Purchasing a house and making it your new home is going to be a huge investment, possibly the biggest a person will make in their life. Trying to juggle the mortgage’s, any equity loans, rents, bills, moving charges and legal fees etc. is a daunting task that will be difficult. Below is a list of all the costs to bear in mind, however it is by no means a comprehensive list.
The deposit on your house. A percentage that leave the remaining cost of the property to be paid by the mortgage. The amount of deposit depends on the lender and if you are part of a scheme like the Help to Buy schemes.
- Mortgage Fees
The cost charged by a lender of setting up a mortgage.
- Equity Loan Fees
If you have a loan, there may well be set up charges for this as well as the mortgage.
- Estate Agent Fees
- Solicitor Fees
The charge to do all the legal paperwork regarding changing ownership through conveyance and all other legal requirements.
Of the three possible surveys, the basic survey is required by most mortgage lenders. You will have to pay the costs of getting the property valued at any level.
- Price of moving
The charges of a removal van and team to move your belongings from your current home to your new one.
If you are not happy with the inside of the property, you might wish to re-decorate.
The property may need some work doing to it before you are happy with it. These should all be made clear in a Homebuyer’s report survey.
- Stamp Duty Land Tax
A tax on changing ownership of a property.
- Payment Protection Insurance
This is often sold as an add-on by banks and you should check this if you do not want to pay it.
Either to the landlord if it is a rented property or to the housing association that deal with the Shared Ownership scheme, if you part own the property.
Unless you are on an interest only mortgage, the amount of money you borrowed will likely be paid back in instalments on top of the interest, usually monthly, so you need to take this into consideration.
- Mortgage Interest
A percentage of the total mortgage paid back in instalments, usually monthly.
- Equity Loan
Any loans will have to be paid back at some point, if you have any. The government schemes involve equity loans but they don’t have to be paid back for 5 years. See the Help to Buy Equity Loans page for further details.
- Equity Loan Interest
Any loans involved will have their own separate interest to the mortgage interest, so this is another monthly bill.
- Home Insurance
- Council tax
A tax paid to your local council, dependent on the value of the property and whichever council the property falls under. This pays for local services such as rubbish collection.
- Water Bills
- Gas Bills
- Broadband/Phone Bills
None of these are mandatory but modern life somewhat demands these things. Shopping around for the best deals can help to keep the monthly bills down if you can’t go without.
- TV License
Televisions are optional, but if you have one, you have to pay the annual TV license fee.
Again, this is not a comprehensive list, but still a thought provoking list to ponder and make sure you can afford the economical demands of moving and living.