When it comes to buying a property, it’s not just the mortgage you need to worry about.
The following costs usually need to be paid before you can think “home, sweet home!”
Deposit - it is becoming increasingly rare to obtain 100% mortgages especially with lenders becoming more cautious. This means that some of the property purchase price needs to be contributed by you, the buyer. There is no set amount, but you are much more likely to get a better mortgage deal where you are paying 10% or more of the value.
Transfer of Money Fee - this is usually a flat fee charged by the lender when paying the seller of the property.
Leasehold charges - if you are buying a flat, expect to pay at least another £100 in costs, to cover the cost of checking the lease.
Conveyancer’s Fees - the fee you pay the solicitor or conveyancer for working for you. For a £150,000 property, expect to pay at least £325 + VAT. Shop around for quotes.
Stamp Duty Land Tax - this is the tax paid to the government and the biggest cost you will have to pay.
In some “disadvantaged areas” there is a nil charge for properties costing less than £150,000. Find out more about current Stamp Duty thresholds on the DirectGov website.
Land Registry Fee - payable to register the property in your name.
The following costs usually need to be paid before you can think “home, sweet home!”
Deposit - it is becoming increasingly rare to obtain 100% mortgages especially with lenders becoming more cautious. This means that some of the property purchase price needs to be contributed by you, the buyer. There is no set amount, but you are much more likely to get a better mortgage deal where you are paying 10% or more of the value.
Transfer of Money Fee - this is usually a flat fee charged by the lender when paying the seller of the property.
Leasehold charges - if you are buying a flat, expect to pay at least another £100 in costs, to cover the cost of checking the lease.
Conveyancer’s Fees - the fee you pay the solicitor or conveyancer for working for you. For a £150,000 property, expect to pay at least £325 + VAT. Shop around for quotes.
Stamp Duty Land Tax - this is the tax paid to the government and the biggest cost you will have to pay.
In some “disadvantaged areas” there is a nil charge for properties costing less than £150,000. Find out more about current Stamp Duty thresholds on the DirectGov website.
Land Registry Fee - payable to register the property in your name.
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