The Costs Involved in Buying a Property
We understand that the costs involved in buying property can be difficult, especially if you’re a first-time homeowner. Whilst the total cost of your home will most likely be the biggest part of the expense involved, it is worth understanding what other financial aspects are expected.
Unless you are buying your property outright with cash, you will be expected to pay a deposit followed by the amount you borrow from a lender for your mortgage. The more money you put down as part of your deposit, the better the interest rate tends to be for your mortgage. Whilst it may then seem tempting to put most of your savings down for your deposit, it’s worth noting that you may need additional money in case of emergency.
Some other costs you may encounter in the buying process are:
Legal fees: This is what you will pay your property solicitor or conveyancer to allow them to perform the legal admin work required for you to purchase your future home. To avoid unexpected fees, we recommend asking for estimated quotes beforehand. Legal fees tend to be priced anywhere between £700 and £1500 including 20% VAT.
Mortgage Product fees: This is an additional fee on top of your mortgage interest rate and can range in price anywhere from £0 to over £2,000.
Moving costs: Hiring a moving company can help to save a lot of time and stress. However, we recommend planning ahead with plenty of time as this can reduce the cost of hiring a moving van.
Refurbishing: Whilst the structure of your new home may tick all the boxes, the interior might not be exactly to your liking. Refurbishment costs can vary depending on whether you do a lot of the work yourself or hire external fitters and renovation teams.
Home insurance: Although it can sometimes seem expensive, insurance can help protect you should the worse happen. Home insurance is split into two separate categories: contents and buildings. You can usually buy them together or separately, depending on your preferences. This means that your building and all the contents inside are protected in the worst-case scenario.