The Costs of Buying a Home in Hull
Buying a Home Mortgage Advice in Hull
Local Expert Mortgage Broker | Hullmoneyman
Purchasing a home, whether you’re a First-Time Buyer or have been in this business before, can sometimes be stressful and expensive. It gets even more expensive when you are buying and selling at the same time. Here is a helpful breakdown of some of the expenditures you will need to consider when looking to move into your new home.
Estate Agency Fees
You should know that you only need to deal with an Estate Agent if you are looking to sell a property. The price of agents can vary, make sure that you try to find the best price and leading service before rushing into anything. The cheapest Agents tend to be online ones who don’t carry the expense of maintaining offices.
If you are not too sensitive to fees and you are interested in a more personalised local service, you may have to pay an extra 1-2% of your selling price.
The fees are usually negotiable, especially in a “seller’s market” – that means when agents are fighting to get your instruction because of lack of houses on the market.
Property Survey Fees
If you are thinking of taking out a mortgage, then the lender needs to know whether the property is worth what you’re paying for it. If you are lucky, your lender may offer this service for free, although they may not send you a copy of the report.
Sometimes the Lender may not offer a free valuation, in this case, you may need to pay a few hundred pounds for one. Roughly, you can expect to pay double that price if you would like to upgrade to a more in-depth Homebuyer’s Report. The top of the range survey is the most expensive option and you can expect to pay a four-figure sum for one of those.
If you want to find out what each different survey consists of, you can ask your Mortgage Advisor so you can make an informed choice. If the property is old or not in the best condition, you should consider upgrading the property survey so you can receive more details of what may need repairing or replacing and when or if you move in.
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We often find that the cost to upgrade a property survey is a fraction of what it would cost you for repairs over the years. So rather than buying a property blind, you could upgrade and end up saving yourself a fortune in the future.
Mortgage Arrangement Fees
By rule of thumb, the mortgages with the lowest interest rates tend to come with the highest fees. It can occasionally cost you to set up mortgages, the fee can range anywhere from zero to a few thousand pounds. Your Mortgage Advisor will recommend the cheapest and best product to meet your needs, calculating the total amount to pay over the product term including all fees.
If you are borrowing a larger sum of money, it is more likely that you will want to keep the interest rate as low as possible. However, you may want to borrow a smaller amount of money, if you are, then you should know it’s usually cheaper to take out a mortgage without fees as a rule.
Lender arrangement fees can often be added to your mortgage. If you elect to add a fee, then you will be charged interest on the fee which can start to add up over the term of the mortgage.
You will require a Solicitor to carry out the legal aspects of your purchase. They need to check lots of things, such as; does the seller actually own the property; who is responsible for maintaining adjoining fences, walls etc and whether anyone has lodged any plans (for example to build future transport links). These things could affect your ability to sell the house on in the future.
When comparing Solicitor’s fees (which could be anywhere within the region of a thousand pounds depending on various factors) you need to check whether the quote includes VAT and local searches.
We advise you to be careful when trying to find yourself a solicitor as not all of them are “on panel” for all Lenders. Again your Mortgage Advisor can help you decide upon and recommend a solicitor that is best-suited to you.
Some purchases are subject to Stamp Duty which is a tax payable to the Government. The rules, on which purchases are captured by this tax, tend to change from time to time, so you should check on the Government website to see if this is payable.
Full details can be found here: https://www.gov.uk/stamp-duty-land-tax/
If Stamp Duty is due you will normally pay this upon completion to your Solicitor who will make the payment to the Government on your behalf.
Mortgage Broker Fees
Most Mortgage Brokers will charge you for their work, the amount of the fee will often be a percentage of what the Lender pays the Broker for the work they do on their behalf. Most Brokers will only charge you if they are successful in obtaining a formal mortgage offer for you.
People sometimes think that hiring a van and moving their furniture out themselves is easier than getting help from a removal company. We can tell you, that in our experience, removal companies really are experts at manoeuvring furniture around therefore it is actually easier and less stressful to get them to help you out rather than doing it by yourself.
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