GLP's Info Blog : What are the costs of buying your first home?
Our Greater London Properties Sales Team have put together a list of all the additional costs to consider when buying your first property..
When buying your house for the first time, it’s important to consider all the additional costs that will be involved in buying and running the property. These include:
Deposit:
This refers to the amount that you put towards the cost of purchasing your property. The larger your deposit, the more mortgage deals you can get access to. While more and more first-time buyers are now buying with smaller deposits thanks to 95% mortgages, it’s always a wise idea to save for a larger deposit wherever possible to improve your options and reduce the monthly payments. 40% tends to be the best deposit amount for getting the best mortgage deals.
Valuation Fee:
Your mortgage lender will charge a valuation fee to determine the value of the property and make a decision on how much they are prepared to lend to you. The cost can be between £150 and £1,500 depending on the value of the property. Some mortgage lenders offer this for free.
Survey Fees:
Once you have found a property you love, it’s a wise idea to have a survey carried out to check the condition. A chartered surveyor can be hired to carry out a homebuyer’s survey or full structural survey depending on the type, condition, and age of the property you want to buy.
Stamp Duty:
First-time buyers in the UK are not usually required to pay stamp duty up to £300,000. If you are purchasing a property worth over £300,000, use a stamp duty calculator to determine how much to save for.
Legal Fees:
You also need to budget to pay a solicitor or conveyancer to conduct all the legal work that is involved in buying a house, including carrying out local searches.
Broker Fees:
If you’re using a broker to find the right mortgage deal for you, they will usually charge a fee.
Electronic Transfer Fee:
This covers the lender’s cost of transferring the mortgage money to your solicitor, and usually costs around £40-50.
Insurance:
Most mortgage lenders require that buyers insure the mortgaged property. Along with getting insurance for the building itself you may also want to consider getting contents insurance, which will protect your belongings inside the home.
Whether you’ve been diligently saving for years, are getting help from your parents, buying your first house with your partner, or teaming up with a friend to get on the property ladder, understanding the process and costs involved in buying your first property is important. Need advice? You can get in touch with our Greater London Properties Team via email or phone and we will be happy to answer any questions that you might have about getting on the property ladder for the first time.
We hope you find this information helpful and informative.
Warm Regards
Central London Estate Agents