Purchasing a property will be one of the biggest financial commitments of your life, therefore you must know exactly what you’re expecting to pay for. All the additional costs can add up to a large lump sum and if you aren’t careful, you might be overpaying in some areas than you orginally thought.
In this article, we break down and look into the costs of buying a property in Newcastle, as well as the costs involved with property investment.
This article will be beneficial mostly to First Time Buyers in Newcastle as we have broken down each cost and given an estimated value to each. On the contrary, if you’re Moving Home in Newcastle, then this guide will act as a reminder of the cost involved so you can prepare accordingly.
Once you’ve had an offer accepted, your lender will carry out a valuation on the property, this assessment will consider multiple factors such as structural damage, property age, location. This is to make sure that your offer matches the ‘actual’ value of the property.
Valuations can vary some business models offer a free valuation whereas others may charge several hundred pounds. In some cases, a free valuation may be incorporated into another cost or a freebie for taking out a specific product.
They are also various types of valuations, some cost more than others depending on which one you need. For example, if you need a full building survey as you’re purchasing an older property, you may have to pay a lot more than someone who’s bought a new build.
You might be expecting a lender to charge you for taking out a mortgage with them. This is common with products with the cheapest rates. Not every mortgage comes with an arrangement fee, but depending on the product and lender you could be charged up to £2,000, although the average is about £1,000.
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.
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:
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.
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.
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
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.