Careful budgeting will help you plan ahead and ensure you have enough money for all those costs involved in buying your own home. So it’s a good idea to make yourself a personal budget planner with a list of the expenses you expect to have.
As well as needing to pay a deposit on your new home, the costs you are likely to have to pay include legal fees, surveyor’s fees, mortgage fees, Stamp Duty Land Tax and moving costs.
Our Fee Saver mortgages have no Product fee and no valuation fee.
If you don’t want to choose a Fee Saver mortgage, it’s important to budget for fees:
• Mortgage Commitment Fee
Some mortgage products require a Mortgage Commitment Fee, which is charged when you apply for the mortgage and is not refundable.
• Product fee
Some mortgages require a Product fee, typically £499 or £999. This can usually be added to your total loan amount and repaid over the term of your mortgage.
• Valuation fee
The fee you pay will depend on the valuation or survey you choose and the value of your property. Typically, it can vary from £300 to £1,200. See our step later in this guide on choosing a survey, for more help.
• Legal fee
You will need to pay fees to your solicitor or conveyancer, as well as the cost of any land registration or search fees (these are included in the disbursements). Typically, you should budget around £700.
With the exception of the Mortgage Commitment Fee you can either pay your fees at the start of your mortgage or you can choose to add it to your loan amount. However, if you do add it to your loan, you need to be aware that you will pay interest on the amount for the term of your loan and therefore it will cost you more.
Remember to budget for the Stamp Duty Land Tax you will need to pay. Visit HM Revenue and Customs to see how much is due on your property purchase.