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Costs of moving
Buying a home
Sometimes it's difficult to see exactly how much a move is going to cost. Our guide gives you a good idea of what to expect, so hopefully there won't be too many surprises before (and after) you move in.
Mortgage repayments and monthly bills
Take a look at our budget planner to work out if you can afford your monthly mortgage repayments on top of your other household bills.
Arrangement fees
Some lenders require a booking or arrangement fee. Booking fees are usually paid when you apply. If you decide not to proceed with the mortgage, they're not always refundable.
Many lenders allow you to add these fees to the loan on completion. If you do add any application fees to your loan, remember that you will pay interest on these fees, and repay them over the whole term.
Higher lending charge
At The Royal Bank of Scotland, there is a higher lending charge if you borrow more than 90% of the property or the purchase price, whichever is lower. This goes towards any loss of money if you default on your mortgage payments and your property is repossessed.
Legal fees
These include solicitor fees, disbursements and local search fees.
If you're planning to buy a house in Scotland, you should have a solicitor in place by the time you find a property you like.
In England and Wales, it's possible to make an offer without obtaining legal advice. You will still need to have appointed a solicitor (or licensed conveyancer) though, before you complete your mortgage application.
Valuation report
When you have found a property you like, tell your mortgage adviser. If you choose a mortgage from The Royal Bank of Scotland, we will instruct a professionally qualified valuer to carry out a property valuation.
The mortgage we offer will be based on the valuation or purchase price - whichever is lower.
A valuation report is simply a report on the current value of a property - it does not detect existing or potential defects.
Surveys
We recommend you arrange a comprehensive survey. A survey also includes a valuation.
The survey creates a contact between you and the valuer, making the valuer responsible for detecting any defects within the scope of the survey you have chosen.
There are two types of survey - a homebuyer's report and a building survey.
- Homebuyer's report
This concise report covers the general condition of the property. It provides the lender with a basic report for mortgage purposes. Any major defects in the property will be listed, along with recommendations for further investigations.
A homebuyer's report inspects the property only where it is reasonably accessible. There is no testing of things such as heating, plumbing, electrical or drainage services. - Building survey
This report highlights any major structural faults, which may prove expensive to repair. It will also detail the various minor defects (which will appear in any house sooner or later) and provides the lender with a basic report for mortgage purposes.
A building survey gives you the greatest possible protection against any unnoticed defects in the property. It's particularly important when purchasing an older property, or one needing renovation.
Stamp duty
You have to pay this tax when you buy a property with a purchase price of over £125,000. The amount you pay is a percentage of the purchase price.
| Residential property purchase price | Rate of stamp duty tax |
|---|---|
| up to £125,000 | 0% |
| £125,001 - £250,000 | 1% |
| £250,001 - £500,000 | 3% |
| £500,001 or more | 4% |
Figures correct as at 1 September 2006.
Moving
If you are planning to move yourself, it's probably best to hire a van. Otherwise you could end up making countless trips in your car. If not, budget for a removal company to do the job. It's less hassle for you and your suspension.
Life assurance
If you have a mortgage, you should consider taking out a life assurance policy. If you die before the end of the mortgage term, the policy could cover any outstanding loan, including any further advance borrowing.
Your life assurance policy will not usually be assigned to The Royal Bank of Scotland. You may wish to seek advice on the consequences of non-assignation which may arise in the event of your death.
Home and contents insurance
There are two parts to insuring your home. One is your actual property and the other is your contents. You don't have to take out either with us, but it can't hurt to ask for a quote.
Mortgage repayment protection
Mortgage Loanguard payment protection could meet your mortgage payments for up to 12 months if you're unable to work due to accident, illness or involuntary unemployment. Your Mortgage Adviser can tell you more.