The Cost of Moving Home

Buying a home comes with a range of additional costs and fees that you'll need to factor into your budget – from securing your mortgage to booking the removal van.

Whether you're a first-time buyer, downsizing, or moving into your dream family home, purchasing a property is an exciting milestone. However, alongside the excitement comes a number of expenses that can sometimes catch buyers by surprise.

Understanding these costs in advance can help you budget effectively and make your move as stress-free as possible. Here's a guide to some of the most common expenses you may encounter and how we can help you navigate the process.

Advice Fees

Applying for a mortgage can be complex, particularly if you're buying a home for the first time. We can help you secure an Agreement in Principle and guide you through the mortgage application process, ensuring all the necessary paperwork and affordability checks are completed correctly.

We'll always be transparent about any fees from the outset, so you'll know exactly what to expect before proceeding.

Booking and Arrangement Fees

Many mortgage lenders charge fees for setting up a mortgage.

A booking or application fee is typically between £100 and £300, while arrangement fees can range from £0 to more than £2,000, depending on the lender and mortgage product. Some lenders may also calculate the fee as a percentage of the loan amount.

We can help you compare mortgage products and determine whether a lower arrangement fee and slightly higher interest rate could work out more cost-effective than paying a larger upfront fee.

Valuation Fees

Before approving your mortgage, the lender will carry out a valuation of the property to confirm that it represents suitable security for the loan.

Some lenders offer free valuations, while others may charge a fee, often starting from around £250 depending on the property's value and size.

The valuation helps the lender determine how much they are prepared to lend but should not be confused with a property survey.

Surveyor's Fees

A lender's valuation is not designed to identify structural issues or maintenance concerns within the property.

For additional peace of mind, many buyers choose to arrange an independent survey. A qualified surveyor will assess the property's condition and highlight any potential defects or repairs that may require attention.

Survey costs can range from around £300 for a basic survey to more than £1,500 for a comprehensive structural survey, depending on the size, age, and complexity of the property.

A survey can also provide valuable information that may help you renegotiate the purchase price before exchanging contracts.

Conveyancing Costs

Conveyancing refers to the legal work involved in transferring ownership of a property from the seller to the buyer.

Your solicitor or licensed conveyancer will carry out searches, prepare legal documentation, manage contracts, and handle the transfer of funds.

Conveyancing fees typically range between £850 and £2,000, depending on the complexity of the transaction. Additional disbursements, such as local authority searches, can cost between £250 and £450.

Electronic Transfer Fees

On completion day, funds must be transferred securely between your lender, solicitor, and the seller's solicitor.

Most conveyancers charge an electronic transfer fee to cover this service, typically around £50.

Insurance

Before completion, your mortgage lender will require confirmation that suitable buildings insurance is in place.

Many homeowners also choose to take out contents insurance to protect their belongings. The cost of cover will vary depending on the property and level of protection required.

As part of our service, we can help you find suitable home insurance and ensure you have the right level of protection in place. We can also review your personal protection arrangements, including life insurance, to help ensure your mortgage could be repaid should the unexpected happen.

Removal Costs

Once the paperwork is complete and you've received the keys, it's time to move into your new home.

Removal costs vary depending on the volume of belongings being moved, the distance involved, and whether packing services are required. Professional removal companies can charge from around £300 upwards.

Obtaining several quotes can help you secure the best value for money.

Don't Forget Stamp Duty

Stamp Duty Land Tax (SDLT) is another important cost to consider when purchasing a property.

The amount payable depends on several factors, including the purchase price, whether you're a first-time buyer, and where the property is located within the UK.

As stamp duty rules and thresholds can change, it's important to seek up-to-date advice to understand exactly how much you may need to pay.

How We Can Help

Buying a home involves far more than simply saving for a deposit. With mortgage fees, legal costs, surveys, insurance, removals, and taxes to consider, it's important to budget carefully from the start.

We'll help take the stress out of the home-buying process by guiding you through every stage, helping you understand the costs involved, and finding competitive mortgage and protection solutions tailored to your circumstances.

Key Takeaways

• Buying a home involves a variety of costs beyond your deposit.

• Common expenses include mortgage fees, valuations, surveys, conveyancing, insurance, removals, and stamp duty.

• Understanding these costs early can help you budget more effectively and avoid unexpected surprises.

• Working with a mortgage adviser can help simplify the process and ensure you're financially prepared for your move.

• Setting aside additional funds for unexpected expenses can provide valuable peace of mind.

  
  

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.