Warning: Cannot modify header information - headers already sent by (output started at /homepages/29/d786878964/htdocs/clickandbuilds/Openbrix/wp-blog-header.php:9) in /homepages/29/d786878964/htdocs/clickandbuilds/Openbrix/wp-content/plugins/all-in-one-video-gallery/public/public.php on line 105 First Home – OpenBrix
The ten fees you will have to pay when buying your first home
When it comes to buying your first home, it is so much more than stumping up the cash needed to make a bid. Unfortunately, the paperwork and fees associated with getting a foot on the property ladder are vast, and not everyone is aware of them. It is important to ensure that you can afford each of these bills before making a move on your dream home. Otherwise, you could find yourself in trouble further down the line.
So, let’s look at the top ten fees you need to consider before buying your first home.
Mortgage arrangement fee
The arrangement fee can also be known as a product fee,
booking fee, or application fee. You will have to pay this as a crucial part of your overall
mortgage cost. You will usually be given an option to either pay this fee upfront or add it to
the mortgage. This can be up to £2,500.
Mortgage booking fee
Some lenders will charge you for a separate booking fee which
secures some deal for you, whether that be a fixed rate, discount, or tracker. This is
Many lenders charge another fee to check precisely what the property in
question is worth for their security. This will usually be £250.
Some people like to pay for a new survey of the property which provides you
with a more thorough inspection, spotting anything from structural damage to damp. This
will usually cost between £400 and £700.
Unfortunately, when buying a property, you will have to pay a stamp duty tax
to the government based on how much you paid. This is 0% for houses under the £125,000
bracket, 2% for those between £125,000 and £250,000, 5% for those between £250,000 and
£925,000, and so on.
This is a fee you pay your solicitor to cover the legal work associated
with house buying. These fees usually come to between £1,000 and £1,500.
The Land Registry is in charge of registering properties under the new
owners’ name, a fee you will have to pay. This can be around a few hundred pounds.
Yet another tax that needs paying when you get your foot on the property
ladder. How much exactly depends on which band your property falls into.
Furniture and moving
Remember to factor in the costs that are associated with moving
house. You will likely need to hire a moving company to shift your furniture from one
property to the other. You may also need to invest in some new furniture in general.
When moving into a new place, you will likely want to make some changes. Whether this comes in the form of knocking a wall or two down, a new paint job, or even an
extension, it costs money, and you need to budget for it. Making improvements to a property can boost its value when you come around to selling it.