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The Costs of Buying a Home in Birmingham

How Much Does It Costs To Buy A House? | MoneymanTV

First Time Buyer Mortgage Advice in Birmingham

Prospective first-time buyers in Birmingham and clients looking at Moving Home in Birmingham, usually ask us “How much will this all cost?”. So here we listed a full list of the fees you can expect to pay when you are thinking about buying a new home in Birmingham (and when they become payable).

Estate Agency Fees

Estate agency fees only apply if you have a home to sell in Birmingham. With the rising of the online Estate Agent, the price to sell your home can be as low as £500 for a basic Rightmove listing. However, if you are looking for a more personalised local service and a dedicated sales negotiator, the fee will be in the region of 1-2%.

Valuation Fees

Your mortgage lender will have a requirement to have a valuation carried out on your chosen property. Valuation fees will be to ensure they are lending against adequate security. Prices can vary from nil (for a fundamental valuation with some lenders) up to several hundred pounds for a more detailed Home Buyers’ Report. A full Building Survey can be even more.

Having an element of choice is the key, in whether you wish to elect for a more detailed report or not. Your decision will likely depend upon the age and type of property you’re buying in Birmingham. Along with any fears/concerns you have about it.

Mortgage Arrangement Fees

Some mortgage products offer comparatively cheap rates. However, this benefit can get outweighed by an arrangement fee payable to the lender. Not every product has one, so the cost can be nil but could, for example, be £999 or even more depending upon the lender/product.

Sometimes these are to be paid upfront or elect to add these to your mortgage balance.  Although, you would then incur further interest charges. Being a Specialist Mortgage Broker in Birmingham,  we compare mortgage deals with all fees added to reach on a like for like basis.

Solicitor’s Fees

You’ll need to engage a solicitor’s services, the fees quoted by various firms can differ enormously. Estimation for a straightforward purchase with a local company is £600 for a low-value property.  You will need to give the property address, whether it’s leasehold or freehold. You will also need to provide the purchase price to obtain quotations.

The key points to cover when asking for a quote are:

  • Ensure the firm includes VAT
  • Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Local Authority Search Fees
  • Is your Solicitor on your mortgage lenders panel?

Stamp Duty

You’ll be required to pay this tax which the Solicitor collects on completion of the property purchase, in addition to your Solicitor’s fees and disbursements. Full details can be found here: https://www.gov.uk/stamp-duty-land-tax.

Broker Fees

Your Mortgage Broker in Birmingham will usually charge a fee for their service.  Broker fees will be disclosed upfront.  Please try to use a trusted company that charges on completion only. Avoid any application fees where your money will be at risk.

Removal Fees

The cost of moving your furniture can vary significantly. It will depend on the level of service you are searching for, and if you are quite happy to hire a van and roll your sleeves up, this can cost less than £200. On the other hand, if you are looking for a company that provides the full service, this can be £1,000 plus.

If you would like to discuss the costs of obtaining a mortgage in more detail, please don’t hesitate to Contact Us.

Moving Home Mortgage Advice in Birmingham

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UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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