There are a number of things to pay for when buying a house. The main ones are explained below:
This is the largest of the costs. This is a lump sum you pay towards the cost of your new home. You will need at least a 5% deposit, leaving you needing a 95% mortgage. Together you have the total value of the house. Saving more than the minimum of 5%, gives you a bigger choice of mortgages.
Stamp Duty or Land Taxes
You may be charged a tax when buying your house. This depends on where you live and how much you spend.
The tax is called:
- Stamp Duty in England
- Land Transaction Tax in Wales
- Land and Buildings Transaction Tax in Scotland.
Further details can be found on www.gov.uk/stamp-duty-land-tax
Mortgage and lender fees
There are several fees to be aware of:
- Mortgage account/booking fee: this is the amount we charge for setting up your mortgage.
- Product/arrangement fee: the amount we charge for the mortgage itself, which can be added to the to the mortgage amount in some cases
When you visit your new property, you will of course ask many questions. You can also pay for a survey. The Surveyor will inspect your property and tell you what they find.
If you want to find a surveyor near you visit the Royal Institute of Chartered Surveyors.
A solicitor or conveyancer can help you with the legal work needed to buy your home. They handle contracts and transfer the money to pay for your home. They will also do local searches for you.
To find a good one, ask your family and friends or check out one of the many comparison tools.
Remember you may need to think about:
- Moving costs
- Decorating and furnishing your new home
- Council tax
- Buildings and contents insurance.
- Utility bills, your gas, electricity and water.