How to get out of 5 year fixed mortgage

Leaving a fixed term mortgage early is certainly possible, but not always advisable. When you sign up for a fixed rate mortgage, you’re agreeing to the term, and exiting early can lead to some hefty fines. If the cost outweighs the potential savings, you could be better waiting out the end of your agreement.

These fines are simply early repayment charges, and they are likely to be payable on any mortgage, but always check the fine print. If you think you can get a better deal elsewhere, or if you want to repay your mortgage early, read on to learn how to get out of a 5-year fixed mortgage.

What is a fixed rate mortgage?

A fixed rate mortgage gives you some stability for the agreed term. A standard variable mortgage will mean that the interest rate is set by your bank, and heavily influenced by the Bank of England Base Rate. With a fixed rate mortgage, you’ll know exactly what your mortgage interest rate will be for the lifetime of the mortgage agreement.

This can work to your advantage, particularly if interest rates rise. When interest rates increase, those on variable rate mortgages will see their monthly repayments go up. A fixed rate mortgage protects you from price increases. However, if interest rates fall, you won’t be able to take advantage of lower monthly repayments.

Some people prefer fixed rate mortgages because it gives them some stability. They know exactly what they will pay every month. But with a fixed rate mortgage comes a fixed term. This means that you agree to keep the mortgage product for an agreed term. 2-year and 5-year fixed term mortgages are the most common.

Can you break a fixed term mortgage contract?

You can get out of a fixed term mortgage contract, but this will come with a fee attached. If you want to sell your home or remortgage to get a better rate, you will essentially be paying back your mortgage early.

Nearly all mortgages will have an early repayment fee attached. The early repayment fee covers the lost interest payments that banks suffer when borrowers repay their mortgage early. So you can get out of a fixed term mortgage, but you can expect to pay an early repayment fee so it’s important to understand the costs.

With a £200,000 mortgage remaining, you could face an early repayment charge of up to £10,000. This could wipe out any potential savings, so it’s important to consider the full cost of leaving your agreement early.

How much does it cost to break a fixed mortgage?

The early repayment fee will vary depending on the lender and the type of mortgage. The fee is typically a percentage of the remaining balance of the mortgage, usually around 1-5%.

If this amount of more that you could save by switching to another product, you might be better staying put. If you need to move house, you might have to accept that an early repayment fee is unavoidable. Always check the fine print, as a small number of lenders don’t have early repayment charges, so you would be able to leave your agreement without consequence.

What happens if I leave a fixed rate mortgage early?

The only consequence of leaving a fixed rate mortgage early is that you will need to pay the early repayment charges. You won’t damage your credit score or face any negative consequences from your lender or future lenders.

You must weigh up the full cost of leaving your fixed rate mortgage early, particularly if you are remortgaging. You may face early repayment fees on top of arrangement fees for your new mortgage. Unless you are switching to a much better mortgage deal, you might be better staying put until the end of your agreement.

At the end of your fixed rate mortgage agreement, you will very likely be moved to your lender’s standard variable rate. You will then be free to remortgage, sell the property or increase your monthly payments to pay off the mortgage sooner.

Can you sell a house with a fixed mortgage?

Yes, it is possible to sell a property with a fixed rate mortgage in place, but it will come with a cost. Once the home sells, the early repayment charge will be deducted from the proceeds of the sale.

You don’t need to let the buyer know that you are on a fixed price mortgage, but if you are thinking about purchasing another property, you might need to consider what you can afford once you factor in the cost of paying the ERC.

If you’re shopping around for a better deal, we can put you in contact with the brokers who can help secure the best possible deal. We’ll help you calculate your early repayment charges and determine if getting out of your fixed term mortgage early will be beneficial.

How Loan to Value (LTV) Ratio Affects Your Mortgage

Those applying for a mortgage for the first time will soon discover the abbreviation LTV. This stands for loan to value, and it is a calculation of the lending risk to financial institutions. When an individual applies for a mortgage, they will be asked to provide a deposit. This means that they won’t be applying to borrow the full value of the property, but instead, they are applying to borrow a percentage of the value of the property.

