Independent Whole of Market Mortgage Advice –
The costs of moving home.

Independent Whole of Market Mortgage Advice to Simplicity is not just about finding you the best mortgage available, we want to go beyond your expectations, and as such provide a host of other useful information. Buying a house takes careful budgeting. You need to know all of the costs before you go ahead and they aren’t always that obvious.

Buying a house takes careful budgeting. You need to know all of the costs before you go ahead and they aren’t always that obvious.

You need to ask yourself two questions.

Can I afford to purchase the property?
Can I afford to maintain my payments once I move in?

To find out more about the costs involved with buying a house simply click on the links below to expand the text:

Stamp Duty

This is the tax imposed by the government on purchased property only – i.e. you don’t pay tax on the property you’re selling, just the one you’re buying.

Stamp Duty is taxed as follows:-

Purchase Price of Property	Stamp Duty Payable (%)
£0 – £120,000	0
£120,000 –£250,000	1
£250,001 – £500,000	3
£500,000 +	4

Solicitors / Conveyancing Fees

These are the fees charged by your solicitor to perform all the legal duties associated with buying a house. Simplicity recommends Evida for a fast, efficient and cost effective conveyancing service.

Solicitors will charge for arranging the sale of your old home and the purchase of your new one. The more expensive the property you are purchasing the higher their fees will be.

Additional charges will be incurred for leasehold properties and more complex conveyancing. You should expect to pay between £300 and £1000 for legal fees.

Searches

Carried out by the solicitor, these are a safeguard to ensure all aspects of the property are in order. Some items which a Search might investigate are as follows:-

Property renovations/alterations
Location of local Coal Mines
Flood / subsidence risk
Local housing market etc

The cost incurred through instructing Searches can vary dependent upon the location and comdpany used, however, it normally ranges somewhere between £100 - £200. On some occasions it may be possible to take out insurances and not carry out a search. This can be useful if you are in a hurry but not usually advisable.

Removal Fees

Some people prefer to do this themselves, either by hiring a van or by borrowing one from a colleague. But from personal experience – it’s far easier to watch someone else carrying your sofa that trying to do it yourself!!!

This is an expense that needs careful research, as quotes between companies can vary enormously. It is therefore advisable that you obtain at least 3 quotes before finally choosing a removal firm.

The quotes will be based upon the distance between properties, the amount of furniture, any extra insurance, time required and the number of individuals to complete the job. Should you wish a firm to be recommended , please ask one of our advisers.

Arrangement Fees

These are the fees charged by the Lender to cover the administration costs associated with the set-up of the mortgage account. Arrangement fees can vary dependant upon the product and can be up to 1% of the loan amount.

Typically those products that are fixed, or have low discounts have higher arrangement fees, however many Lenders will allow you to add the fee to the mortgage order to make it more affordable.

Booking Fees

This is very similar to an arrangement fee; however, it is used to gain a greater level of commitment. For example, if you were to pull out of a product with an arrangement fee, your money would be refunded, however, if it was a Booking fee instead – you’re money would not be returned as it was used as a “deposit” to book that rate. The cost can vary but if charged is usually between £100 and £300.

Valuation Fees

This is the fee charged by the lender for valuing your property. It can take three forms depending on your own personal requirements:-

Standard valuation – This is the most basic valuation provided and is for the sole use of the lender.
Homebuyers report – This is a more comprehensive survey, following a set format providing a brief overview of the condition of the property. This is instructed by yourself through the lender, and so creates a legal relationship between you and the surveyor, unlike with a standard valuation where no such relationship exists.
Full structural survey – As the name states this is the most comprehensive survey available. It is instructed by you in a similar fashion to a Homebuyers report, and hence has the same legal implications, but in addition to the Homebuyers report, it will detail any maintenance which is required on the property and is far mor detailed.

Upfront Service Charges (Flats/Apartments)

These are the charges made by the management company of flats/apartments for the maintenance and general up keep of all public areas such as corridors, gardens etc.

These are often paid in 6 monthly intervals and can come as quite a surprise when you first move in – so be warned – check what these fees are and when they are due.

Furniture

For most people, this is an expense which is spread out over a period of time and so doesn’t really enter into the immediate equation. However, for first time buyers with no furniture, this could well be a very large expense, and must be budgeted for.

Independent Whole of Market Mortgage Advice – The costs of moving home.

Independent Whole of Market Mortgage Advice –
The costs of moving home.