When you’re looking to move house, it’s always worth bearing in mind that there’s more to the moving costs than just the removal firm!
In your calls with your adviser, you’ll talk through the ‘hidden fees’ of moving house, including the fees incurred in selling your house through an estate agent.
Below is an outline of some of the potentially hidden costs of moving.
The house deposit – this will likely be your biggest outlay in the process. Deposits typically range from 5% of the purchase price all the way up to as much as you can afford. The larger the deposit the more mortgage deals you’ll have access to and the better / lower the likely interest rate becomes. Our advisers work on a whole of the market basis (currently with access to over 100 lenders) so they’re able to find the best deal for the deposit that you have.
The mortgage arrangement fee – some lenders can charge up to £2000, with £995 / £999 being a common figure charged. Often Lenders will have a fee free option, but that isn’t necessarily better as it usually carries a higher rate of interest. When finding the best deal for you, your adviser will look at the total amount to pay and see which deal works best for you. This may mean that the arrangement fee is added to the mortgage loan or it can be paid up front. Your adviser will discuss all of the options with you to ensure that you have the best deal for your circumstances.
The mortgage booking fee – very similar to an Arrangement Fee, it can be charged by a Lender and is usually payable upon application, as opposed to something which could be added. This could be instead of an Arrangement Fee or in addition to it.
The valuation / survey fee – some lenders will offer free valuations on certain deals, whereas others deals or Lenders may charge between £200 and £500 for a basic valuation, depending upon the purchase price / valuation. A basic / standard valuation is simply to ensure you are not being charged more for a property than it is worth. For extra ‘peace of mind’ you could consider a Homebuyers Survey – this is more in depth and you will receive a copy of the report, but it costs more to carry out, although it does include the ‘standard valuation’ aspect too. The third level, which is not too common is a ‘Full Structural Survey’. This, for example, is something you may consider if planning on buying a derelict property as a project. The nature and type of survey you need is something that your adviser will discuss with you.
The mortgage broker fee – our fees start from £149, with a basic residential remortgage / purchase fee typically being £299. Your adviser will always talk you through what fee will be payable before they submit a mortgage application for you. We do not charge a fee for mortgage advice, but for making the application on your behalf, which is not payable until you have your formal mortgage offer. Other brokers may have different fee structures / ways of charging but be wary of any percentage based charge – even a small sounding 0.5% charge on the ‘average’ house price could see a fee of over £1000.
Insurance – in many cases Buildings insurance needs to be in place for Completion to take place or, in some cases, for Exchange of Contracts. This is typically a mandatory requirement of any Lender providing you with a mortgage. Often you’ll combine Contents with the Buildings insurance to fully protect the home. Nowadays, personal protection such as life cover, critical illness and income protection covers are seldom mandatory as part of having a mortgage, although it would be very prudent to consider all of these. A Lender can repossess your home if you’re unable to pay your mortgage, so they are protected via the property itself and having insisted on Buildings cover as part of the mortgage offer, they know in a worse case scenario the property could be rebuilt for re-sale purposes if necessary. Your adviser will offer to look into suitable insurance for you as you progress through the mortgage process, ensuring that you’re adequately covered should the worst happen.
Our advisers have access to the latest technology so are able to search for the most appropriate cover for you. We use insurers who are 5* Defaqto rated, ensuring that you have the best cover possible.
Stamp Duty – Read more about the costs of Stamp Duty in this article.
Solicitors Fees – your solicitor is an integral part of the house moving process. They make sure that everything goes to plan and is legally correct through the conveyancing process. As the solicitor’s fees are dependent on a large range of factors, your adviser will discuss what the fees are likely to be during your mortgage process. Apart from the Solicitor’s actual fee for their services, you will be charged for associated costs; local searches, CHAPs Fees and other disbursements. They’ll usually include any Stamp Duty payment due within their final invoice. We work closely with local solicitors and so are able to recommend a solicitor if you do not already have one.
Estate Agency Fees – estate agency fees are paid in connection with selling a home, not buying one. Often based as a percentage of the sale price of the property you’re selling, but could be a set fee that’s agreed in advance of the sale. Your adviser can recommend a local estate agent if you require one.
Energy Performance Certificate (EPC) – when selling a property, you need to have an EPC, which sets out the ‘green’ credentials of your home. Some estate agents include this within their agreed fee, whereas others will charge it in addition. Typically, cost could range between £50 & £100.
Early Repayment Charges (ERC) – if you are currently tied into a Lender with your current mortgage, you might be charged an ERC if you take out a new mortgage or deal and pay off your current one – even if staying with the same Lender. ERCs are often quoted as a percentage of the mortgage repaid and may depend upon how far into the deal you are. Many current mortgage deals, but not all, have a ‘Portability’ option. This allows you to transfer (port) your mortgage from one property to another and avoids the ERC. However, this may not be feasible for a number of reasons and your adviser will discuss this and the implications with you.
This overview has been collated as an example of a typical list of moving costs, however each case will be different. This is something that your adviser will discuss with you in the mortgage process so that you are unlikely to come across any unexpected fees.