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The Home-Buying Costs Everyone Overlooks 

It’s not just the mortgage deposit that you need to save up for when buying a home. There are many other extra costs that you need to budget for. Below are the big costs that everyone overlooks.

Mortgage valuation

Before getting approved for a mortgage, the mortgage lender will usually send someone out to inspect the property to ensure that it has been accurately valued. This is called a mortgage valuation. A mortgage valuation can cost anywhere between £150 and £800 (it usually costs more for bigger properties). Some mortgage lenders will throw in extra costs during the application process, however the mortgage valuation and the deposit tend to be the two biggest costs. 

Home survey

home survey is not compulsory, but is highly recommended when buying a property (especially an older one). It involves hiring a professional surveyor to inspect the condition of the home. A home survey can warn you of any hidden problems that the property may have, potentially preventing you from taking on a property that is expensive to maintain. A level 2 survey can cost between £400 and £1000 depending on the size of the property. Make sure to hire a reputable surveyor so that you know you’re getting a thorough home survey.

Conveyancer fees

A conveyancer is a solicitor that specialises in property law. They can handle all of these legal paperwork involved when buying a house. Buying a house without hiring a conveyancer is not recommended unless you have a lot of knowledge in property law. By shopping around for conveyancing solicitors, you can find the best service and the cheapest rates. Home conveyancing fees typically cost between £1000 and £1500. More complex property purchases may cost a bit more. 

Stamp duty

Stamp duty is a tax paid when buying a home in the UK. There are different rates in England, Scotland, Wales and Northern Ireland – the rate is typically 2% of a property’s value for cheaper homes, while more expensive homes can have a stamp duty rate of 12%. First-time buyers typically don’t have to pay stamp duty on a property less than £30,000. If you already own a property and you are buying a second property, you can expect to pay more stamp duty on this second property. A conveyancer can help you with the stamp duty payment process. 

Moving costs

Once you’ve bought your property, you should consider the cost of moving in. Most people will hire a moving company. This is likely to be necessary if you’ve got lots of belongings to transport. Moving company fees can cost anywhere between £200 and £1700 depending on how many items are being moved and the moving distance. If you haven’t got as many items to move, you may be able to get away with hiring a van or even using your car. If you rent a van, make sure to spend time comparing local van hire fees (in most cases, you will pay by hour).

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