What is the LTV ratio and why is it important to lenders?

This percentage is known as the loan to value, or LTV, and it is used by lenders to determine the amount of risk and therefore the interest rate. A borrower with a higher risk factor will be subject to a higher interest rate. Loans with a higher level of risk are always subject to higher interest rates.

If you were unable to keep up with your mortgage payments and your home lost value, the bank may not be able to recoup the entire amount borrowed. This is what we mean when we talk about risk.

Lenders will look at the LTV requested as part of their affordability checks. During times of market uncertainty, lenders are less likely to grant high risk, high LTV loans. So if you’re thinking about getting on the property ladder while there is a slump in the housing market, you may need to save a larger deposit to be accepted.

When the market is booming, lenders are more likely to be generous with their loan approvals, so a higher LTV might not be an issue. In this situation, you can still expect to pay higher rates for your mortgage product, as the bank will still be taking on a high-risk loan.

Is higher or lower LTV better?

A high LTV means that you are borrowing a high percentage of the property value. This means you have a small deposit, and that the risk to the lender is higher. This type of loan would be subject to high-interest rates.

A low LTV means that you are borrowing a low percentage of the property value because you have a large deposit. This would be lower risk to the lender and you should, therefore, have access to the best interest rates.

LTV In Practice

Imagine you are purchasing a £200,000 home. Offering a deposit of £10,000 would mean applying for an LTV of 95%. This could be considered high, and therefore subject to high-interest rates.

With a deposit of £40,000, this could mean applying for an LTV of 80%. This would be considered low, and you would, therefore, be able to access the best rates.

While you would pay a larger deposit upfront, you would be able to access lower interest rates which would lower your monthly payments, allow you to pay it off soon, and reduce the overall amount that you have to repay. This is why it is considered a good thing to apply for a low LTV.

What is the maximum LTV on a mortgage?

The maximum LTV many lenders will allow is 95%. In the past, it was possible to get a 100% LTV mortgage. This would mean that no deposit is required and the bank would take on 100% of the risk. These have been largely phased out since the 2008 financial crash.

The 100% mortgage might still be available if you can ask a family member to offer their property as security against the loan. This means that if you fail to make your mortgage payments, the lender would be able to seize your guarantor’s home to make up any shortfall.

Most lenders will only offer 95% LTV, which means you will need to provide a minimum of 5% of the value of the home. There are options to boost your deposit, including a "help to buy" loan which would increase your 5% deposit to 20%. You would take out a loan for the remaining 15% and pay this back alongside your mortgage payments.

How can I lower my LTV?

There are two main ways you can lower your LTV to access better mortgage rates.

  • The first option is to save more money so that you can offer a bigger deposit. For example, if you are purchasing a £95,000 property, you would need £4,750 for a 95% LTV and £9,500 for a 90% LTV. Boosting your deposit savings through a "help to buy" scheme is one way that you could increase your deposit and lower your LTV.
  • The second option is to purchase a less expensive home in the beginning. For example, a £10,000 deposit would only be a 5% deposit for a £200,000 home, but it would be a 10% deposit for a £100,000 property. Purchasing and renovating a less expensive home and then moving to a larger property when you have increased your equity

Should I use a mortgage broker or a bank?

When you are thinking about buying a house, your instincts might tell you to keep things cheap. This might mean going for the cheapest conveyancing quote, opting for a bank over a broker and even opting for the cheapest house survey. You’re already making a huge investment, so why wouldn’t you want to keep your costs down?

When it comes to choosing between a bank and a broker, many prospective buyers will choose the former because they are concerned about the fees associated with the latter. In this article, we will outline some of the reasons this can be a false economy.

 While you might be saving yourself the fees in the short term, in the long term, opting for a bank over a broker can lead you to pay thousands and even tens of thousands more on your mortgage. Read on to discover why a mortgage broker can actually save you money over going directly to high street lenders or your own bank.

