Understanding Costs

Buying a new home is one of the most important investments you’ll make, meaning budgeting is an essential element of a stress-free move.

To help you plan your finances, we’ve pulled together a handy guide outlining the fees you can expect to pay along your home-buying journey.

Deposit

Most mortgage lenders used to ask for a minimum 10% deposit on a new home, but with the government-backed Help to Buy scheme an Erris Home could be yours with only a 5% deposit.

Be quick though – if you are already a homeowner, you will only be eligible to use the Help to Buy scheme until April 2021, when the scheme will only be available to first-time buyers until April 2023. Learn more about Help to Buy here.

Stamp Duty

If you are first-time buyer and your new Erris Home is under £300,000, you won’t need to pay stamp duty at all.

If you are already a homeowner, you can expect to pay stamp duty when buying a new home over the cost of £125,000. Use this handy Stamp Duty calculator see how much you can expect to pay.

Valuation & Survey Fees

Your mortgage lender will ask to value your new home before they lend you any money – this is called a valuation. Although some lenders will offer free valuations, many others will charge and you can expect to pay between £150 - £200 based on your home’s value.

Be aware that when purchasing a new-build Erris Home, you do not need to hire a surveyor as the home will have already undergone rigorous checks and comes with a 10-year Premier Guarantee warranty. However, some of our customers do wish to conduct surveys on their new homes simply for extra peace of mind – if you wish to do the same, we’d recommend budgeting an extra £250-£600.

Solicitor Fees

You will need a solicitor to carry out the legal process of buying a new home (and of selling your current home if you are already a homeowner). Your solicitor will assist in the legalities of buying your new home including everything from Stamp Duty and Land Registry to conveyancing and everything in between. Costs will vary depending on whether or not you have an existing home to sell, but you should expect fees to be between £500-£1500 plus VAT.

Some mortgage lenders also charge a fee for transferring your mortgage money to your solicitor – the usual cost for this is around £40-£50.

Estate Agent Fees

If you have a property to sell, estate agent fees will be an extra expense on top of buying a new home. These fees depend on the estate agent you wish to use, but these fees usually range from 1-3% of the sale price plus VAT.

Is the thought of selling your current home giving you a headache? Let Erris Homes take the weight off your shoulders with our stress-free Smart Move scheme! We’ll take care of everything from agreeing a valuation and marketing plan for your current home to negotiating the sale and contributing to estate agent fees.

Insurance

Your mortgage lender will ensure insurance is one of your key priorities when buying a new home, but this doesn’t mean you have to buy insurance from them. Shop around for a deal that works for you and your family.

We would also recommend content insurance to cover the cost of repairing and replacing treasured household items, and you’ll be able to bag a bargain when combining this with building insurance too!

Removal Costs

Unless you’re recruiting friends and family to help you move into your new Erris Home, removal costs can usually be anywhere from £300 - £2000 for professional removers. 

If you're a first-time buyer, it might be worth the extra effort to move yourself for free or use the van of Mum and Dad!