Mortgage advice in Bishops Stortford:

Additional Costs of Moving

No matter how much you think you can afford to spend, mortgage lenders will lend you only what they are confident you will be able to pay back. Remember...

Taking on more than you can manage now may lead to trouble and worries later - especially if interest rates rise. Your home may be at risk if you cannot meet your mortgage payments.

Monthly bills are likely to increase if you move to a larger property.

As well as the property price, you will need to budget for additional costs such as stamp duty, surveys, solicitors' fees, removals. Below we provide an overview of potential purchase costs - many of which vary according to purchase price.

When you Buy ...

You will normally need a deposit of at least 5% of the purchase price, although this may vary according to your circumstances. If your deposit is less than 25% of the value of the property you may have to pay an additional High Percentage Loan Fee. This insures the lender against any potential losses if you don't pay the mortgage and they have to sell your house.

Some lenders charge an Arrangement Fee. The amount of the arrangement fee varies according to the lender, and sometimes according to the type of mortgage. It can range from £95 to over £300.

Very occasionally mortgages incur a Booking Fee. This charge may be applicable for a special rate, such as a discounted or capped rate. The amount of the booking fee will depend upon the type of mortgage and the lender.

Legal Fees vary according to where you live, the solicitor or licensed conveyancer that you use, and on the amount of work involved. For a standard conveyance of a property of £100,000, costs may range from £220 outside London to over £500 in London. These figures are approximate. Please contact a solicitor or licensed conveyancer for an accurate quotation.

Stamp Duty (paid via the solicitor) is a Government tax based on a percentage of the property price.

Property Price                                                                               Stamp Duty

£0 - £120,000                                                                                 0%

£120,000 - £250,000                                                                    1%

£250,000 - £500,000                                                                    3%

£500,000 +                                                                                     4%

Land Registry fees (paid via the solicitor) depend upon the property price. The current charges for 'Scale 1 Transfers of Registered Land for Value' are:

Property Price                                                                               Fee

£0 - £40,000                                                                                   £40

£40,001 - £60,000                                                                        £70

£60,001 - £80,000                                                                        £100

£80,001 - £100,000                                                                      £150

£100,001 - £200,000                                                                    £200

£200,001 - £500,000                                                                    £300

£500,001 - £1,000,000                                                                £500

£1,000,000 - £5,000,000                                                            £800

£5,000,001 - and over                                                                 £1200

Local search fees (paid via the solicitor) depend upon the property price, ranging from £40 for a property of £25,000 to £79 for a property of £200,000.

The cost of a survey depends on the property price, and on the type of survey you choose. As a rough guide, for a property costing less than £100,000, you can expect to pay:

Homebuyer's Survey                                                                                   £250

Full Structural Survey                                                                               £500

These figures are approximate. Please contact a surveyor for an accurate quotation.

Removal Expenses will depend upon where you live, how much furniture you have, how far you are going, and the service you opt for. You can expect to pay anything from £180 to move from a one-bedroom ground floor flat, to over £500 to move from a detached house. A long distance, two-day move may cost an extra £150-£200 or more.

These figures are approximate. Please contact a removal company for an accurate quotation.

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