How much does it cost to move house?
Moving house is never a cheap business – but it's a great feeling when everything's finally gone through! Once you’ve found the home of your dreams you’ll want to get things moving as quickly as possible. Here’s a list of what might cost you extra money along the way which you might not be aware of at the start of your house-buying journey.
How much is a house deposit?
A house deposit can range from 5% of the property's value to as much as you can afford. To help get a better mortgage rate the deposit is probably the biggest outlay you’ll have when purchasing a house as the higher the deposit, the more deals you will have access to. Find out more about whether buying is right for you straight away if the deposit is a worry.
How much is a mortgage arrangement fee?
A new mortgage arrangement fee can cost up to £2,000, and while some are fee-free, that advantage may be reduced through higher interest rates. You may not have to pay this up front – but if it’s added to the loan you’ll be paying interest on it over many years. There could also be an additional booking fee to secure certain mortgage deals.
How much is a valuation fee?
A valuation fee varies from around £200 to £500 for a basic valuation. The lender will need to value your new house to work out how much to lend you and to see whether it is worth the amount that you have offered to buy it for.
How much is a mortgage broker fee?
A mortgage broker fee can vary from £0 (as they will gain commission from the lender in lieu of payment) to up to £299 which is the Nottingham Mortgage Services fee but it could also be more with other providers. This money spent can be an investment that could save you thousand of pounds on your mortgage deal as the adviser is able to find a deal that's right for you. They also offer support during the time of applying for your mortgage and can explain aspects of mortgages that you may need explaining.
Nottingham Mortgage Services costs from £0 to £299 depending on whether you are already a member of Nottingham Building Society and will search over 60 lenders to find the right deal for you. You can read more about the fees here.
How much is life insurance?
Some lenders may insist on life insurance to ensure their risk is covered in the event of your death. But it can be a good idea in any case, to remove any worry for your family. A monthly fee shouldn’t be too expensive – around £15 per month for a non-smoker according to MoneySupermarket. The healthier and younger you are, the lower your premium should be as your premium will depend on your age, occupation. health history, the length of your policy and the amount of cover that you take out.
How much is Stamp Duty?
Stamp Duty Land Tax (SDLT) is organised by your solicitor and is a tax on land and property transactions and charges according to the purchase price. First time buyers do not need to pay this tax up to the value of £300,000 usually and from 8th July 2020 it was announced that there will be a Stamp Duty holiday until 31st March 2021 in order to help boost the economy and get people back on the property ladder after the Coronavirus pandemic. This will mean that any residential house purchase up to £500,000 will be free of Stamp Duty which on average is £4,500. Properties over the threshold of £500,000 will only be charged Stamp Duty on the amount over £500,000.
Usually anyone who is not a first time buyer will have to pay Stamp Duty on houses worth over £125,000.
How much are surveys?
Surveys often cost start from around £400 according to the Money Advice Service but could be more than this. It’s important to make sure your house is solid and safe, and a surveyors’ report, will usually do the trick. There’s a cheaper option for new build homes.
How much are solicitors’ fees?
Your solicitor makes sure everything goes according to plan and is legally correct through the conveyancing process. Making sure the contracts are in order, the sale is logged with the Land Registry and that everything is paid on time costs a total of between £850 and £1,500 according to the Home Owners Alliance. But, the costs could be less or more depending on the area of the country that you live in and other factors. This also covers accessing title deeds, money-laundering checks, local authority searches for planning applications lodged nearby, anti-fraud checks, and transfer of ownership.
How much are estate agency fees?
If you are also selling a house, factor in estate agency fees, often a percentage of the sale price. And an Energy Performance Certificate (EPC), which helps people compare the energy efficiency of your home. Some estate agents will include the price of your EPC into their fees and some will charge it on top and they usually start from around £40 but can cost over £100 according to USwitch.
How much are buildings and contents insurance?
Your home needs to be insured from the day you legally exchange contracts as it is from this point that the property becomes the risk of the buyer. Try The Nottingham and our insurance provider RSA for a no-obligation insurance quote.
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