New figures by MoneySavingExpert indicate that first-time buyers looking to get a mortgage could face fees and taxes of up to £6,000 when buying a house.
Although many prospective buyers make saving enough money to afford a deposit as their main objective, they fail to realise there are several thousand pounds of fees and taxes to pay.
First-time buyers will face as many as eight different bills, most of which need to be paid upfront. These include Stamp Duty, mortgage fees, valuation fees, solicitor fees, search fees, chaps fees, surveyor fees and broker fees, although the last two are optional. A typical Stamp Duty fee is £560, whilst a typical mortgage fee is £942.
It is therefore imperative to set aside several thousand pounds to cover for such cost when buying a house.
“Buying a new home is a huge expense for most people, especially first-time buyers. It is very easy to miss some of these charges, such as local authority searches and valuation fees, but they can add hundreds of pounds to the cost,” said Guy Anker, of MoneySavingExpert.
“While becoming a first-time buyer can be a dream come true, renting is not a dirty word. It is vital to tot up the full cost with all fees – many of which need to be paid upfront – and only go ahead if you can truly afford to, otherwise you risk ending up in a heap of debt.”