Access the whole market

By working with a mortgage broker, you will have access to a wider range of lenders. A whole of market broker is one with connections and contacts across a huge selection of providers. This means that they have in-depth knowledge of the products available from many different lenders.

This kind of access and overview of the market is invaluable when you are looking for the best deal on your mortgage. And the best brokers will also offer up-to-date offers, meaning you will be the first to hear about new offers as they become available.

Find specialist lenders

If you are in a unique situation then working with a broker can help you to avoid being rejected by high street lenders. For example, if you have poor credit or if you have unusual income from freelancing, for example, then a broker will be able to point you in the direction of a lender who is more likely to accept your application.

It doesn’t matter how unique you think your situation is, a whole of market broker will be able to help you navigate the mortgage application field. You could have poor credit, irregular income through self employment and be looking for a buy to let property and a whole of market broker may still be able to find you a lender willing to work with you.

Not only can they help people in unique situations but they can also help those who are looking for the best deals. You don’t have to settle for high rates from your bank just because you have poor credit history.

It’s also worth noting that having your mortgage application rejected can damage your credit score and prevent you from securing credit in the future. This is another reason working with a broker can be so helpful. You will be able to avoid rejected applications which can damage your credit score and make it harder to secure a mortgage.

Access expert advice

Searching for a mortgage can be overwhelming. Very few people are experts in this field, and why would you be? You only need to know the information for a short time, just enough to be able to make an informed decision. But the mortgage market is always changing and updating, which can make it hard to get up to speed. This is where working with a mortgage broker can really help. You don’t have to be an expert, because your broker is there to help you navigate the industry. They’ll help you to understand key terms and also avoid any hidden costs or difficult payment terms. 

It’s convenient

Perhaps the most overlooked reason for working with a mortgage broker is convenience. You might think you are saving money by doing all of the research yourself, but your time is also worth a lot. If you want the convenience of knowing that everything is in hand and you can simply sign on the dotted line with confidence then a mortgage broker is perfect for you.

If you want to find out if a mortgage broker could help you in your unique situation, get in touch with Niche Mortgage Info today. We will be able to help you navigate the mortgage market and put you in touch with the right broker for your needs.

What should I declare when selling my home?

If you’re thinking about selling your home, you may be wondering about the legal requirements. While you will naturally want to highlight the positives and gloss over any negatives, there are rules surrounding what you must legally declare when selling your home.

All sales and home descriptions are governed by the Consumer Protection Against Unfair Trading Rules. These rules are in place to protect buyers and ensure they have all the right information to allow them to make a decision. 

If you fail to declare something important during the selling process, you could face prosecution as it is a criminal offence to withhold information. This is why it’s always best to err on the side of caution and let the buyer know everything they need to make an informed decision.

What do I legally have to declare?

Before you can sell your home through a UK estate agent, you will need to fill in a number of forms. These forms will outline why you are selling and also cover any important points which need to be noted about the property. In general, you will need to declare the following:

  • Any structural changes to the property which have been made, either by you or by a previous owner
  • Disputes about party walls and boundaries
  • The presence of Japanese knotweed on the land and how it is being managed
  • If any of your neighbours have an ASBO
  • If your property is on a flight path
  • If there has been a violent death at the property
  • If the area has unusually high crime levels

These might all sound like the kind of things you want to keep quiet from potential buyers, but you will have to disclose them to your estate agent. If you aren’t sure what is relevant, check with your estate agent or conveyancing solicitor. 

Declaring subsidence

The issue of subsidence falls under the structural integrity of the property. If your property or any extensions or planning permission applications have been affected by subsidence, you should provide as much information as possible. You might think that this would put buyers (and their lenders) off, but a well-managed case of subsidence doesn’t have to be cause for concern.

Provided you have the right paperwork in order and the condition is under control, it shouldn’t have a huge impact on the value of your property. And by declaring it, you will help to give your buyer peace of mind.

