Moving home can really hurt your wallet. Not only are you paying humongous amounts for a deposit but additional fees such as stamp duty, valuations and other costs can stack up to crippling amounts.
We’re here to help. With a little planning, you can easily cut back costs and, in some cases, forget others entirely.
Surveyors fees; there’s a few things you can do here to make sure you save money for years to come. A surveyor will check out your property to make sure it’s all okay before you go ahead and buy but this can be pretty pricey, and it’s all too tempting to just go for the cheapest option and forget about it.
That could be a mistake, especially in cases where you’re planning to live in this property for a very long time; it’s an old property; or if the potential cost of repairs/renovations would be too high in the future.
The cheapest type of survey you can get is a standard mortgage valuation report, which some mortgage lenders even provide free however beware that the level of detail contained isn’t particularly comprehensive. The next level up from this is a homebuyer’s report, which involves a bit more of an extensive inspection,k with details about any immediate causes for concern.
The most extensive survey you can find is called a building or full structural survey. That costs around £600 and upwards, according to the Money Advice Service. That sounds like a lot now, but when you consider that having to unexpectedly redo all the plumbing or electrics, or have the roof re-tiled, can run into the thousands, it could be worth paying a little extra in advance to be prepared. A full buildings survey includes a comprehensive report full of details about immediate concerns and future potential problems.
A full structural survey can let you know before you purchase it whether the property you’re interested in will cost you the earth, or if it will really be your dream home from the day you move in to the day you find you next home. Weigh up your options now, and save money for years to come.
Removal fees are unavoidable in some cases and are the first additional cost you’ll think of when moving home. If you’ve got the means, hiring a van and doing the move yourself without the help of any third party companies can save you the most money. Be aware though the hidden costs of poxes, packing tape, bubble wrap, hiring help (if necessary) and the time, stress and hassle. If self-moving is not an option there are several ways to save money if you plan properly.
Try planning to move midweek. Not only will there be less traffic on the roads slowing you down, but some firms charge less at these times. Call around and check what the best price you can find is, asking them when they could give you the best price. Planning this in advance will make the moving process quicker and more cost efficient.
The more mortgage fees you can pay upfront, the more interest repayments you can forget about. It makes more sense to save for a little while longer to pay these fees, than add them to the mortgage. Adding costs to the mortgage adds to the amount of interest you will pay, making it more expensive in the long run.
If you’ve gone direct to a bank or lender, you might be guided to take out costly insurance policies. Don’t fall for it! Generally, banks charge much more for insurance than other insurers on the market. If insurance is important to you (we certainly believe it’s a must have) then look around for the best price.
Forget about your old energy and other bill costs. You’re moving to a new home, in a new area the costs will be different. Find the cheapest price for your new home in advance so you know what you’re going to be paying each month and can budget accordingly.
Its also really worth double checking and challenging you council tax band on your new home. According to Martin Lewis, up to 400,000 homes in England and Scotland could be in the wrong council tax band. You can check and challenge this for free, so it’s worth investigating.
In 2015, Gary Das Managing Director of Active Brokers moved home in Chelmsford, Essex. Read his experiences here.