There are various costs involved when buying a house and these costs do differ depending on if you are buying a home for you to live in or a buy-to-let, as well as if you are a first time buyer or moving home. It is important to fully understand the possible costs involved to ensure you have the funds available and you are not paying more than you need too. For this we will use the scenario that you are a First Time Buyer buying your first residential.
Here are some of the costs and fees to consider:
- Deposit - You will need a minimum of 5% deposit however please note that this can differ depending on your circumstances and some lenders may want more of a deposit from you.
- A Mortgage Product Fee - Sometimes the mortgage you apply for will have a fee. Sometimes you may not have to pay this upfront and it can be added onto your mortgage balance instead but you will need to look into this.
- Broker Fee - It is important to have a brokers help when applying for a mortgage especially if you are a first time buyer so give us a call to book in a free appointment with one of our advisers.
- Valuation Fee - Depending on the mortgage you choose the lender might not ask you to pay a valuation fee and this may be free but check this with them.
- Solicitors Fees - Solicitors fees can vary depending on a few factors such as the price of your new home so it is important to get quotes based on your circumstances.
- Survey Fees - Sometimes it is advisable to hire a surveyor to check the property for any damage or issues that could cost you money in the future such as damp issues. It is not a legal requirement and the valuation that the lender will do, might pick up on any issues the property may have however this is not always as in depth and guaranteed.
All of the above costs, can look overwhelming which is why us as brokers help with every one of those. We can provide you with quotes for solicitors and surveyors we recommend and work closely with from the local area. We also find the best mortgage deal for you and your circumstances ensuring you have the correct deposit. Although these are some of the main costs involved to purchasing a house, there is also costs involved to move such as:
- Van hire - This may not be needed in all cases however it may be worth looking into if you have a large amount of furniture to transport.
- Furnishings - It is important to make a list of the things you will need to buy straight away and the things you can buy overtime.
- Costs for your TV, broadband, phone
- Council Tax - You can check with the local authority what your council tax will be as this can differ significantly
- Ongoing Leasehold Fees - If you buy a property that is leasehold such as a flat, you will have ground rent and maintenance costs. Your solicitor will confirm these costs to you.
- Life Insurance - The cost of life insurance depends on many factors such as your health, age, cover needed, smoker statues and relatives health. We can help you with your life insurance free of charge and this is part of our broker fee.
- Buildings and Contents Insurance - Buildings and Contents will differ depending on the area, cover needed, any previous claims against the property etc however we can also look into this for you free of charge and include this within our broker fee.
If you are looking into buying your first home please give us a call and we can help you take the first step into moving. Our expert advisers are on hand to help you with any questions you might have to ensure your move is as smooth as possible and that you understand the whole process.