Buying a home comes with extra costs and fees you need to be aware of – from securing your mortgage to booking the removal van.

Whether you’re a first-time buyer, downsizing or moving to your dream family home, it’s an exciting – and busy – time. It also comes with costs that could take you by surprise, so here’s a look at the ones you’re likely to come across and how we can help you through the journey.

Advice fee

We can help when you’re applying for your mortgage in principle, putting you in a strong position once an offer is accepted. The benefit of using a broker is that they have the expertise to ensure you’ve covered the required checks and paperwork related to buying your home and getting a mortgage.

We will let you know at the start of the process about our fees.

Booking and arrangement fees

These fees go to your mortgage lender. The booking/application fee is usually £100 to £300, but the arrangement fee can be much higher, anything from £0 to over £2,000 or a percentage of the loan. We can help you decide whether it’s better in the long term to opt for a mortgage with a slightly higher interest rate and lower arrangement fee, rather than a high arrangement fee and lower interest rate.

Valuation fee

Your mortgage lender will need to value the property themselves to make sure it’s not over- or under-priced. The valuation will also confirm the amount they’re willing to lend to you. Some lenders don’t charge a valuation fee, but if they do, it can cost upwards of £250 – depending on the size of the property and its value.

Surveyor’s fees

It’s important to know that the valuation fee doesn’t look at the structure of your new home, or any issues to do with maintenance and repair. We will be able to arrange an expert to conduct a thorough structural survey of the property. This will help you decide whether to negotiate the terms of the sale with the seller and their agent – before you exchange contracts. Survey fees can range from around £300 to over £1,500 - all depending on the level of service required and the size of the property.

Conveyancing costs

Electronic transfer fees

Insurance 

Removals

We will help take the stress out of home buying and can find you the competitive deals and savings available.

Don’t forget the stamp duty

As a buyer you will have to pay a stamp duty land tax, this depends on whether you’re a first-time buyer, where you live, and where the property is located within the UK. First-time buyers will pay no stamp duty land tax on properties up to £425,000.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17/03/2023.

Key Takeaways:

• There are additional costs you need to be aware of when buying your first home.
• Consider additional costs such as advice fees, booking and arrangement fees, valuation fees, surveyor’s fees, conveyancing fees, electronic transfer fees, insurance, removals and stamp duty.
• Always remembers additional fees when buying a home, save that little bit extra to account for them.
• YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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• Buying your first home can come with surprise costs you didn’t account for, so get ahead of the game.