It is known that buying a property can be one of the most significant financial commitments of your life which is why you must be aware of what you’re expecting to pay for. All the additional costs can accumulate to a large lump sum and if you aren’t careful, you could be overpaying in some areas than you initially thought.

Below we have provided a full breakdown and look into the costs of buying a property in Newcastle along with the costs involved with property investment.

Mortgage Advice in Newcastle for First Time Buyers

If you are a first time buyer in Newcastle and are looking for a simple breakdown of each cost and given estimated value to each. On the flip side, those who are looking to move home in Newcastle will benefit from this as it can be a great refresher to prepare accordingly.

The costs of buying a home in Newcastle

1. Valuation Fees

When you’ve had an offer accepted, your lender will perform a valuation on the property, this assessment will determine multiple factors like structural damage, property age, location etc. By doing this, they can ensure that your offer matches the ‘actual’ value of the property.

Valuations can differ with some business models offering a free valuation whereas others may charge hundreds of pounds. Sometimes, a free valuation may be included in another cost or a freebie for taking out a certain product.

As well as this, there is a large variety of valuations, some being more expensive depending on which one you need. For instance, a full building survey will be required for those purchasing an older property and will be more expensive than someone who’s bought a new build.

2. Mortgage Arrangement Fees

In some situations, a lender may charge you for taking out a mortgage with them. This is usually the case with products with the cheapest rates. Not all mortgages come with an arrangement fee, however, this comes down to the product and lender you could be charged up to £2,000.

Some applicants can choose between paying the arrangement fee upfront or adding them to the mortgage balance. If you choose to add them to your mortgage, you may incur further interest charges. As a Specialist Mortgage Broker in Newcastle, we can search 1000’s of mortgage products to find you the most suitable deal for your circumstances with minimal additional costs.

3. Solicitor’s Fees

You’ll need a solicitor to arrange the legal side of the mortgage process. The fees quoted by various firms may differ significantly. An estimated amount for a low-value property could set you back £600. You will provide the solicitor with the new property’s address, whether it’s leasehold or freehold. You’ll also need to provide the purchase price to obtain quotations. Additionally, make sure that:

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

4. Estate Agency Fees

Only when you decide to sell your property in Newcastle you’ll be faced with estate agent fees. Alongside property prices these fees are rising, you may expect to be paying between 1-2% of the property price.

If you are looking to sell your property, the lowest amount is usually £500. If you are looking for a more personalised service you may be expected to pay more.

5. Stamp Duty

Stamp duty is a tax that the solicitor will collect upon the competition of the property purchase, in addition to your solicitor’s fees and disbursements. More information regarding stamp duty can be found here.

6. Broker fees

A Mortgage Broker in Newcastle will usually charge a fee for their service. These fees will be discussed upfront so that you know what you’re paying for and how much your case is going to cost. We recommend trying to use a trusted pen and honest Mortgage Broker in Newcastle that charges upon completion only. Avoid any application fees where your money will be at risk.

Book your free appointment online to speak to a Mortgage Advisor in Newcastle today

7. Removal Fees

The cost of moving all of your household items to another property can vary depending on the service you want, how far you’re moving and how much stuff you have.

If you are happy to hire a van and transport your belongings to your new house by yourself, the service will cost significantly less. Whereas if you prefer to pay for the full service and get someone to pick up their belongings and help them move. Some local services may charge several hundred depending on circumstances.

Moving Home Mortgage Advice in Newcastle

Date Last Edited: April 14, 2023