There is no time limit on how long you have to declare subsidence. This means that any old cases should always be mentioned, even if they are no longer problematic. This will nearly always come to light in the buying process, so it makes sense to be upfront. These are some of the most common ways that a case of subsidence will come to light.

  • The buyer’s solicitor uncovers it during their searches
  • The surveyor notes physical evidence
  • The buyer’s insurance provider uncovers a record of it on a central insurance database

For this reason, it makes sense to declare everything from the start so there is no confusion. A nasty surprise further down the line could quickly sour the buying process.

When do I need a TA6 form?

When you sell your property, you will need to fill in this document. It’s around 15 pages long and covers a range of questions related to your property. If you fail to disclose something that later causes a problem for the buyer, you could face legal action. It is intended to be a comprehensive document which helps to establish everything the buyer needs to know about the property.

In 2017, the TA6 form was revised to include the presence of Japanese Knotweed on your property. It’s important that you make sure you understand the document and what is being asked of you. The responsibility lies on the seller to ensure the document is accurate and that they understand what they are signing. Vague answers might help to sell your home faster, but they also leave you open to legal action in the future.

Honesty is always best

While it might feel like you are sabotaging your own chances of selling your property, it’s a legal requirement that you share all of the negative details. If you are moving into a new home, imagine that the seller of your new home hid vital information from you. If the tables were turned, you would likely be distraught to learn that your new dream home had a history of structural problems.

While some details might rule out your property for some buyers, others will be willing to overlook the issues because the property has enough redeeming features. By being honest and open about the property from the start, you will avoid unnecessary viewings and will automatically narrow down the potential viewings to people who are aware of the risks. In many cases, these issues won’t impact the value of the property, provided that the issues are under control. 

Another benefit to being honest when selling your property is that it protects you from legal action. When selling your property, you should always keep your documents in order and make sure you keep evidence of your declarations. This should protect you from legal action should the buyer decide to sue you for misrepresentation. If at any stage you are unsure about your legal obligations, check with your estate agent. They will know how to be honest about the problems with your property without putting off potential buyers. 

8 frequently asked questions about mortgages… answered

When you first start looking for a new home, the process of securing a mortgage can be completely overwhelming. With this in mind, we have put together this guide to the eight most commonly asked questions about mortgages, complete with answers. 

1. What are the main types of mortgage?

Mortgages can be split into four main categories: repayment mortgages, interest only mortgages, cashback mortgages and buy-to-let mortgages. Within these main mortgage categories, there are further sub categories.

Repayment mortgages

With a repayment mortgage, you are making payments towards the principal amount plus any additional interest. Payments are usually set for a number of years, usually over 25 years. The type of mortgage you choose will depend on your affordability. For example, a tracker mortgage will track the Bank of England base rate, meaning that your payments could go up or down. You should only choose this if you can afford your payments to increase. A fixed rate mortgage, on the other hand, will give you fixed repayments for a set period, usually 2, 3, 4 or 5 years. This can be ideal if you want to set a budget and stick to it.

Interest-only mortgages

With an interest only mortgage, you payments will be lower as you are only paying off the interest. At the end of the term, you will need to pay off the mortgage in full, so you should only choose this if you will be able to save the money to pay off your mortgage at the end.

Cashback mortgages

This is a kind of incentive that rewards the applicant with a lump sum once the mortgage is paid out. It can work out more expensive, but if you need help with moving or renovation costs, it can be a useful option.

Buy-to-let mortgages

If you plan to let out the property, you would need to apply for a buy to let mortgage. With this type of mortgage, the rental payments of the property will need to be enough to cover the mortgage payments.

2. How does mortgage interest work?

When you apply for a mortgage, the lender will decide how much interest you will pay. This is usually calculated based on how much deposit you can provide. Those with a 40% deposit will be offered better interest rates than those with a 10% deposit. 

