How Easy Is it to Buy a New Home Without Worrying About Costs?

Whether you should buy your own home or rent is one of those age-old questions. Renting may seem like the better option. You pay less for a larger property in a better location, and won’t have any of the headaches when it comes to maintenance.

On the other hand, let’s show you how easy it is to buy a home that will bring you financial stability and be an asset that grows in value. There’s nothing like being the proud owner of your own home – the landlord – the king or queen of your castle.

Purchasing a house isn’t the same as when you play at an online casino UK to win instant jackpots. Property is a long-term investment and should grow in value, and you should recoup all your expenses over time. This advice comes from Kate Richards, a professional specializing in event marketing and public relations who is willing to share her unique insight into the industry.

Costs of Purchasing Your New Home

This article will give you some direction and understanding of all the extras involved so that you don’t worry about costs and budget for them.

You can split the expenses of owning property into two sections.

  • Upfront costs 
  • Ongoing costs

Upfront Costs When Purchasing Your New Home

Your Deposit

You’ll need a deposit to cover the difference between the mortgage and the cost of the property. Mortgage lenders don’t like to lend 100% of the property cost, and you’ll need a deposit of around 5% to 20% of the purchase price. Usually, a 10% deposit will work. Still, the more significant the deposit, the less your monthly payments will be, and you’ll be in a stronger position to negotiate interest rates and terms.

Stamp Duty

Stamp duty can be the highest extra cost when buying a home. The good news is that until 30 June 2021, there is a stamp duty holiday. After that, stamp duty will be the following:

  • England & Northern Ireland – from 8 July, properties up to £500 000 will be exempt.
  • Scotland – from 15 July, properties up to £250 000 are exempt.
  • Wales – from 27 July, properties up to £180 000 are exempt.

How much is stamp duty, and when do I have to pay it

Stamp duty calculator

Conveyancing Fees

Conveyancing fees are the legal expenses incurred when buying property, and there are two parts:

  • Legal fees – these are charges the conveyancer will charge.
  • Disbursements are costs for searches to ensure there are no legal issues with ownership and registering ownership change.

The amounts payable depend on your home’s value, whether it’s leasehold or freehold, and the number of searches required. You can find the amount of money online, but typically the costs will range between £850 and £1500 for conveyancing and £250 and £450 for disbursements.

How much conveyancing fees cost

Survey Costs

Surveys are not essential, but they’ll reassure you that the home you are purchasing is in good condition and there are no hidden issues. If the report shows some problems, you can use it to renegotiate the price. 

Survey types & survey costs

Mortgage Valuation Fees

The mortgage lender will usually arrange for a valuation to ensure that the property is worth the lending amount. Some lenders don’t charge a fee, while others will include it in the mortgage. 

Mortgage Arrangement Fees

These fees are sometimes charged by mortgage companies and are from a few hundred pounds up to 1% of the mortgage. Some lenders charge the fee upfront, while others will include it in the mortgage.

Mortgage Broker Fees

If you prefer working with a broker, shop around and find one who doesn’t charge fees and works with several mortgage lenders. 

Estate Agents Fees

These fees are one cost you don’t have to worry about as the seller handles this. But, when buying at an auction, there are extra administration fees that are payable.

Ongoing Costs With Your New Home

  • Mortgage repayments.
  • Maintenance and repairs – If you buy an older home, factor money into your budget for future repairs. 
  • Insurance – building and home contents insurance. 
  • Regular bills – council taxes, gas, water, and electricity.
  • Leaseholder costs when buying a leasehold property. 

A Final Word

You now have all the information needed to start your process of buying a new home. 

Before searching for a home:

  • Get approved for a mortgage amount.
  • Add up the expenses.

Never take the expense of services at face value and always get comparative quotes. A word of caution – the cheapest or most expensive may not be the best – follow up and get testimonials.

When searching for a home, find one with which you are comfortable. Then you can make an offer and hopefully, move in soon.

Author’s bio: Kate Richards is a highly devoted professional in marketing, specializing in event marketing, public relations, and the gambling industry. Kate is passionate about her work because she loves what she is doing. Kate has a steady source of motivation that drives her to do her best.