Buying a house is very expensive. I don’t just mean because of your mortgage payments either; there are so many things to pay for, many of which you probably don’t realise. It can be so exciting looking to buy your dream home, searching for San Clemente Homes for Sale with Ocean Views or homes with land for example, but there are costs involved that exceed the budget you might have originally considered. In order to get that dream home you’ve been eyeing up, you must pay the fees involved, so you need as much money as you can muster when buying a house. I guarantee that something will always pop up when you least expect it, whether it’s solicitors fees or a valuation fee. Read on to learn more about what you can expect to pay when buying a house:
Many people know that they must put money down for a deposit, but they don’t realise that there’s much, much more to think about. Although, this will be the vast majority of the money you put down. You need to put at least 5% of the total house price down in order to secure your house, but the more money you put down, the better. A 15% deposit would benefit you more in the long run, as you’ll get a better deal and lower payments.
The Mortgage Set Up Fee
This fee is usually anywhere from 99 to 250, but some don’t have to pay it. If you don’t have to pay this, you’ll usually have to pay an arrangement fee.
The arrangement fee can be up to 2000 or more. This should be paid upfront, or you can strike a deal to have it added on to the price of your mortgage. However, you should remember that you’ll be paying interest on this, so if you can pay it off sooner you’ll benefit more.
This could be 150 – 1500, depending on the level you choose and the property being valued/surveyed. Sometimes, you may want to pay for a full on investigation to make sure the place is suitable. In some cases, lenders will pay for this for you.
The Mortgage Account Fee
The mortgage account fee is said to cover your set up costs, maintenance, and closing down fee. It might be anywhere from 100 – 300.
The Higher Lending Charge
If you’re borrowing the majority of the cost of your mortgage then you could be charged a higher lending fee. This is for insurance, just incase something happens and you can’t pay off the mortgage. It’s usually 1.5% of your deposit, so it’ll be a few thousand pounds depending on a few different factors.
The Legal/Solicitor’s Fees
You’ll need to pay legal fees to solicitors depending on what work is carried out before you move in. This can be 500- 750 in some cases.
In the UK, we must pay for land and property transactions. This is called stamp duty. It’s up to 7% of the purchase price of your property.
Have you included your moving costs into the total money you’ll need to pay out? You may need to transport large objects like wardrobes and beds, estate agents in Chandlers Ford remind us.
You may not need to pay all of the above fees; it totally depends on your own personal situation. However, you never know what might pop up, so make sure you have enough cash!