survey conducted by GE Money reported that people who find the house of their dreams typically have to pay £11,372 to actually make it their home.

This fee is on top of the cost of actually purchasing the property, which is in itself becoming increasingly difficult - especially for first-time buyers - given the current climate of rising interest rates and rapidly augmenting house prices.

"While the price of the property may be the major financial anxiety for buyers, they must also consider other expenses associated with the house purchase," commented Gerry Bell, head of mortgage marketing at GE Money Home Lending.

In addition to servicing a mortgage, homeowners will also be expected to pay stamp duty, solicitors and mortgage fees, moving-in costs and essential household bills during their first year in a new property, making demand for homeowner loans - which enable people who own their own property to borrow money - understandable.

Stamp duty is one of the highest costs, with the average buyer having to fork out in the region of £1,200 to the government, while the combined cost of solicitors needed during the home moving process has also been found to exceed £1,000. The GE Money survey discovered that house-hunters are required to pay around £900 for their solicitor's legal services, in addition to a £600 charge for mortgage arrangement fees and surveys.

But the spending doesn't stop there - moving costs and refurbishments set even the average new homeowner back £4,721. Further to these payments, homeowners must also find the money to run their home.

Council tax and utility bills are the biggest burden in this regard and account for around 59 per cent of the typical total monthly budget for household costs. Meanwhile, 22 per cent of a homeowner's income is used up servicing mortgage repayments, GE Money said.

Surprisingly, homeowners expect to spend even more on set-up costs than they do on average - with most potential homebuyers envisaging expenditure in this area to reach £14,860.

"It is reassuring to see that despite rising interest rates and general market turbulence, borrowers appear to have such a realistic outlook when it comes to how much their property is going to cost them - not just in terms of mortgage costs, but also in terms of the initial setting up and moving in costs and the ongoing household bills," Mr Bell said.

This does not mean, though, that homeowners can afford these costs in the short term - making a homeowner loan doubly important.

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