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The Costs of Buying a Home in Cardiff

Mortgage Advice on Home Buying Costs in Cardiff

When it comes to purchasing a home, whether you’re a First Time Buyer in Cardiff or have been in this business before, the process can sometimes be stressful and rather costly. It starts to cost even more when you are buying and selling at the same time. Here is a helpful breakdown of some of the expenditures you will need to consider when exploring your avenues in buying a new home.

What are the Costs Involved in Buying a Home?

Estate agency fees

You should know that you only need to use the services of an estate agent if you are looking to sell a property. The price of these agents can vary, so you must make sure that you look for the best price and leading service before diving headfirst into anything. The cheapest estate agents tend to be online ones who don’t have to maintain the costs of running an office.

If you are not too worried about fees and you are interested in a more personalised and accessible service, you may have to pay an extra 1-2% of the price of your sale.

The fees are usually negotiable, especially when you’re in a “seller’s market”. What this means is that agents are fighting to get your instruction because of the lack of houses on the property market.

Property survey fees

If you are in the market for taking out a mortgage, then the lender needs to know whether the property is worth the amount that you’re paying for it. If you are lucky, your lender may offer you a free service, although they may not send you a copy of the report.

Occasionally the Lender may not offer a free valuation, in this case, you may need to pay a few hundred pounds for the costs of one. Roughly, you can expect to pay double the aforementioned amount if you would like to upgrade to a more in-depth Homebuyer’s Report. The top of the range survey is the most expensive option and you can expect to pay a four-figure sum for those types of survey.

If you want to find out what each different survey consists of, you can ask your Mortgage Advisor in Cardiff, who will advise you and help you make an informed choice. If the property is old or not in the best shape structurally, you should consider upgrading the property survey so you can receive more details of what may need repairing or replacing and when the time comes to move in.

If you are looking for an experienced and dedicated Mortgage Advisor in Cardiff that provides Expert Mortgage Advice, look no further! Get in touch for a free mortgage consultation.

We often find that the cost to upgrade a property survey is a lot less than what it would cost you for repairs over the years. So rather than buying a property without knowing what you’re getting, you could upgrade and end up saving yourself a lot of money in the future.

Mortgage arrangement fees

Generally speaking, the mortgages with the lowest interest rates tend to be accompanied by the highest fees. It can occasionally cost you a fair amount to set up mortgages, with the fee ranging anywhere from zero to a few thousand pounds. Your Mortgage Advisor in Cardiff will recommend the cheapest and most appropriate product to meet your personal circumstances, calculating the total amount to pay over the product term including all fees.

If you are borrowing a larger sum of money, it is very likely that you will want to keep the interest rate as low as you possibly can. However, some may prefer to borrow a smaller amount of money. If you are in this boat, then you should know it’s usually cheaper to take out a mortgage without fees as a rule.

Lender arrangement fees can often be added onto your mortgage total. If you proceed with the choice of adding a fee, then you will be charged interest on the fee which can start to add up over the course of the mortgage term.

Solicitor’s fees

You will require the services of a solicitor to carry out the legal aspects of your property purchase. They need to go over a lot of different things, such as; does the seller actually own the property; who is responsible for maintaining adjoining fences and walls, and whether anyone has lodged any plans (for example to build future links for transport). These things could affect your ability to sell the house on later down the line.

When comparing solicitor’s fees (which could range anywhere around a thousand pounds depending on various factors) you need to make sure you look at whether the quote includes VAT and local searches.

We would recommend that you to be careful when trying to find yourself a solicitor, as not all of them are “on panel” for all lenders. A dedicated Mortgage Advisor can help you decide upon and recommend a solicitor that is best-suited for your circumstances.

Stamp duty

Some purchases are subject to Stamp Duty which is a tax that you will pay to the government. The rules, on which purchases are captured by this tax, tend to change on a whim, so you should always check on the government website to see if this is payable.

Full details can be found here: https://www.gov.uk/stamp-duty-land-tax/

If Stamp Duty is due you will normally pay this at the time of completion, to your solicitor who will make the payment to the government on behalf of yourself.

Mortgage broker fees

Most mortgage brokers will charge you for their hard work, and that amount of the fee will often be a percentage of what the lender pays the broker for the work they do in their name. Most trusted mortgage brokers will only seek to charge you if they are successful in obtaining a formal mortgage offer for you.

Removal fees

Often, people tend to think that hiring a van and moving their furniture out themselves is easier than receiving help from a removal company. We can say for certain that from our experience, removal companies really are experts at manoeuvring furniture around. With that in mind, it is actually easier and less stressful to get them to help you out rather than trying to do it all yourself.

Cardiffmoneyman.com & Cardiffmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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