A Guide To The Typical Costs Invloved In Moving House

Stamp duty

The legal aspects of the purchase cannot be ignored - stamp duty comes into play one purchase prices for properties costing more than £125,000, with higher percentage charges on properties costing more than £250,000 and don't forget that you will have to pay solicitors fees. Stamp Duty Explained

Estate agents fee

Some estate agents may work for a flat fee, but the vast majority work on commission

Commission varies from one per cent to three per cent of the sale price of the property

If you have used one agent (a Sole agent), they get all the commission

If you have used joint sole agents they split the commission

If you have used multiple agents, whoever closed the deal gets the commission

Mortgage Indemnity Guarantee (MIG)

Watch out for mortgage Indemnity guarantee (MIG) charges. This is an insurance you may have to pay for which protects the lender - NOT you - in the event of you defaulting on your mortgage payments. This generally applies when you put down less than a 10% deposit.

Other costs

Don't forget to budget for other purchase costs, including the lender's valuation fee and your own survey, plus buildings and contents insurance. The estate agent will demand a fee for selling your home, which is typically around 2% but can vary.

The removals company will need to be paid, although you may decided to hire a van and do it yourself for a fraction of the removal company's fee, but for a whole lot more hassle. Finally, you'll probably also need money to pay for furniture and furnishings once you have moved in.

The total bill may run to thousands of pounds, depending largely on the property price and the size of your mortgage, and if you are selling a home through an estate agent.

The Lenders charges

As well as the interest charged on the money you borrow, there are other costs associated with getting a mortgage. Make sure you factor these in when working out what budget you will need.

The following fees may be charged by your lender:

Mortgage indemnity guarantee (MIG)
When a mortgage exceeds a certain percentage of the value of the property - usually 90 per cent although it could be higher - you may be required to pay a one-off fee. This is the MIG and it covers the lender if you default on your mortgage.

The fee varies from lender to lender but can add up to many thousands of pounds. The fee is normally paid on completion, although in some cases it can be added to your mortgage.

Valuation fee
The lender will instruct a surveyor to ensure your property represents adequate security for the mortgage you want - and in most cases it will send you the bill. The cost will depend on the value of your property, and is likely to be upwards of £200.

A Homebuyer’s Report, which will give you a guide to any problems there might be with your chosen property, usually costs upwards of £400. You may be able to cut costs by having your valuation and Homebuyer’s Report done at the same time, or by choosing a mortgage that comes with a free valuation.

Administration/booking/arrangement/completion fees
Your chosen lender may charge any combination of these fees.
Administration and booking fees tend to be charged upfront, when you first apply for the mortgage. They are usually somewhere between £100 and £400 each, but can be higher.

Some lenders only charge a booking fee on fixed-rate deals, others will charge one whatever deal you take. Administration charges can be attached to any type of loan.

Other fees are usually payable on completion and there is often the option to add them to the loan. These can also be several hundred pounds each.

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