Home buying costs
Before you start picking curtains, or that 65" TV, it’s worth finding out exactly how much buying a new home costs. It’s better to know now than have any surprises along the way.
You’ll need to pay for some of your home with a deposit. And the simple rule here is the bigger the better. The more you can put down the less you’ll have to borrow.
With the Help to Buy ISA you can get help saving for your deposit. For every £200 you save the Government will give you a £50 bonus. Find out more about the Help to Buy ISA.
If your home is under £300,000 and you are a first time buyer, you won’t pay any Stamp Duty at all in England.
Your mortgage lender will need to value the home for themselves before they lend you any money. Some will offer free valuations, others will charge. Expect to pay around the £150–£200 mark.
You’ll need a solicitor to carry out the legal work when buying and selling your home. They’ll handle contracts, give legal advice, carry out local council searches, deal with the Land Registry and transfer the funds to pay for your property. Budget between £500–£1500 and don’t forget to add VAT at 20%.
Electronic transfer fee
Your lender will probably charge a fee for transferring the mortgage money from the lender to the solicitor. This usually costs around £40–£50.
Don’t forget to budget for home insurance. Having adequate cover is one of the conditions your mortgage lender will set out before lending you the money. But this doesn’t mean you have to buy insurance from them. Shop around and often you can get a better deal when you combine your buildings and contents insurance into one policy.
How much or how little you spend on removals is up to you. A professional removals service definitely makes moving-in day run smoother, but can cost anything from £300–£2000. So it’s worth shopping around and comparing what you get for your money. Hiring a van and doing it yourself is the cheaper option if you don’t mind a bit of hard work. Remember to recruit family and friends to help if you can.