In this blog post I wanted to cover everything financial when buying my first home. I did include some of these figures in a past blog post ‘I Bought A House!‘ but I wanted to create a separate post to highlight everything in one place. This previous post was about the whole journey of finding out how much money I could borrow, viewing property, agreeing on a price and every step along the way if you wanted a bit more of a detailed read. I hope you find this post useful and if you are thinking of buying property it might give you an insight into costs to expect.
Mortgage, Legal & Lending
Here is a breakdown of all of the fees associated with arranging the mortgage, legal fees for the conveyancer and the loan itself. I have put these in date order as well so you can see the timeline of the finances. The upfront cost is everything I had to pay to get the keys to the property including legal fees and the deposit. The mortgage total is the loan for the house as well as a fee added by the bank which I will repay over the agreed term. I have also included an overall total in the table. For reference I bought the property for £87000.
|Mortgage Broker Fee||£100||02 Sep 2020|
|Halifax Valuation Fee||£200||08 Sep 2020|
|Initial Conveyancer Fees||£500||11 Sept 2020|
|Lifetime ISA Cash Deposit||£21550||20 Oct 2020|
|Remaining Conveyancer Fees||£408.40||31 Oct 2020|
|Halifax Mortgage Loan||£65450||05 Nov 2020|
|Halifax Mortgage Fee (Added to Loan)||£999||05 Nov 2020|
|Upfront Cost||£22758.40||05 Nov 2020|
|Mortgage Total||£66449.00||05 Nov 2020|
|Overall Cost||£89207.40||05 Nov 2020|
Conveyancer Fees Breakdown
In the table above you will see two payments to the conveyancers. The initial £500 was for them to begin the work and start the required searches on the property. The remaining fees were invoiced and paid before the completion and handover of keys. I have broken down this total of £908.40 below in this separate table for you to see where this money was allocated.
|Land Registry Search Fee||£40|
|Land Charges Search Fee||£2|
|Land Registry Fee||£3|
|Acting Conveyancer Fee||£600|
|Official Search Package||£204.60|
|Bank Transfer Fee||£48|
|Electronic Storage of File||£6.00|
These are two insurance products I chose to put in place. Firstly is life insurance coverage from 1st October onwards (I put this in place in advance of the completion of the purchase) and then the home and contents insurance. The insurance for the property was required before the mortgage funds could be released however as this can be paid monthly or annually I didn’t include it in the upfront costs table at the top of this blog entry.
|Legal & General Life Insurance||£14.76||15th October 2020 (+ Monthly)|
|AXA Home & Contents Insurance||£235.65||05 Nov 2020 (Annual Fee)|
Thanks for reading this blog post. Please take into account that I purchased property by myself with no financial aid from family/friends… I also purchased property in a cheaper area of my county to fit within my budget as property prices do vary massively in Pembrokeshire. Another thing to consider was that I wanted to keep my monthly outgoings as minimal as possible to provide myself with greater flexibility in future and not having the pressure of massive overheads. Please let me know if you want to know any other details in the comments and hope you have a great day! Take care and stay safe – Glen.