3. Are my mortgage payments tax deductible?

The interest portion of the mortgage repayments can be tax deductible, but only if you rent out the property. You will also need to declare your rental income on your tax return.

4. Do I need a mortgage broker?

You don’t have to use a mortgage broker, you can go directly to the bank or building society to make an application. However, there are benefits to working with a broker. Perhaps the most obvious is that they will have in-depth knowledge of the mortgage market and will be able to advise you on the best course of action.

5. Which mortgage brokers are the best?

When choosing a mortgage broker, you should always opt for a ‘whole of market’ broker. This means that they have access to a wide pool of lenders and are not affiliated with any one lender. This will ensure you can work with your broker to find the best possible deal from a lender that is likely to accept your application.

6. Which mortgage should I choose?

This will all depend on your financial situation. You will need to think about your current circumstances and how your circumstances might change in the future. Working with a mortgage broker can help you to understand your options and make sure you are able to make an informed choice.

7. Who are mortgage underwriters?

The mortgage underwriters work for banks and make a decision as to whether they should accept or decline a mortgage application. They are trained to look at a number of factors to assess the risk of lending to an individual or couple. They also decide if a bank should lend money for specific properties.  

8. What happens when I have paid off my mortgage?

Once you have completed your mortgage payments, you own your home completely. You should receive a letter from your lender confirming that your repayments are complete. If you decide to sell your home, you will be able to keep all of the proceeds of the sale.

Which is harder, moving home or being a first-time buyer?

An ongoing debate in the mortgage world is whether it is more difficult to be a first time buyer or a second time buyer. As a first time buyer, everything is new and scary. The learning curve is incredibly steep and you have to become an expert in everything from mortgages to conveyancing in a short space of time.

However, as a second time buyer, you not only have to deal with buying a new home, you also have to manage selling your old home. Each side has its perks and pitfalls, but which one is more difficult? In this blog, we’ll look at some of the ways you can make life easier as a first time or second time buyer.

Getting help as a first time buyer

Being a first time buyer is no doubt a daunting experience. But it’s important to remember that there is a lot of support available. Not only in terms of financial support, but also in terms of getting advice. First time buyers have access to the Help to Buy ISA and other schemes which can make it easier to get on the property ladder. In addition to this financial support, you will also be able to ask for advice from these organisations. 

Mistakes first time buyers make

One common mistake that first time buyers make it assuming that the estate agent is their best friend. It’s important to remember that you are not their priority. They work for the seller, so you shouldn’t rely on the estate agent to do anything except try to sell you a property.

If you follow their advice, you could end up with a mortgage that isn’t right for you, or paying too much for a property. Remember that they earn commission on the sale, so it’s not uncommon for them to say anything you want to hear just to get you to make an offer.

Another common mistake is to assume that you can only use the conveyancing solicitor suggested by the estate agent. They will often have financial agreements with solicitors and may receive a commission for every referral. This means you could end up paying more than you need to.

Support for second time buyers

When you are a second time buyer, you’ve already been around the block. You know how the mortgage application process works and you can navigate with a bit of confidence. However, you are also in a delicate situation where you need to find a buyer for your home while also looking for a new home.

This can be very stressful, but remember that you are now in the driving seat. As a second time buyer, estate agents will suddenly be very keen to help you out. Remember that you are the client this time around and you call the shots. But don’t make the mistake of going for the cheapest option. Paying more in estate agent fees could be worthwhile if the agent is quick to find a buyer and they secure a higher purchase price.

Mistakes made by second time buyers

Most of the mistakes relate to selling your existing home. Simple things like letting the maintenance standards fall can seriously damage your ability to see your home. Setting the asking price is also a difficult field. If you overvalue while fully expecting to accept a lower price, you could lower your potential audience as people search based on their price range.

And finally, failing to be flexible with viewings can be another reason properties don’t sell. It might be annoying keeping your home spotless while strangers trudge around your halls, but you will likely be doing this to other people in your search for a new home. 

