How much does it cost to move house?

Whether you’re a first-time buyer or finding your next house, it’s always good to be aware of the additional costs that are associated with moving. 

It can even be a good idea to plan for this in advance so you can add these extra costs into your savings target.

 

The cost of moving house

 

1. The deposit

How much? On average, 10% of the property price

 

This will be the largest cost you will incur when buying a home. A deposit acts as a down-payment on the loan that your mortgage lender will give you. The larger the deposit, the less money you will have to loan off the bank — meaning the less interest you will have to pay on your mortgage.

In most cases, you will need around 10-15% of the price you’ll pay for your home, although it is sometimes possible to put down a 5% deposit.

 

Property Price	Percentage Deposit	Mortgage Deposit Amount
£200,000	5%	£10,000
£200,000	10%	£20,000
£200,000	15%	£30,000

 

2. Stamp duty

How much? Use the government’s Stamp Duty Calculator  to find out what you need to pay

 

Stamp duty is a tax on home buyers and it is a major cost to account for when buying a property. How much stamp duty you will pay depends on the property’s location, the price and whether or not it is your only property.

The home buyer is responsible for paying stamp duty, and usually your solicitor will complete the payment as part of the property purchase process.

Stamp duty is not paid on the first £125,000 of your purchase price. If you are buying an additional property, you will pay stamp duty of 3% at the lowest band. If you are a non-UK resident, you will also pay a 2% surcharge. If you are a first-time buyer, you will pay no tax if the purchase price is less than £500,000.

 

3. Conveyancing

How much? Between £850 to £1500, plus £250 to £450 for disbursements

 

Conveyancing is the legal process you go through to buy a property. As part of this you will have to pay legal fees and disbursements. Disbursements are local searches that a solicitor undertakes to flag up issues to be aware of, registering a change of ownership with the land registry.

Conveyancing costs will vary depending on the property’s value, and whether it is freehold or leasehold. 

 

4. Surveys

How much? Between £400 and £1500

 

A survey is a report that documents the condition of the property you would like to purchase. 

Depending on the property type, you can choose between:

• A Homebuyer’s Report — A top-level overview of the property, ideal for new-build homes.
• A Building Survey — Delves deeper into the structure of the property, so are perfect for older homes.

A survey is important as although it is an initial outlay of money, it can act as an assurance that the property you have chosen doesn’t harbour any serious issues. If the survey comes back having identified some problems, you can use this to negotiate the price, or to back out of the sale.

 

5.Mortgage valuation

How much? Can be free, generally between £200 to £300

 

Valuation surveys are for the lender to ensure that the property is worth what they have agreed to lend you. These fees will vary according to the value of the property and lenders will have their own fee scale. 

As some lenders won’t charge a valuation fee, it could be worthwhile to compare the fees of different mortgage lenders before you make your final decision.

 

6. Mortgage arrangement

How much? Costs up to 1% of the mortgage amount, depending on lender

 

Mortgage arrangement fees are similar to admin fees. Some lenders will charge these, while others won’t. Depending on the charges that your lender imposes, you could have to pay anything from a few hundred pounds up to 1% of the mortgage.

Some lenders require you to pay the fees up front which means you wont pay interest on the charge, however other lenders will be able to add the cost to the mortgage, which is ideal for those who don’t want another cost outlay.

 

7. Mortgage broker

How much? Can be free, or can cost up to 1% of your mortgage

 

Although some mortgage brokers will charge you, it is possible to find a fee-free mortgage broker who makes their money off commission from lenders instead.

You can compare mortgage brokers based on any specialist requirements you have, for example if you’re a first time buyer, or looking to buy in a competitive market. Search for a mortgage broker in your area with My Local Mortgage.

 

8. Buildings Insurance

How much? Varying, approx £120 per year

 

You will need to buy buildings insurance as soon as you exchange contracts to ensure that your property is sufficiently protected as soon as it comes into your possession. Although this isn’t a legal requirement, it is sensible.

Some conveyancers and lenders will insist that you have buildings insurance before you proceed. You will only need to purchase contents insurance at a later date, once your belongings have been moved in.

 

9. Removals

How much? Can be free or up to £2000

 

There are many ways to move house. Some people, if they have a small amount of belongings and not too far to travel, will do it themselves in a hired van or even their own car. 

Other people, who are moving further away, for example, may hire a removals service to look after this stressful part of the move. To save money, ensure that you do all the packing yourself, or ask friends and family to help out to ensure you don’t need to use a removals firm.

 

Start your home buying journey today

 

As well as your deposit, it’s important to also save up for the fees and extra costs associated with moving. This will help you to be completely financially prepared for your move — reducing stress, and allowing you to make the most of your deposit amount.