The Deposit 

The largest payment you’ll make when purchasing a new property is the deposit - the amount you put towards the overall cost of the house.

Usually, the more money you can put forward for a deposit, the lower the interest rate will be and the more likely you are to be accepted for a mortgage. 

The deposit usually lies between 5% and 20% of the property price - for example, if the property you’re purchasing is £200,000, then you’ll need a minimum deposit of £10,000.

Solicitor Fees/ Conveyancer Fees

Another cost you should consider when purchasing a house is solicitors fees. Conveyancing is the legal transfer of a property from the seller to the buyer, which is completed by a conveyancing solicitor. The two main stages of conveyancing incline the exchange of contracts and completion. 

The amount you pay a conveyancing solicitor can vary - but typically, legal fees when buying a home cost between £1000 and £2500, which includes VAT (at 20%). 

Conveyancers can also conduct local searches, which can set you back around £300. The purpose of these searches is to check whether there are any problems or local plans.

Stamp Duty

The amount that Stamp Duty costs can depend on the amount you pay for the property, and when you purchase it and if your a first time buyer. 

If you’re purchasing a second home, then you’ll be required to pay an additional 3% on SDLT on properties costing over £40,000 (depending on the relevant rate at the time). This amount will increase if you go above £250,000, however speak to your solicitor to confirm the amount you pay. 

Stamp Duty Land Tax applies to both leasehold and freehold properties, regardless of whether you’re using a mortgage to fund the property purchase or you’re paying the amount in full.

Home Buyers Survey/Full Structural Costs

You may want to get an additional surveyor before committing to a purchase. A home buyers Survey or full Structural can help you understand whether there are any issues with the property. 

The cost of a survey can vary from £250 to over £700 - typically depending on the condition and size of the property. Although you may be reluctant to pay for these checks, it can save you time and money on repairs in the long term.

Insurance

Although this isn’t always essential, most lenders require you to take out insurance in order to protect your home from damage - whether it be fire, floods, or anything else. 

You may also wish to opt for protection for your belongings or finances too - as well as life insurance. Life insurance is a must-have, as it enables your loved ones to pay off your mortgage in the case of your death.

The amount you pay per month for life insurance can vary depending on your insurance provider. Click here to learn more about your insurance options when purchasing a property.

Valuation Fee

Your mortgage lender will always wish to assess the value of the property you’re purchasing in order to determine how much they’re going to lend you. Depending on the mortgage deal you choose, the lender may cover the cost of this. 

However, in some cases, you’ll be required to pay the valuation fee yourself. This can cost anything from £0 to over £500, typically depending on the property’s value. 

It’s important to note that the valuation fee does not include a full survey - so don’t expect it to identify any repairs or maintenance that may be required further down the line.

Mortgage Payments

If you’re paying for your property with a mortgage, then you should, of course, factor in your monthly mortgage payments. Your monthly mortgage payments depend entirely on the cost of your property, your mortgage term, and the interest rate. 

As well as this, you may be required to pay a mortgage booking fee, which can cost anything from £90 to over £200. 

Mortgage Adviser Fees

If you opt for a mortgage broker, you’ll usually be expected to pay for their services, including the mortgage arrangement fees. The cost of these services can vary depending on who you choose as your mortgage broker. 

At LTC Mortgages, we can provide you with all the help, advice and support you need on your property purchase journey, and find you the best mortgage deals. Contact our friendly team today to discuss your options.