Whether you’re moving house or buying your first home, there’s more to purchasing a property than the purchase price. Here’s your handy guide to some of the key costs that crop up during the big move.
Estate Agency fees
If you’re planning on moving house and you’ve got one to sell, don’t forget to include the fees from the estate agent for selling your property. Fees are usually a percentage of the agreed selling price of your property, and can vary from around 1% up to 3.5%. When it comes to choosing an estate agent, get valuations and fees from two or three before you make your decision; sometimes there’s room for negotiation on the fee so don’t be afraid to ask. The fees are usually payable once your property has sold, but some estate agents charge a non-refundable upfront fee, that you pay regardless of whether they sell your home. Do some research to find out which works best for you.
Solicitor costs
Conveyancing fees generally cost between £400 and £1,500 for buying a house and can be up to around £2,500 if you’re both buying and selling. You’ll also need to pay for searches (around £200 to £450), land registry fees (anything from £20 to around £900), and bank transfer fees for funds being sent between the buyer and seller solicitors and to/from the mortgage provider (usually around £25 to £50).
Government Charges
Another significant cost you need to factor in is your stamp duty land tax liability. As a first time buyer, you’re exempt from paying stamp duty on properties up to £300,000. For everyone else, you pay stamp duty on the proportion of your property over £125,000. The cost is tiered, which essentially means your stamp duty increases the more your property costs. If you’re buying a second home or a buy to let property, you’ll pay an additional 3%.
If you’re thinking of moving, or buying a house for the first time, our expert and friendly advisers at Mortgage Advice Bureau are ready to help.
Mortgage Costs
There are lots of mortgage products available, which means there’s a pretty significant variation in how much setting up the mortgage will cost. The first thing you’ll need to consider is the deposit amount; you’ll need to put down a percentage of the purchase price of your new home as a deposit. Usually the lenders won’t offer a mortgage product requiring anything less than a 5% deposit, but remember its usually cheaper the more deposit you can provide (you’re borrowing less money and you’ll get more favourable interest rates and product fees).
When it comes to mortgage product set-up fees, these range from free (for example, first time buyer deals, or deals for raising funds against an unencumbered property) to £1,500 and more. You’ll also be asked to pay a valuation fee, usually somewhere in the region of £500, or more if you want a more in-depth survey to be carried out for peace of mind.
If you’re looking for mortgage advice in Hull, get in touch with us today for an initial free appointment. Call us on 01482 440244 or send us an e-mail.