Both can benefit from a broker

Whether you are a first time buyer or a second time buyer, it makes sense to shop around for the best mortgage deal. By working with a specialist broker, you will have access to the latest offers and deals. Having your mortgage application declined for any reason can delay the home buying process and may even lead you to lose out on your dream home. By working with a broker, you can be confident your application will be accepted.

Is moving home harder than being a first time buyer?

The process of buying a home is stressful no matter how you look at it. But which is worse, being a first time buyer or selling your home and buying another? In this blog post, we’ll break down some of the obstacles you might come up against as a first time buyer and how you can overcome them. We’ll also look at how you can make selling up and moving home easier.

Whatever stage in the process you are currently at, it always helps to get expert advice. If you’re struggling to understand your mortgage options, get in touch with Niche Mortgage Info today and we’ll be more than happy to help clear up any confusion.

Help for first time buyers

In many ways, being a first time buyer is easier as you won’t have the stress of selling your existing home while trying to buy your new home. When moving home, there’s a lot more that can go wrong in the chain. Imagine you are buying a home from someone who has to buy their new home before they can sell to you. And then imagine the person buying your home also has their own home to sell. That’s a lot of steps that could go wrong. As a first time buyer, you only need to think about yourself.

However, first time buyers are often overwhelmed by the options available to them. Navigating the mortgage process for the first time can be very complicated. There’s also the issue of saving up enough money for the deposit and all of the additional fees. The good news is that there is plenty of support for first time buyers. According to one property developer, around half of all properties sold in the first half of 2019 went to first time buyers. This shows that the schemes are helping people onto the property ladder, so the support is out there.

Do estate agents have your back?

As a first time buyer, you might lean on the expertise of the estate agent to help you navigate the depths. However, it’s important to be cautious. The estate agent doesn’t work for you, they work for their seller. They only earn commission when the property sells, and many won’t mind saying what you want to hear if it helps you make a decision. Instead, you should turn to the people you are paying for support and advice. This might include your mortgage broker, solicitor or even your bank.

Moving home puts you in the driving seat

While selling one property and buying another might be stressful, this is when you will feel most in control. Suddenly, you’ll have estate agents on your side as they will want to do everything they can to secure your sale. Not only will you be able to take the wheel, you’ll also be more familiar with the processes. Conveyancing will just be another bit of paperwork, not something that keeps you awake at night.

Now that you know what to look for, you can pick your providers with ease. Look for a proactive estate agent with in-depth knowledge of your local area. If they offer suggestions on things that might sell your home sooner, then it’s worth following their advice.

So, which is harder?

First time buyers and those selling up and moving will both face struggles along the way. Getting on the property ladder is difficult, and once you’re there, the process of moving to a different home can be daunting. The important thing to remember is that you will have support every step of the way. If you aren’t sure what your next steps should be, get in touch with the Niche Mortgage Info team for advice.

The barriers to homeownership for young adults and how to overcome them

In 1988, the average age of a first time buyer was just 23. Fast forward to this year, and that age has increased to 30. So, why are young adults taking so much longer to get on the property ladder? And is it harder for this generation to buy a home than it was for previous generations?

The debate about whether or not previous generations had it easier has been raging on for years. Some young people feel that they have been completely priced out of the housing market. Particularly those living in London on low salaries. So, what are the main barriers to homeownership and what can young people do about it?

Low interest rates

The first hurdle to being able to afford your own home is saving for a deposit. With interest rates at an all-time low, this makes it easier to borrow money. However, this also makes it harder to save money. The average deposit varies throughout the UK, but the average is £33,000. This is more than many young people earn in a year so the prospect of saving this amount can be very daunting.

To counteract this, young people should consider using a help to buy ISA. For every £200 you save, the government will add a further £50. You can earn to £3,000 using this method, which would leave you with a deposit of £15,000. If two people save together, this could leave them with a £30,000 deposit for their first home. But how realistic is it to save £12,000? Especially with the costs of rent spiralling out of control.

