Buying your first home can be an expensive experience. There are a lot of hidden costs that you may not realise when thinking about buying your first home and it is easy to focus your attention on saving money for your deposit and to forget about the rest of the necessary outgoings.
It is important to look at the whole picture and not just your deposit when working out your overall budget.
If you have paid over £125,000 for your home, it will attract stamp duty land tax, which increases with the value of the property. If a second property is being purchased, stamp duty is payable at a higher rate on any property which is over £40,000. Stamp duty must be paid no later than 30 days following completion, though solicitors will require the funds to be in their account prior to completion.
A stamp duty land tax calculator can be found here.
There are some unavoidable costs when applying for a mortgage. Before a lender will issue a mortgage offer, a valuation and/or survey must be carried out and paid for up-front. Some mortgage lenders also have up-front product fees, though some product fees may be added to the mortgage amount and paid over its term.
If you decide to instruct a financial advisor rather than your chosen bank directly, there could also be a fee.
Every property purchase requires the assistance of a solicitor. In addition to the costs which solicitors charge for legal work, there are a number of disbursements (payments to third parties such as local authority and other searches) involved.
When obtaining a quote for conveyancing, always ensure that you ask for the cost of all disbursements so that these can be accounted for from the outset with no hidden surprises. We provide a full comprehensive written quote at the beginning of the matter so you know the exact costs that you will pay.
Many people rent before buying their first home which means it’s important to take into account the costs of moving your furniture.
Once you own the house, you will no doubt want to put your own stamp on it. Some changes are more costly than others, and it would be a good idea to decide what needs doing to the house immediately to make it livable for you and prioritize other jobs according to your budget.
Finally, you will need to take in to account the cost of essential furniture items, for example to ensure that you at least have somewhere to sit and sleep.
Our conveyancing team do their absolute best to ensure the whole process is completed with the minimum of fuss and the maximum of care. We work closely with you at every stage to ensure your house move is a success.
For an instant quote click here or call 0800 160 10 10 to speak to us.