Calculating the true cost of buying a house

September 28, 2016 by Brendan

Advice & Tips

Buying a new property is likely to be the largest expense you will ever have during your lifetime, but have you accounted for all the hidden extras associated with it?

Most people save up a sufficient amount to pay removal costs, solicitors’ fees and other obvious costs, but often forget, or are unaware of, other expenses. The deposit is the main cost of buying a home, with interest rates getting cheaper the higher the deposit.

A valuation is crucial when you buy a property to ensure that it is free of damage or problems that could potentially cost you thousands to put right. However, many people don’t realise that you have to pay far more for a comprehensive valuation in order to reveal these faults. You may have to pay up to £1,500 for a full survey.

Mortgage arrangement fees are charged by the lender for providing you with the funds to buy the house. Although the fees can be added to the mortgage, the initial cost will soar once interest has been added, which is why it is preferable to select one with low mortgage arrangement fees and pay immediately. A mortgage adviser with CeMAP training will be able to help with this.

A Land Registry fee also has to be paid, to register the property with the Land Registry department. This cost is based on the property value and can be up to £910. Another cost often overlooked is that of a professional removal firm, which can amount to thousands of pounds.