Buying a home is one of the most significant financial commitments you will make. As a leading whole-of-market mortgage broker based in Bournemouth, we offer expert mortgage advice to clients in Bournemouth, Poole, and Christchurch and beyond. One of the most crucial aspects of purchasing a property is understanding the various costs involved in arranging a mortgage. This guide will walk you through all the associated costs, ensuring you are well-prepared for your home buying journey.
- Stamp Duty
Stamp Duty Land Tax (SDLT) is a significant cost when purchasing a property. The amount you pay depends on the purchase price of the property and whether you’re a first-time buyer or purchasing an additional property.
Stamp Duty Rates (as of 2024):
Up to £250,000: 0% for first-time buyers; 2% for others
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Above £1.5 million: 12%
- Solicitors’ Fees
Legal work is essential in the property buying process. Solicitors’ fees cover tasks such as property searches, contract drafting, and the transfer of ownership.
Typical Solicitors’ Fees:
Conveyancing: £800 – £1,500 (including VAT)
Searches: £250 – £400
- Estate Agent Fees
If you’re selling a property, estate agent fees are another cost to consider. These fees are usually a percentage of the sale price.
Typical Estate Agent Fees:
High Street Agents: 1% – 3% of the sale price (plus VAT)
Online Agents: Flat fees ranging from £500 – £1,500
- Mortgage Lender Arrangement Fees
Most mortgage lenders charge an arrangement fee, which can either be paid upfront or added to your mortgage balance.
Typical Arrangement Fees:
Fixed Fee: £0 – £2,000
Percentage of the Loan: 0.5% – 1%
- Valuation and Survey Costs
Before granting a mortgage, lenders require a property valuation to ensure it is worth the amount you wish to borrow. Additionally, surveys can help identify any potential issues with the property.
Typical Valuation and Survey Costs:
Basic Valuation: £150 – £1,500 (depending on property value)
Homebuyer Report: £400 – £1,000
Full Structural Survey: £600 – £2,000
- Mortgage Broker Fees
As a whole-of-market mortgage broker, we provide access to a wide range of mortgage products, often securing better deals than going directly to lenders. Broker fees vary based on the complexity of your mortgage requirements.
Typical Mortgage Broker Fees:
Flat Fee: £500 – £1,000
Percentage of Loan: 0.3% – 1%
- Cost of Removals
Moving your belongings to your new home involves hiring a removal company. Costs can vary based on the volume of items and the distance of the move.
Typical Removal Costs:
Local Moves: £300 – £1,500
Long-Distance Moves: £1,000 – £3,000
Why Choose Us for Your Mortgage Needs?
At Key To Mortgages we specialise in providing personalized mortgage advice for clients in Bournemouth, Poole, Christchurch and beyond. Our whole-of-market approach ensures you have access to the best mortgage deals available. We guide you through every step of the process, from initial consultation to completion, ensuring transparency and support throughout.
Final Thoughts
Understanding the full range of costs involved in arranging a mortgage is essential for a smooth home buying experience. From stamp duty and solicitors’ fees to mortgage broker and removal costs, being prepared can help you budget effectively and avoid unexpected expenses.
For expert mortgage advice tailored to your needs in Bournemouth, Poole, Christchurch and beyond contact us today. We are here to help you navigate the mortgage process and secure the best deal for your dream home.
Contact Key To Mortgages for comprehensive mortgage advice and support. We are ready to assist you with all your mortgage needs.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We offer a free initial mortgage consultation. There may be a fee for arranging your mortgage and the precise amount will depend on your circumstances. We typically charge a fee of £595.00.