From estate-agent fees to removal firms, the additional costs of relocating now top lb10,000 – a figure that many homebuyers underestimate with a third.
New research by Mailbox Money discovered that home movers need lb10,132 in savings along with their deposit, with costs rising by 30% within the space of a decade. But many have budgeted too little to cover their costs.
Here, we explain the key additional costs you need to consider when moving home, and provide tips about how to stick to your budget.
The costs of moving house
A new study by Post Office Money outlines how buyers are unprepared for the spiralling costs of moving in one property to a different.
The research claims that although the overall cost of moving has grown by 30% previously 10 years, eight in 10 homebuyers underestimate how much they’ll need – plus some plan for less than half of the required amount.
The table below shows a breakdown from the five main additional costs of moving home.
Service and bills | Approximate cost |
Stamp duty | lb2,019 |
Estate-agent fees | lb4,815 |
House surveys | lb600 |
Conveyancing | lb1,619 |
Removals | lb1,079 |
Total price of moving | lb10,132 |
Source: Post Office Money
How to save money when moving home
These costs may appear a bit scary, but there are methods you can cut down on extras and stick to your budget.
As a place to begin, follow these tips:
Moving house checklist
One top of the above costs, it’s important to make sure that you move or settle any utility bills and insurance coverage before buying your new home.
From taking meter readings to having your mail redirected, there are lots of steps you can take to minimise the likelihood of a missed bill.
You will discover which administrative tasks you’ll have to take care of – and when you want to do them – by downloading our moving house checklist.
Mortgage tips for home movers
We’ve discussed additional costs, but how about the most expensive part of buying a home?
If you’re still planning the next move up the housing ladder, make certain you’re capable of secure the best deal whenever you arrived at move home.
- Weigh in the benefits and drawbacks of your current mortgage deal: When moving home, you’ll have to decide whether to take your mortgage with you (referred to as porting) or get a new one. Not all mortgages are portable, plus some come with high early repayment charges (ERCs) should you choose to pay off the mortgage during its fixed introductory term. Confer with your provider to go over your options.
- Get advice from the whole-of-market broker: There are gone 6,000 mortgages out there, so it’s not always clear where to find the best deal. A whole-of-market mortgage adviser can locate the best product for you and walk you through the applying process.
- Choose the best introductory term: The most of people remove fixed-rate mortgages, where the rate is set for a particular number of years (two or five being the most typical) before reverting towards the lender’s standard variable rate (SVR). Five-year fixes have become well-liked by buyers and remortgagers, but consider just how long you’re planning to live in the home, as numerous of those products have ERCs.
- Look beyond the initial rate: Some mortgages with attractive initial rates include high fees (of up to lb2,000), so that they may not be all they seem initially. All deals will include overall representative costs (APRCs), which show the speed of interest you’ll pay over the whole term of the loan, including any fees.
- Be proactive: If you’re getting a fixed-rate product to make the most of low initial rates, you’ll need to set an indication in your calendar to remortgage once the deal expires. Otherwise, you risk being transferred on to your lender’s standard variable rate, which could set you back a lot of money more each year. You can usually agree a new mortgage 6 months before the end of your fixed term.