Plan your finances for moving home

It pays to be prepared, and we’ve put together a list of financial factors you will need to consider as you plan for your upcoming move.

Between deposits, fees, and unexpected costs, it's easy to lose track of your budget. However, with careful planning and a realistic approach, you can navigate your move smoothly without breaking the bank.

Here's how to get your finances in order to ensure a stress-free relocation.

Create a comprehensive budget

Start by listing all the anticipated expenses associated with your move. This includes:

Buying costs:

• Deposit
  
  
• Stamp duty (if applicable)
  
  
• Mortgage fees (arrangement, valuation, legal)
  
  
• Solicitor fees
  
  
• Buildings insurance

Moving costs:

• Removal company
  
  
• Packing materials (consider free options like used boxes)
  
  
• Renting a van (if moving yourself)

Selling costs:

• Estate agent’s fees
  
  
• Energy Performance Certificate (EPC)

Factor in ongoing costs

Don't forget about the additional expenses that come with a new home:

• Utilities (electricity, gas, water, internet)
  
  
• Council tax
  
  
• Potential renovations or repairs
  
  
• Increased commuting costs (if applicable)

Save diligently

Moving requires a significant upfront investment. Start saving as early as possible to ensure you have enough for the deposit, fees, and initial moving costs. Consider cutting back on non-essential spending and explore ways to generate extra income through a side hustle or a second job.

Explore lending schemes

There are a number of government initiatives and schemes designed to help ease some affordability concerns when buying a property. Look into the Shared Ownership scheme, the Mortgage Guarantee scheme, Right to Buy (if you live in a council-owned property), and the First Homes scheme.

Avoid making major financial changes

Stability is key during the mortgage application process. Try to avoid changing jobs, taking on new debts, or applying for multiple lines of credit in the months leading up to your move. This can negatively impact your credit score and make it harder to secure a more competitive mortgage rate.

Plan for the unexpected

Set aside an emergency fund to cover any unforeseen costs that may arise during the move. Unexpected repairs in the new home or damaged belongings during transit can quickly derail your budget.

Celebrate affordably

Moving doesn't have to mean an extravagant housewarming party. Hosting a casual gathering with close friends and family is a great way to celebrate your new home without breaking the bank.

By following these tips and planning meticulously, you can make your move a financially sound and stress-free experience. Remember, a little planning goes a long way in ensuring a smooth transition into your new home.