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How much should I save for fees?
ForeverHomeDreamer
Posts: 11 Forumite
Hello,
I'm starting to think about buying a house, I have one savings account for my deposit and a separate one for fees. I currently have £400 saved towards fees, in my mind I'm planning to aim for £3k (I have no idea where I got this figure from!)
I'll be looking to buy for no more than £130k, so stamp duty won't be an issue, but will £3k be enough to cover all the costs associated with buying? Is there any way to reduce the amount of fees I'll have to pay/get good value for money?
Thank you for any advice
I'm starting to think about buying a house, I have one savings account for my deposit and a separate one for fees. I currently have £400 saved towards fees, in my mind I'm planning to aim for £3k (I have no idea where I got this figure from!)
I'll be looking to buy for no more than £130k, so stamp duty won't be an issue, but will £3k be enough to cover all the costs associated with buying? Is there any way to reduce the amount of fees I'll have to pay/get good value for money?
Thank you for any advice
0
Comments
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3K seems a very sensible amount of money. However, according to our experience, 2 sales fell through (seller pulled out), we have already spent /wasted about 2k on surveys & mortgage arrangement fee etc.
Maybe it's only us being unlucky though. Good luck to you!0 -
Solictor including various searches/fees and VAT is probably going to be under £1k.
So then it's just the cost of a survey (£400-800, depending what you have) and if there are any mortgage arrangement fees (£0-1000 as a guess).
£3k will be enough.0 -
moon_river wrote: »3K seems a very sensible amount of money. However, according to our experience, 2 sales fell through (seller pulled out), we have already spent /wasted about 2k on surveys & mortgage arrangement fee etc.
Maybe it's only us being unlucky though. Good luck to you!
Which is why I'm planning on putting 5k away for fees 'just in case'.:www: Progress Report :www:
Offer accepted: £107'000
Deposit: £23'000
Mortgage approved for: £84'000
Exchanged: 2/3/16
:T ... complete on 9/3/16 ... :T0 -
Solicitors fees, stamp duty and mortgage broker fees (if you use a broker) and possible mortgage product fees depending on what you go for. Then Valuation/survey.
Solicitors fees vary but I would budget for about £1100 to be safe, £500 stamp duty if buying at 130k. Maybe £1500 for broker and product fees (although no reason you can't go direct on a fee free mortgage)
Valuation/survey-depends on what you want-up to £500.
Worst case scenario about £3600. Best case about £2k.0 -
Excellent, thank you for all your replies and advice, much appreciated.
FHD:)0 -
I'm over budgeting, and anything left will go towards white goods/decorating. I'm going to look around the £250k mark, so stamp duty could be under 3k or over 7k. If there's not much left I'm quite happy to do things slowly as the money comes in!0
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At that sort of purchase price (£125k is the stamp duty threshold), assuming you just want a basic valuation I would say £1500 should be plenty.
The arrangement fee (typically £999) can usually be added to the mortgage.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
At that sort of purchase price (£125k is the stamp duty threshold), assuming you just want a basic valuation I would say £1500 should be plenty.
The arrangement fee (typically £999) can usually be added to the mortgage.
Thanks for this, I thought stamp duty was over £250k I'm hoping to save enough that I can avoid adding the arrangement fee on, but it all depends on where I buy.
FHD0 -
stamp duty is 1% for houses above125k + upto when the house is 250k where it becomes 3%0
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