Moving costs.

Whether you're buying a new property, moving your current mortgage to us from another lender, or borrowing more money, it’s important to know how much it’s all going to cost. We usually expect you to be able to provide a deposit but there will be other costs too, especially if you're moving home. You need to think about whether you can afford all these costs.


Deposit

We'll only lend you a certain percentage of either the purchase price or the property valuation, whichever is lower. So you'll need to use some of your own money to buy the property – a deposit.

We usually ask for at least a 5% deposit from your own money. However, if you can pay more, you can often get a cheaper mortgage product.


Other costs

There are other costs in buying a property and taking out a mortgage. Here are some typical ones that apply to most buyers.

Cost

Summary

Valuation of property

Your mortgage adviser will discuss valuation schemes and fees with you when you make your full application. The fee depends on the property value and the type of valuation you choose.

Conveyancing fees

Charged by a conveyancer for doing the basic legal work connected with buying your property. Fees can vary and are often based on the purchase price plus other costs.

Stamp Duty Land Tax/Land and Buildings Transaction Tax (properties in Scotland)

This is a government tax charged on land and property transactions in the UK. The tax is charged at different rates and has different limits for different types of property and values of transaction.

The tax rate and payment limits can also vary according to whether the property is used for residential or non-residential purposes, and whether it is freehold or leasehold. For the most up-to-date limits please visitwww.gov.uk/stamp-duty-land-tax/overview
or for properties in Scotland www.revenue.scot/land-buildings-transaction-tax/guidance/calculating-tax-rates-and-bands

This tax is an expensive extra cost that you should take into account when thinking about buying a property.

Land Registry fees

The Land Registry will charge for any searches of the property register the conveyancer asks for. It also charges for registering you as the owner and us as the lender. You must pay both these costs.

Local authority search fees

The local authority will charge for answering your conveyancer’s questions about the property you want to buy, such as whether the local authority maintains the roads adjoining the property or whether you'll be responsible for this.

Other relevant property searches, for example mining or environmental searches

Sometimes your conveyancer will have to carry out other searches because of where your property is. These may be environmental searches to check if certain industrial processes are carried out in the area or if the property is built on land that may have been contaminated because of the way it has been used in the past. Mining searches ask for records of any mining work that may affect the property. The organisations that answer these questions will charge for this, and you'll have to pay these costs.

Valuation of property


Summary

Your mortgage adviser will discuss valuation schemes and fees with you when you make your full application. The fee depends on the property value and the type of valuation you choose.

Conveyancing fees


Summary

Charged by a conveyancer for doing the basic legal work connected with buying your property. Fees can vary and are often based on the purchase price plus other costs.

Stamp Duty Land Tax/Land and Buildings Transaction Tax (properties in Scotland)


Summary

This is a government tax charged on land and property transactions in the UK. The tax is charged at different rates and has different limits for different types of property and values of transaction.

The tax rate and payment limits can also vary according to whether the property is used for residential or non-residential purposes, and whether it is freehold or leasehold. For the most up-to-date limits please visitwww.gov.uk/stamp-duty-land-tax/overview
or for properties in Scotland www.revenue.scot/land-buildings-transaction-tax/guidance/calculating-tax-rates-and-bands

This tax is an expensive extra cost that you should take into account when thinking about buying a property.

Land Registry fees


Summary

The Land Registry will charge for any searches of the property register the conveyancer asks for. It also charges for registering you as the owner and us as the lender. You must pay both these costs.

Local authority search fees


Summary

The local authority will charge for answering your conveyancer’s questions about the property you want to buy, such as whether the local authority maintains the roads adjoining the property or whether you'll be responsible for this.

Other relevant property searches, for example mining or environmental searches


Summary

Sometimes your conveyancer will have to carry out other searches because of where your property is. These may be environmental searches to check if certain industrial processes are carried out in the area or if the property is built on land that may have been contaminated because of the way it has been used in the past. Mining searches ask for records of any mining work that may affect the property. The organisations that answer these questions will charge for this, and you'll have to pay these costs.

This video explains the changes which took place in December 2014 for properties bought in England, Wales and Northern Ireland. For properties in Scotland, please visit http://www.gov.scot/Topics/Government/Finance/scottishapproach/lbtt

There are often unexpected costs in buying a property, so it is a good idea to have a reserve fund to cover them.

There could be other charges and standard costs which you may have to pay during the course of setting up your mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.