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The costs to consider
The costs of moving can soon add up. Here's a summary of all the initial costs to consider:
- Mortgage product fee
- Deposit
- Higher Lending Charge
- Estate Agents fee
- Stamp duty land tax
- Valuation fee
- Conveyancing fees
- Local authority searches
- Land registry fee
- Removal costs
- Discharge fee
Here's a budget checklist for you to keep track of the costs , including other outgoings once you have moved in to your new home. For example, it could be worth checking what council tax band your new home will be in advance.
We can help you make your budget go further – by arranging a Homemover Review.
We understand how difficult it can be to get on that first step of the property ladder. That’s why we offer a range of affordable mortgage solutions for first time buyers
Mortgage product fee
Some mortgage deals have a product fee associated with them. Many of our mortgage deals do not have an product fee but with those that do, it can be added to your mortgage amount but interest will be charged.
Take a look at our fixed rate and tracker rate mortgage deals
Your home may be repossessed if you do not keep up repayments on your mortgage
If you're buying a house for the first time you'll probably need a deposit. Here's some savings tips to get you started.
The amount of deposit you need to put down varies from lender to lender. It's usually between 5% and 10% of the property's value.
At Halifax we ask for a minimum 3% deposit – but if you can put down a bigger deposit you might find you are offered a better rate of interest. Plus you could avoid paying a higher lending charge.
While there are some lenders who don't ask for a deposit (often called 100% mortgages), the interest rate you will be charged can be higher, as lenders consider it a greater risk.
You normally pay this on exchange of contracts as part of your initial contribution to the purchase of your home.
Your home may be repossessed if you do not keep up repayments on your mortgage
If you're borrowing a high percentage of the value of the property, the lender may charge a fee to take out insurance cover. This protects them in case you can't pay back your mortgage and they have to sell your house at a loss.
The cost for this will depend on how much you borrow, and how much you're contributing as a deposit. Speak to one of our mortgage advisers for more details.
Estate Agency Fee
This only applies if you are selling your home – and varies depending on which estate agent you choose.
At Halifax Estate Agents it's a 'no fee- no sale' policy.
This is payable to the government on properties valued at £125,000 or more:
Residential property - Purchase Price | Rate of Stamp Duty Land Tax |
Up to £125,000 | 0% |
£125,001 - £250,000 | 1% |
£250,001 - £500,000 | 3% |
£500,001and over | 4% |
A valuation is arranged by the mortgage lender to find out if the property is worth the amount you want to borrow and is suitable to lend a mortgage on. You may also want a more detailed survey – a type of health check for properties.
Type of valuation/survey | Approximate costs |
Halifax Mortgage Valuation | £355 |
Level 2 Survey | £540 |
Level 3 – Building Survey and Valuation Report | Depends on your property |
The fees above are based on a purchase price/estimated value up to and including £200,000 and includes £100 administration fee.
Call us for further cost details - 08458 50 37 05.
Your home may be repossessed if you do not keep up repayments on your mortgage
Calls from BT landlines will cost a maximum of 4p per minute. The price of calls from other telephone companies will vary. We may monitor and record telephone calls to help us provide a higher level of service.
The call price is correct as at September 2007.
You will need to instruct a conveyancer or a solicitor to carry out all the legal work required when buying a property. Our Halifax Conveyancing Service can give you fixed-price quote online now.
Part of the conveyancing process when you buy a property, carried out by your conveyancer. It gives details of any matters when, from the local council's point of view, affect the property. It reveals any proposed changes to the local area, such as road improvements, and details any planning permission given for the property.
We add the costs of these searches in with our fixed-price quote as part of our conveyancing service.
Land registry fee- £150*
Your conveyancer pays this on your behalf to register your details in the Land Registry records once you've bought a property or changed your mortgage lender
*Approximate costs are for indicative purposes only and are base on a purchase price of £150,000 excluding VAT
Get an indication of how much it costs – use the Pickfords quick quote tool.
You have to pay this to some lenders for releasing their charge over a property if you sell the property and/or repay their mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage
Next Steps
Speak to one of our Mortgage Advisers...
We can call you
Call 08458 50 37 05 (Lines are open 8am to 8pm Mon to Fri, 9am to 4pm Sat).
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Calls from BT landlines will cost a maximum of 4p per minute and a 6p call set-up fee. The price of calls from other telephone companies will vary. The call price is correct at October 2007. We may monitor and record telephone calls to help us provide a higher level of service. |
