How Much Does It Actually Cost to Buy a Home?

Buying a home is a shared goal unifying adults across the world. For many who do not have the financial backing of wealthy parents or the ridiculous income of top-level sportsmen, getting together the money is a huge test of management and patience. Times when banks lent you money simply because they could, may be long gone and government-imposed taxation will have you paying for things that you weren’t sure even existed. The age of hidden fees is nigh and nowhere is this felt more than in the housing market.

The Deposit

The deposit is usually the most transparent aspect of house pricing and will therefore likely consume a large portion of your savings. A deposit is a fraction of the house value given to the mortgage lender in exchange for the full home price and the promise that you will pay it back.

In the past, mortgage lenders had an unprecedented belief in the borrowers and regularly handed out 100% mortgages, something unheard of in this age. The deposit aims to cover between 5% and 10% of the total house value with the size of the deposit deciding how much interest rate is paid on the property. Interest rates change often but generally rest between 1.5% and 3% based on the mortgage term. Knowing the impact of the size of your deposit on interest rates alongside how large of a deposit you actually need for the property is important in building a financial plan.

Conveyancing

Conveyancing is – in essence – the legal fees required as a part of moving the property and will mostly be paid toward solicitors and conveyancers in order to legally give you the ownership of the property while also doing research into any local issues or legal problems associated with the property. Conveyancing usually costs between £850 - £1,500 but may vary based on the individual circumstances of the property.

Surveying

Carrying out a survey for the property is absolutely vital during the buying process. Unless you’re a professional yourself, you may miss some potential issues within the property that will cause you to trouble further down the line. Hiring a professional surveyor helps you find out more about your property while also giving you the peace of mind that nothing is majorly wrong. You may find yourself paying a couple of hundred pounds for their services but are generally very much worth the cost.

Ensuring that you are aware of all the potential costs that may be incurred during the house purchasing procedure will help you gauge the overall price point of purchasing a home leading you to better prepare for it ahead of time.

Contact Hadleigh Estate Agents for Properties to Buy & Rent

If you’re looking for a property to buy or rent in Birmingham, then please get in touch with our property experts. With over 40 years of experience, we are a market leader in the Harborne and Edgbaston areas.

Our friendly, experienced, and qualified team of estate and letting agents like to take the time to understand your needs to find out exactly what you’re looking for in a purchase or sale.

Get in touch with us on 0121 427 1213 or you can send us an email here.