Friday, 20 December 2013

How much will it actually cost me to move? Part 1

How much will it actually cost me to move?


So here we are, another Autumnal race to move into a new property by Christmas.  So, once you have decided that a sale is the way forward have you actually considered the full cost?

I'm not talking about your Estate Agents fees.  That is a whole new problem, what I'm referring to are the hidden costs.  The ones that throw up all over you when your money is drying up faster than you have ever seen, while teetering on the edge of a cliff, praying that your house sale/purchase actually runs the course and no one in the chain backs out.

Selling and buying is a financial minefield.  One that has to be approached with caution, and scrutinized to ensure that the next step is in fact the right step for you.  I have helped you here, I like to help people, I have a list of what to expect,  a small taster of what you should expect. Approach with caution.  Make sure you have all the information to make an informed decision.

ESTATE AGENT FEES

Its not the commission rates that is the issue here.  (Although VMOVE do offer fixed fees) It is the little added extra overlooked by homeowners who concentrate on the percentage.  Three little letters can cost a whole lot of money...VAT.  Remember it may be a 1% fee or even a 1.5% fee, but have they disclosed the full cost including the VAT.  A 20% rise on top isn't insignificant.  £200,000 home at 1.5% = £3000 plus VAT of £600 - TOTAL COST £3600. 

MORTGAGES - EXITING

Forget your introductory discounted rate or initial FIXED rate these are great value at the moment.  Are you selling and leaving your mortgage company?  look out for Mortgage Exit fees, Administration fees, and the fees to repay the loan in full if you are still in your Fixed/Discounted initial term.  Just the repayment of the mortgage can be as much as 5%.  That's a whole £5000 for a £100,000 mortgage.  Timing is crucial here.  

Can you wait until your fixed period expires?  

Try porting your mortgage, be aware that this may mean an additional mortgage amount - this may mean unfavourable fees as you are already a customer and locking your mortgage with a company with stepped end dates = recipe for disaster!  I have done this myself.  ASK me about it.  5 house moves = 6 rate end dates for me.  This was a mistake I made, from renovating and moving on in quick succession.  Don't shy away from this though, if moving is right just make sure you budget properly. DO YOUR HOMEWORK!  

MORTGAGES - ARRANGING

Are you a first time buyer or even just moving your mortgage?  It is important to shop around.  You can reserve a great mortgage rate even if it may be 3 months away until you need it. LOOK carefully before you make your choice.  A cheaper fee, can mean a higher arrangement fee?  DO YOUR SUMS!  If you take out a 3 year fixed at 3% but an arrangement fee is £1200 is it cheaper over the 3 years to just go for 3.25% and forgo the fee.  FIND OUT!!  Your mortgage adviser should be able to tell you this.

PRICE

Everyone wants the most money for their house, the price you actually sell at is crucial.  Be realistic.  If money really is the most important factor you have a decision to make.  Is it best to accept an offer at £5000 below your asking price or hold out for the full amount?  WORK IT OUT.  If you hold out for the asking price you may still be on the market in 8-9 months.  How much money will this cost you in Mortgage payments, bills for 8-9 more months?  I bet its more than £5000.  (if you are on the market for that long - please talk to your agent.)

Budgeting is very important.  Outline your costs.  Do a spreadsheet. Get quotes.  Only then, can you really know what you can accept as a realistic offer on your property.  Only then can you truly understand what you NEED.

These are not the only hidden costs. Ask us.  There are many more lurking, ready to rear their ugly heads when you are most financially vulnerable.  

We understand how easy it is to get carried away with your future plans you overlook this very important aspect to buying and selling.  We understand this so much that we are sponsoring a WEEKEND dedicated to just this:

Join us to ensure that you can make an informed decision & for lots more:

EXCLUSIVE DISCOUNTS on the day along with help with Help to Buy, Help with getting your house sold - Home Staging.  Speak to a Mortgage Advisor without having to book an appointment to ask questions.  Learn about Timeframes for selling, Current Market Trends, Key Mortgage Facts, Insurance issues whilst moving on all your belongings, Santander will be there too to help with Direct Debits changing and mortgage enquiries.  PLUS:  Atlas removals and local solicitors and conveyancing firm - Baines, Bagley Penhale with Marsh and Co.  - Bring your questions, lets educate the masses.  

We even have a FREE PRIZE DRAW.  One lucky winner will get a personalised illustration by local artist Jack Knight.  He can draw you or a person of your choice and you can use it on your social media sites.  Don't want one, would make a great Christmas Present for someone, or even a pic of your cat!  (He's great at cats)



NOVEMBER 2nd & 3rd 10am - 2pm, Rays Court, Lancaster, LA1 4NT

We want to make sure that you feel in control of your sale/purchase.  This weekend is for you.  Bring along a photo of your house, and get free home staging advice.  Been on the market a while, let us help you get that sale.  

Come and see what all the experts in your area do.  We are all dedicated and would love to meet you.  Want to know more? Visit: http://www.v-move.co.uk/about-us/ 







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