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Buying a house: Don’t forget about these little known costs

keys attached to a keyring shaped like a house

When it comes to buying a house, you may think all you need to stump up is the deposit – wrong. Buying a house comes with a whole host of costs – some of which can come as quite a surprise when you eventually get round to buying your dream home.

Read on for some of the biggest costs that come with buying a home and how you can prepare to pay for them.

Solicitors fees

As soon as you find your dream home and secure your mortgage, the next thing you need to sort is a conveyancing solicitor.

A conveyancing solicitor will help you sort out all the legalities of buying a house and although the process will cost you around £1000-1500, it’s well worth the money to ensure there are no bumps in the road in securing your dream home. 

Surveys and searches 

When buying a home you need to ensure you carry out a survey and searches on the house you wish to buy. These will show you if there are any structural issues you need to be aware of before fully committing to buy. Searches should be included within your conveyancing fees, but a survey will set you back £300-800. 

Stamp duty 

First time buyers are exempt from stamp duty, but if any party you are buying with has owned property before, then stamp duty will be payable. 

Stamp duty is based on the value of the home you’re buying and so you could be looking at adding thousands to the cost of buying your new home. Your solicitor will be able to advise you on all of this. 

Moving costs

You’ve done the searches, completed the survey and secured your mortgage. Your offer has been accepted and you’ve exchanged contracts. The next thing is to sort out how you’ll move all your stuff into your new pad.

Moving costs can quickly add up – boxes, removal van hire etc don’t come cheap and depending on how far you’re moving you can expect to dish out £300-1000 for moving costs. 

Home and life insurance

If you were renting before you may only have had content insurance, if you indeed had insurance at all. Now that you’re a homeowner you’ll need building insurance to ensure your home is covered should it be damaged by flood, fire or other structural damage.

You’ll also need to think about life insurance too. If one of the mortgage payers dies during the term of the mortgage how will the other party cope with managing repayments? Life insurance gives you peace of mind that your family is covered should the worst happen.

Insurance costs depend on a huge number of factors but you can expect to pay anywhere from £40-100 a month. 

Mortgage fees 

Finally, be prepared for the mortgage fees. Some providers charge a flat fee to take out the mortgage which can often be added to the mortgage balance but it’s best to check first. You may also find your first payment is slightly higher than subsequent payments, especially if you move into your new property during the middle of the month. 

How to prepare for these additional moving costs

To prepare for these little known additional moving costs, it’s best to shop around for each to make sure you’re getting the very best price.

It’s also a really good idea to save as much as possible in the months leading up to the move. Many solicitors require a small percentage of the  fees up front, with the rest payable on completion, this gives you a bit of extra time to save. 

Cashback sites such as topcashback are a great idea when it comes to buying insurance products  as the cashback rates are usually really good. 

Avoiding putting these additional fees on a credit card will save you tons in interest so save as much as you can and factor in the additional costs before you start hunting for your dream home.

Good luck! 

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