The Cost of Purchasing a House in the UK: What you should know

Purchasing a house is not as simple as you might initially perceive – there’s a lot of little (and not-so-little) nuances which you may have to deal with – including costs which you may not have considered yet. Purchasing a house is a serious affair, after all, and chances are you will be paying the better part of two or three decades for it. Here, then, is a list of things to consider before buying a home – the cost of purchasing a house – and what you should know.

Getting a mortgage

You’ll probably be getting a mortgage; very few people, after all, have the money ready to purchase the house without having to loan the money. Beware, however, of the legal ramifications. When you choose to get a mortgage, you never actually own the home until all the monthly mortgage payments are properly paid for. Your house serves as collateral.

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Interest rates

It may be a good idea to wait a few years – or it may be the perfect opportunity to buy a house now. A lot of it will depend on the interest rates. The higher the interest rates, the more you will eventually end up paying. Interest rates also fluctuate depending on the banks or financial institutions, so do your research.

Deposit

You will be required to pay an initial deposit on your new house – the bank (or other financial institution) is unlikely to lend you the full amount. The deposit makes it easier for the bank to gauge you. The larger the deposit you yourself can make, the more seriously the bank will take you. Furthermore, interest rates tend to be lower when you can put a large deposit down.

Other expenses

There are a lot of extra expenses that will come with purchasing a house – and most of them are rarely considered. Here is a short list:

• Valuation fee. The mortgage lender will need to know what your house is worth because the house will be kept as collateral. This can be as cheap as £150 but can also run up to £1500.
  

• Surveyor’s fee. Before buying a house, it is wise to consult a surveyor to make sure there are no unwanted or unnoticed issues with the property. The surveyor’s fee could also range between £150 to £600.
  

• Legal fees. While the contract tends to be straightforward, you’ll still need to hire an attorney or solicitor to make sure everything is in order. Legal fees could add up to £1500.
  

When buying a property, mortgage brokers Colchester like Flagstone.co.uk know that you won’t be paying for just the property – there are many other expenses to consider. Prospective home owners would do well to do the proper research so they can make the right choice in the end.