Buying a new home can be costly. Knowing the approximate cost of purchasing a new home can help you make a right decision and also give you time to arrange for the money. You should consider the following costs when buying a new house.e
Major upfront costs
It comprises 15% to 20% of the expense of the home. The deposit is usually 5%. If the deposit is more, it is more likely that you will get a mortgage with a low-interest rate. You may have to pay stamp duty if the cost of your house is £ 125,001 or more. You need to pay the valuation charge which can be £150 to £1,500 depending on the value of the property. You should hire a surveyor before buying a house. The surveyor will tell you whether the house is in good condition or not. The cost may be £250 to £600. You need a lawyer to carry out your legal works related to the property. They will charge between £250 and £300. There is the estate agent’s fee for negotiating the agreement. It is 1% to 3% of the price of the property plus 20% VAT. The removal cost of moving from one house to another is £300 to £600.
Mortgage fee includes the booking fee, valuation fee, and arrangement fee. These may total up to £2,500. The booking fee may range from £99 – £250; mortgage valuation fee £150 or more; and arrangement fee of £2,000.
You have to take account costs of maintenance and repairs of your house. On average, new homeowners need to spend £5,750 on maintenance and repairs. You need to have insurance for your house to protect it from fire, flood and other disasters. The insurance amount depends on what the policy covers. You will have to pay the council tax, utility bills, broadband and TV bills, etc.
Besides these costs, you need to keep a budget aside for various hidden costs as well. All these estimations will help you have a good budget for your new home.