Buying a home is one of the most exciting and most expensive things you will do in your life. Here is a handy guide of things you will need to factor in when you are buying a property.

Buying a Home

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Deposit

You will need a 5% deposit at the very least. The higher the deposit, the lower the interest rate on your mortgage.

Survey

It is well worth getting a full building survey done on the property. This will assess how structurally safe the building is, and it is a requirement of most mortgage lenders. The local area will be assessed during the house conveyancing.

Stamp Duty

If your new home costs more than £121,001, you will need to pay stamp duty. First-time buyers are exempt from this tax up to the first £300,000 up to £500,000. Different rules apply in different areas, so you need to check with the local authority.

Buying a Home

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The Mortgage

Mortgage lenders will usually want to conduct a valuation of the property to make sure that what they are lending you is what the property is worth. Mortgage arrangement fees are charged when you take out the mortgage. If you pay the fee upfront, you don’t pay interest on it – as you would if you just added the fee on to the mortgage. Similarly, mortgage broker fees can be paid at the time or added on to the total loan.

Conveyancing

Another cost to consider is the house conveyancing. The disbursements include local area searches (flooding, land registry and mining, etc), and the other fees will be for their work. Companies such as https://www.samconveyancing.co.uk/news/conveyancing/buying-a-house-4380 can explain the processes.

Removal

Removal companies are usually necessary when moving home. It is worth doing your research and getting lots of quotes.

Renovation

If the survey has brought issues to light, you may need to carry out repairs before you move in to the property.

Other Costs to Consider

If you’re moving to a leasehold property, you may have service charges and ground rent to factor in. Service charges may also apply if you buy a serviced property. You could also have to purchase a parking permit if your only option is to park on the street.