Moving House Costs
When you are moving house, it’s important to work out two sets of costs:-
- How much it will cost you to move – and what money you need to pay out, when
- Any additional costs you will incur on-going in your new home!
Whether you are about to rent or buy a new property, you will incur costs along the way and need to make sure you have the money ready to pay at the right time – a delay may mean you lose the property you hoped to move to!
Work out what money you have access to now:-
- Cash you have saved up.
- Money in an instant access bank/building society account.
- Money in savings or shares that you have to give notice to withdraw.
- Equity tied up in a home you own that you can release when you sell.
Work out then what monies you need (and when) to help you secure your new home
| Renting | Required when |
| Letting Agency fees/checks | You find a property you like |
| Deposit | Usually 4- 6 weeks of the rent, payable when you sign your contract |
| | |
| Buying | |
| Legal search fees | When an offer is accepted on a property |
| Mortgage fees | Can be payable when you apply and/or drawdown the mortgage |
| Surveying costs | Payable when you book or have received your survey report |
| Insurance | Require buildings insurance to be paid for prior to exchange |
| Deposit | To your legal company before you exchange contracts |
| Removal fees | Usually pay a deposit on booking, then final amount prior to move day |
| Final legal fees | Payable to your legal company prior to completing contracts |
| Stamp Duty Land Tax | When you complete your purchase |
| | |
| Selling | |
| Removal fees | Usually pay a deposit on booking, then final amount prior to move day |
| Mortgage repayment fees | Usually payable to the legal company to pass to the mortgage company on completion |
| Estate agent fees | Payable to the legal company to pass to the agent on completion |
| Final legal fees | Payable to the legal company out of funds from the sale of the property or prior to completing |
Deposits for a buying a home normally range from 5-10% of the new property’s value and stamp duty fees range from 1% of the property’s value between £125,000 to £249,999; 3% from £250,000 to £499,999 and 4% for anything above this figure.
It’s also worth putting some money aside for any changes to the property or new items that you need if you are renting.
Increased On-going Costs
There are lots of costs that you will either be incurring for the first time or if you are moving to a bigger home will increase.
Here are the main costs that you will incur and may increase for a larger home:-
- Council Tax bill
- House building (buying only) and contents insurance
- Car/vehicle insurance
- Utility bills
- Telecommunications bills
If you are buying of course, then one of the biggest increases can be your mortgage payments.
Worried it might all be getting too much? If you don’t think you can pay your rent or your mortgage bill, don’t stick your head in the sand or try to deal with it on your own.
Contact the Citizens Advice Bureau and/or visit Direct Gov and the Debt Advice Trust.
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Having trouble paying your mortgage? Then take a look at our article 'I Can't Pay my Mortgage'.
If you need to find a new mortgage or require independent mortgage or financial advice, contact us or tel 0845 838 1763 so we can put you in touch with independent financial advisors to help you make the right decision.
