Moving Home - How much should I budget?
Mortgage solutions that will make your mouth water
If you are a homeowner, it's likely that the value of your property will have increased over time and you may have money tied up in your home. This sum is regarded as the equity in your property which, in very simple terms, is the difference between the current value of your property and the mortgage/borrowings secured on it.
First time buyers
First time buyers need to find their property deposit (typically a minimum 5% of the lower of the purchase price or value) and all the associated costs up front.
Existing Equity
However, in most circumstances, home movers can use the equity tied up in the current home to pay the deposit for the new home and cover some of the associated costs upon legal completion.
Other Costs
Associated costs might include Stamp Duty Land Tax, Solicitors fees, Estate Agents fees and furniture removal fees. Please note that some costs may be incurred upfront and these might include a property valuation fee (standard mortgage valuation). We would normally suggest that you obtain a more detailed report (Homebuyers survey / Full building survey).
Below is an example of using the equity in your exisiting home.
Example
| Current home | Value of existing home |
£210,000 | |
| Mortgage outstanding | £130,000 | ||
| Equity | £80,000 | ||
| New Home | Purchase price of new home | £240,000 | |
| New mortgage required | £170,000 | ||
| Deposit | £70,000 | (from equity above) | |
| Associated costs | £10,000 | (from equity above) |
We would be delighted to hear from you if you need help determining the likely costs associated with your next purchase. Please call us free between 10am and 7pm on 0800 298 5136. Alternatively, use the call me feature and we will contact you at a convenient time. If it's just a quick quote you're after, we will be pleased to help.
The following sale and purchase associated costs are for guidance purposes only. In most cases, the costs are linked directly to the sale and purchase prices which means the total cost could be substantially more if the purchase price of the new property is higher. Please refer to the Stamp Duty Land Tax costs table at the base of the page for detailed information.
Cost of Selling a Property
| Price bracket | Selling Solicitor | Selling Agent | Selling Total |
| *Average £60k to £1m | £484 | £4,091 | £4,666 |
| £150,000 | £484 | £1,980 | £2,464 |
| £200,000 | £512 | £2,615 | £3,127 |
| £300,000 | £570 | £3,832 | £4,402 |
Source : Woolwich cost of moving survey 2007
Cost of Buying a Property
| Price bracket | Buying Solicitor | Stamp Duty Land Tax |
Land Registry/ Charge |
Search Fees | Total Buying Fees |
| *Average £60k to £1m | £605 | £9,750 | £195 | £195 | £10,745 |
| £150,000 | £513 | £1,500 | £150 | £195 | £2,358 |
| £200,000 | £543 | £2,000 | £150 | £195 | £2,888 |
| £300,000 | £597 | £9,000 | £220 | £195 | £10,012 |
Source : Woolwich cost of moving survey 2007
Please note that properties marketed for sale from 14 December 2007 in England and Wales will need a Home Information Pack (HIP), which includes a home energy rating. Please click on the following link for more detailed information:
www.homeinformationpacks.gov.uk/consumer/1_home.html
Stamp duty Land Tax
You pay Stamp Duty Land Tax on property. If the property purchase price is £125,000 or less, you will not pay Stamp Duty Land Tax. If it's more than £125,000, you will pay between one and four per cent of the whole purchase price, on a sliding scale:
| Residential property - purchase price | Rate of Stamp Duty Land Tax |
| up to £125,000 | 0% |
| £125,001 - £250,000 | 1% |
| £250,001 - £500,000 | 3% |
| £500,001 or more | 4% |
If you're buying a property in an area designated by the government as 'disadvantaged', you will not pay any Stamp Duty Land Tax if the purchase price is £150,000 or less. Your solicitor will usually allow for the figure in his quotation and will arrange to pay it on your behalf on legal completion.
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Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgages secured on overseas property are not regulated by the Financial Services Authority. |
The Sterling equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements. Changes in exchange rates may increase the Sterling equivalent of your debt. |
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