April 16, 2010
How Much More Than A Mortgage Does It Cost To Buy A Home?
If you think that buying a home is as easy as signing a mortgage application then you are wrong – if you are going to be able to afford to get onto and move up the housing ladder you are going to need some expert help.
Research from Unbiased.co.uk says a quarter of house-buyers are clueless as to how much buying their home will really cost them – one in ten think house-buying extras will only cost up to £1,000 when in reality conveyancing fees alone could cost this much.
In order to cover the additional costs of house-buying, over two fifths of house-buyers say they will dive into their savings and nearly a fifth plan to add these costs on to their mortgage. These are both viable options but are they right for you?
It costs as much as £1000 for a survey on the property, another £1000 for a basic solicitor's service. Then it could be £300 for a local search, as well as a hefty stamp duty bill of maybe £2,000 or £3,000 at least . And then there are extra costs of moving, like removals and traveling – it all adds up.
Karen Barrett, chief executive of Unbiased.co.uk says: "Buying a home is a huge financial commitment, and it is crucial for consumers to factor in all the additional costs involved in order to then calculate which price bracket they can afford.
"Consumers should ensure they seek advice from a whole of market mortgage adviser so they are fully aware of all the costs involved in house-buying before they find themselves out of pocket. Especially if they decide to add these extra costs onto their mortgage – as the added interest will be on top of the value of your property – pushing the cost up significantly."
SOURCE: Unbiased.co.uk, 07/04/10
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