Fees and costs explained

Before buying your home, you will have to take into account other costs that come with getting a mortgage and buying a place to live. You will also have to bear in mind that once you have moved in, there will be ongoing costs other than your mortgage.

Fees and costs - things to consider

The expense of buying your first home is not just about the price of the property. As a first time buyer it’s vital to bear in mind the other costs involved. For starters, there’s the deposit. For instance, if you’re buying a house for around £150,000 and want to put down a 10% deposit, that’s £15,000 you’ll need to have saved.

That’s not all. There are the other costs you usually come across when buying a property.  

  • Booking fee - This fee is charged to secure the interest rate of the mortgage. It is also known as the application fee. It usually costs around £100-£200 and is typically paid upfront, but we sometimes have offers where this fee is not charged.
  • Completion fee - This fee is charged to set-up your mortgage and can also be referred to as an arrangement fee. It usually costs from £500 to over £1,000 with the option of either paying it upfront or adding it to the mortgage. Again, we sometimes have offers where this fee is not charged.
  • Stamp duty - Stamp duty is a lump sum tax that anyone buying a property or land costing more than a set amount has to pay. The rate of this tax will vary depending on the value of your property.

    For more information visit the Government’s website at www.gov.uk where you can also find a calculator to help you work out the amount you would have to pay.
  • Valuation fee - The level of fee is dependent on the property’s value and can be anywhere from £150 up to £1,500. For certain mortgage products, we may not charge you for a standard valuation.
  • Survey fee - The survey could be a basic home condition survey, costing around £250; or a full structural survey upwards of £600. This fee is also dependent on the property’s value. 

    Never underestimate the value of a good detailed survey as it can save you money on repairs later down the line and can also be used to negotiate the price of your house.
  • Legal fees -  You will need a solicitor or licenced conveyancer to carry out all the legal work involved with buying a home. The fees are typically £500-£1,500 including VAT at 20%. They’ll also carry out local searches (which usually cost around £250-£300) to check if there are any local plans or issues that may stop you buying your first home.
  • Costs when owning a home

    Insurance

    Nearly all lenders require borrowers to have home insurance to protect your home. The costs of home insurance will depend on the type of home, its value and the area you live in. You can get a competitive home insurance quote from us here at the West Brom.

    For life insurance, this will reflect your age, activities, habits and dependents. 

    General upkeep of your home

    We can all hope for a trouble-free home but things will inevitably go wrong with it from time to time. General maintenance alone, even if it’s regular wear-and-tear over time, will need paying for. 

    Council tax

    The amount you pay is based on where you live and the valuation the property is in (apart from Northern Ireland where rates are set individually). You can check your council tax band by going to the Gov.uk website.

    Bills, bills and more bills

    There’s no getting away from the running costs of a home – the likes of water, gas and electricity and this is before you include other bills such as telephone, television or broadband.

     

    YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE