What Expenses do London First-Time Buyers Face?

January 19, 2018 9:34 am Published by

There are a variety of costs that a first-time buyer will have to meet, despite the abolishment of stamp duty on the first £300,000 of properties worth up to £500,000. Of course, saving up for the deposit will be at the top of your requirements. This will have to be at least 5% of the property value, but the more you save, the better your mortgage rate. Before you can stump up for a deposit, you’ll need to factor in the following charges.

In the majority of cases where a mortgage is required, you will have to pay a mortgage arrangement and a valuation fee. The mortgage arrangement fee can be paid up-front or added to the mortgage amount, which you will then be charged interest on, thus increasing the overall cost. Lenders will check that you can actually afford the monthly repayments and will require evidence of your salary and your outgoings.

If you’re buying a new build, the property will have the benefit of a building warranty. However, if you’re not buying a new build, it’s extremely important to acquire a survey of the property. That being so, a surveyors fee may be an additional expense. There may be alternative, cheaper options to hiring a separate surveyor, so make sure you check with the lender’s valuer.

You will need to have buildings insurance as a condition of your mortgage, and it would also be ideal to have contents insurance. Sometimes lenders charge their customers a fee if they take out a buildings insurance with a different company, however, this is only a small fee in the grand scheme of things.

Don’t forget that you’ll have to furnish your new home. If you already have furniture, you may need to fork out for a removal firm to pack and relocate it. Of course, it may be cheaper to hire a van and do the removal work yourself.

Make sure you carry out some thorough research and planning if you’re considering buying a first-home. For comprehensive independent whole of market mortgage broker advice, you can contact John Demetriou based in Southgate, whom we’d happily recommend. Please contact him via email at john@jdfs.co.uk or call him on 020 892 02830.

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This post was written by Dennis Adam

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