Buying your own home is no easy task, especially if you happen to have a family to prove for too. Unfortunately, it’s just not as simple as getting a mortgage, grabbing your keys, and unpacking your things. Buying your own home is guaranteed to cost more than you think, especially if you haven’t done much proper research. There are a lot of costs that you need to take into account, several of which are easily forgotten, so read through these carefully to make sure you can afford everything.
Mortgage Arrangement Fees
You could easily have to pay £2500 for these fees in total. An arrangement fee itself can be anywhere from £1000 to £2000. This could non-refundable, even if the sale falls through, so make sure to check.
Stamp Duty
If you buy a property for £125000 or more, then you will need to pay a government tax called stamp duty. Click here to use the stamp duty calculator and check how much money you will be paying.
Valuation Fee
A valuation fee tends to be between £250 and £300, but could easily go over £1000 depending on your property’s value. This fee is charged for mortgage lenders to assess the property and work out how much they are willing to lend you. This won’t identify all faults with the property, as it isn’t a full structural survey, but it should identify some necessary repairs.
Surveyor’s Fee
A full structural survey is necessary for you to know of any problems before you make your purchase. This can easily cost £700 each time. You will need to survey every property you are considering buying, so ensure you budget for a few, in case the first couple of properties survey have too much damage or just aren’t what you’re looking for.
Legal Fees
You will need all of your legal work carried out by a solicitor, which can cost anywhere from £500 to £1500, so be sure you don plenty of research to find the one most financially beneficial for you.
Insurance
You will need to protect your home from fires, floods, and any other possible damage. It would also be a good idea to take out contents insurance to protect your belongings too. There are some companies, such as Enness Mortgages, which will help you deal with this is the buying process.
Deposit
This is the amount of cash that you put towards to costs of your property. A general rule is that the more money you put down as a deposit, the high chance you’ll have of securing your mortgage. A deposit tends to be 5%-20% of the price of purchase.
Repairs & Decorating
If your surveyors highlighted any important repairs, those would need to be completed as soon as possible. You may also want to redecorate your interiors before moving in. This work can get quite pricey, so make sure you have a good look around to find the best deals for the work.
Make sure you properly budget for all of these costs before agreeing to anything, otherwise, you could wind up in a lot of debt, with a house that isn’t habitable.
XOXO
Debbie
This is a collaborative post.