Trapped in renting

Another barrier to homeownership is the growing cost of the rent. As we mentioned above, the average age of a first time buyer in 1988 was 23 and this has now risen to 30. That means that young people are spending an extra 7 years in the rental market, which is only going to make their mortgages more expensive and eat into their savings.

There isn’t much that can be done to tackle the high cost of rental prices. One solution would be to share with other people for longer rather than taking on your own place. Another alternative would be to choose a place at the lower end of your budget to allow you to save more of your monthly income.

Deposits are too high

Another common complaint is that deposits are far too high. 100% mortgages are now a thing of the past, and it’s rare to find a 95% mortgage. The majority of lenders are looking for 20-25% deposit which can be unimaginable for low income workers. While those who have help from their relatives might be able to get on the property ladder, there are still a lot of young people who are priced out of home ownership by the demands of high deposits.

Less traditional career paths

Another aspect which is worth considering is the rise of non traditional career paths. In the past, there was a trend of leaving school or university and then starting an apprenticeship or going into your first job. There was such a thing as a “job for life” and this made it easier for lenders to make a decision. Now, young people are more likely to be self-employed or change jobs regularly. Applying for a mortgage when self employed is incredibly difficult, with many lenders asking for 3 years of accounts as proof of income.

So, what can young people do to work around these obstacles? The first step is to get clued up on the types of homeownership schemes available to them. Speaking to specialist advisors like Niche Mortgage Info will give them access to a wide range of brokers. By going down the broker route, you’ll have a much better chance of finding a mortgage that meets your needs.

How much does it cost to move home?

Putting aside the cost of saving for a deposit for your new home, how much exactly is it going to cost to move? If it’s your first home, you could save a lot of money on things like stamp duty. However, if you are selling your current home and moving to a new property, the costs quickly add up.

In this article, we will look at some of the biggest expenses when moving house and how you can keep these to a minimum.

How much does it cost to move house in 2019?

There are two sides to think about. First, you have to sell your own home, and then you have to buy a new one. According to the UK House Price Index, the average cost of a property in the UK is £226,071 and the average cost of moving is estimated to be around £8,885. So, how does all of this add up?

The cost of buying a home

As you will be selling a home and buying another home, you will have to pay stamp duty on the property. This is around £2,000. As part of the mortgage application process, you’ll also need to instruct property surveyors at a cost of £400 and a valuation fee of around £227 will also apply. And finally, to make the sale legal, you’ll have to hand over around £580 in conveyancing fees. This gives you a grand total of around £3,207.

The cost of selling a home

To sell your current home, your estate agent’s fees will set you back around £3,391. Conveyancing fees for the seller cost around £950 and the EPC rating will set you back at least £80. This gives us a total of £4,421 and a running total of £7,628.

The cost of moving home

The main costs of moving home will be the removal company, which can cost around £1,192 for packaging materials and a removal service. You’ll also need a mail redirection service from Royal Mail which costs around £40. This gives us a total of £1,232 and a running total of £8,860.

How do cut your costs

All of these figures listed above are averages, so there will be room to save money on this total. If you choose to list your home with an online estate agent, you could dramatically reduce the commission you pay.

The cost of legal fees is unavoidable, but there are ways you can make this cheaper. You should also shop around for things like conveyancing. A lot of people opt for a local company as they assume it will be easier. However, there is no reason to choose a local company if you find a conveyancing law firm elsewhere in the country with good reviews and low rates.

Another way to save on the costs of moving house is to work with a specialist mortgage advisor like Niche Mortgage Info. They will be able to give you access to the best mortgage deals which can offset some of the costs of moving house.

And finally, you can reduce the cost of a removal company by roping in friends and family and going down the DIY route. You can rent a large van for the day and take responsibility for the move yourself. If money is an issue, this can be a great way to cut costs. Granted, it won’t be as relaxing as letting someone else handle the move, but with the money you save, you could always book yourself a spa day to recover!