There are a number of fees and additional costs involved in moving home. It is important to budget for these as you start your home buying process. These costs will vary depending on the location and size of the home, and possible contributions from the lender. It may be helpful to follow these guidelines.
One-Off Mortgage Related Fees (Common Estimates):
A booking fee is charged by some lenders for committing to a certain rate. It is most common on fixed or capped rate mortgages when they book, or lock in, the rate. (£50-300).
A broker fee is sometimes charged by a traditional broker for arranging the mortgage. For a £100,000 mortgage, the typical fee is up to 1%, or £1000. There is no broker fee, however, if you arrange your mortgage through moneygator.com.
A completion fee, or arranging fee, is charged by some lenders and varies depending on the mortgage options and the lender. (£200-400).
The lender's insurer can charge a Mortgage Indemnity Guarantee (MIG) fee if the loan amount is over 75% of the property valuation. Some lenders will pay this for you if the Loan-to-Value is less than 90%. The fee can be added to the mortgage or paid separately.
A valuation fee is required by the lender and depends on the value of the property. (£100-500).
Legal and Government Fees:
You need a solicitor to advise you when dealing with the seller. The solicitor will perform several tasks, including Local and Land Registry Searches, arranging for the payment of the Stamp duty and deposits, as well as the exchange of contracts. Legal fees vary depending on the value of the property. (£500-3000).
The stamp duty is a purchase tax levied by the Government and is only charged on purchase prices over £60,000.
1% of purchase price between £60,001 - £250,000
3% of purchase price between £250,001 - £500,000
4% of purchase price over £500,001
Other Fees and Costs:
Carry out a survey on the new property before you make your final commitment to the seller. These surveys are meant to uncover any unpleasant surprises regarding the condition of the property. There are different levels of detail you can specify from a simple, relatively inexpensive basic report to full structural surveys and specialist reports, which cover trees, electrical systems, damp, and other conditions.
A full structural survey will give you a detailed appraisal of the condition of the property, and should identify the need for any significant repairs. These are particularly useful if the property is more than 100 years old, has been poorly maintained, or has complex or unusual construction.
Moving cost: Consider carefully before you decide to move yourself. Make sure you understand fully how much you are moving, including furniture, kitchen ware, lamps, clothes, etc. - most people soon realise they own more than they thought! Renting a moving van may be necessary anyway. Get at least three quotes. Hiring a moving company is convenient, but also saves time (and your back!). Again, get at least three quotes and make sure you understand what is included, such as insurance, packing and boxes.
