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What do I need to pay for when buying a house?

Well generally the two most obvious are the deposit and the monthly mortgage repayment. Some mortgage provided are starting to lend up to 95% of the property value but deposits can vary between 5-20%.

After you have this part figured out in your budget, what else do you need to think about when buying a new home?

Solicitors fees:
You will most likely need a licensed conveyancer or solicitor to carry out all the legal work. You will need to pay for local searches too. The solicitor fees can range from £600 – £2000 (Inc. VAT) and the searches are usually around £300.

Mortgage arrangement fee:
A mortgage arrangement fee is the fee for the mortgage product and is sometimes known as the product or completion fee. The cost can vary from £0 to around £2000 depending on the mortgage product you choose.

The valuation fee:
A valuation fee is paid to the lender, so they can value the property and make sure it’s worth the amount you wish to borrow against the property on a mortgage.

A survey:
A RICS HomeBuyer Report / RICS Building Survey (Level 3) is different to a valuation. A survey will tell you the condition of the property in terms of defects, where as a valuation will tell the bank or lender the price value of the property for mortgage.

According to RICS those who don’t get a survey can often face immediate repair bills of over £5750+ when moving in. It’s always wiser to get a survey based on the condition of the property rather than the cost of the survey as it could help you re-negotiate the purchase price and save you a fortune in repairs in the future. Get an instant on screen quote now from us – Cosey Homes Chartered Surveyors (RICS regulated).

Buildings insurance:
If you’re getting a mortgage, your lender will insist you are insured against building damage and it will need to start from the date that the contracts are exchanged – which is before completion and before your move in date. On average it can range from approximately £120 -£300 per year depending on the property and the location.

Stamp duty tax:
This is the tax for buying a property. There is no fee for homes under £125,000 and since Nov 2017 first time buyers are exempt from stamp duty on properties up to £300,000.

Moving day costs:
Don’t forget to give yourself a budget for removal companies or van hire for your moving day. It can also be thirsty work so budget for soft drinks and something to eat or at least that first night take-away meal.

First few months:
It also a good idea to have some savings for initial decorating or new furniture and any unforeseen repairs.