You’ve been granted the mortgage in principle and you’ve found the perfect home. But before you start shopping for the perfect curtains or crockery set, it’s time to find out exactly how much a new home costs. Have a browse of our handy checklist to avoid any nasty financial surprises along the way.
This is the big one, the main financial commitment you will have to make on your home buying journey. The simple rule is, the more deposit you have, the better chances you’ll have of getting the mortgage you want so we would suggest at least 10% of the property amount.
Struggling to raise that desired amount? Did you know that Keepmoat properties are available to purchase with the Help to Buy scheme, perfect for those with a smaller deposit. Find out more here.
In a nutshell, stamp duty is a lump-sum tax that anybody buying a property or land costing more than a set amount has to pay. You only need to pay stamp duty if your new home is over £125,000 and the rate that you pay varies on the price of the property. So, for example, if your new home is £145,000, you’ll pay stamp duty on £20,000. If figures and percentages aren’t your forte, or you just need some more information, check out our blog that explains everything in more detail.
A valuation fee is charged by your mortgage lender who needs to value the home before they agree to lend you any money. Some will offer free valuations but set aside some savings in case you get charged. You can usually expect to pay around the £150-200 mark.
You’ve probably already budgeted for a solicitor to carry out the legal work involved when buying and selling your home. They’ll do all the jobs such as handling contracts, carrying out local council searches, dealing with the Land Registry and transferring the funds to pay for your property. Budget around £500-£1500, and don’t forget to add that all-important VAT at 20%!
Electronic Transfer Fee
This is a sneaky one – there’s a possibility that your lender will charge a fee for transferring the mortgage money from the lender to the solicitor. This can be set around £40 to £50 so make sure you have this squirreled away.
This is an important one – home insurance. It’s also incidentally one of the conditions your mortgage lender will set out before lending you the money. However, this does not mean you have to buy insurance from them. Have a little shop around and see if you can find something elsewhere. We highly recommend using comparison websites such as Go Compare or Compare the Market to find a great deal.
Moving the contents of your home doesn’t have to be costly, although hiring a professional removal company can definitely make the day significantly less stressful. However, it’s worth shopping around and comparing what you can get for your money. See if anybody you know has a van that could help on the day in return for limitless cups of tea and biscuits.
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