Written by: Rachel Geddes - Strategic Lender Relationships Director
Now could be a great time to start preparing to get on the property ladder, or to make the move to a new home. But before you do, it’s important to understand the costs involved so you’re not caught off guard later down the line.
Moving home in summer
Our research revealed that 72% of our customers moved to a new home, and 28% bought their first home in the summer of 2024, with June and July in particular being the busiest months for mortgage completions*.
It’s important to recognise that during this time, interest rates were higher, inflation was within the 2% remit, and the cost-of-living crisis was still at play. Yet despite all of this, there was still a demand for people to move home, and that it is still possible to achieve your homeownership goals, regardless of economic factors at play.
We could attribute June and July being the most popular months to various seasonal factors, such as families aiming to move during school holidays, or general increased buyer confidence during warmer months.
The cost of homebuying
Being armed with the right facts and figures will put you in the strongest position to buy or move home, hopefully avoiding any disappointment or delays in the process. So, first thing’s first, here’s the costs you need to consider and plan for:
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Legal fees
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Surveyor fees
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Mortgage broker fees
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Property searches
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Stamp Duty
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Removals company
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Storage fees
While not all fees are standard, and individual costs will depend on a range of factors like the type of property and what kind of buyer you are, these can soon add up.
Estimated unknown costs
Based on a homemover purchasing a property of £290,000, you can expect to pay the following additional costs:
| Legal fees | £2,000 |
| Surveyor costs | up to £1,360 |
| Property searches | £300 |
| Stamp Duty (if first time buyer) | £4,500 |
| Mortgage broker fee** | £500 |
| Total | £8,660 |
For those looking to buy a home in London and the South East, where average prices are around £506,706,these costs could be even more significant. Stamp Duty alone would cost £15,335, making it crucial for buyers to plan and budget accordingly.
Ben’s top tips for first time buyers
Ben Thompson, Deputy CEO of Mortgage Advice Bureau, shares his top financial tips for first time buyers.
1. Split the pots
Many first time buyers will have a savings pot dedicated for their deposit, but you could also consider making use of another high interest savings account to dedicate to these unknown costs.
2. Know what you’re dealing with
Speaking with a mortgage adviser early in the process could help you be more informed. Alternatively, tools like a Stamp Duty calculator can also help you estimate costs, giving you a clearer picture of what to expect. By planning for these costs, you can avoid surprises and focus on securing your dream home.
3. Don’t forget about moving day
Costs don't always stop with the legal and surveyor fees (or potential Stamp Duty). Make sure to budget for the moving day itself. Hiring a removal company, storage fees, or buying essentials for your new home can quickly add up, so factor them into your overall budget early on.
Get started
The earlier you get in touch with a mortgage adviser, the better. Not only can we help you understand all the costs that could be involved and help you plan for these, we can also use our expertise to alleviate any concerns and give reassurance and clarity around your finances. This all helps get you in the strongest position to buy your dream home and gives you peace of mind that everything is in order and budgeted for.
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*Mortgage Advice Bureau analysed data from June-September 2024, comprising a total of 42,798 customers.
**This is an average but the cost can vary depending on the loan amount.