Moving house can be an exciting time in your life. Maybe you’re moving because your family has grown, maybe it’s to do with a new job or possibly it’s just simply time for a change.
Whatever the reason, amid all the excitement is the sadly inevitable stresses that come with moving house – not least the costs involved.
According to Which, the average cost of moving home is approximately £12,000, so you will need your finances in order before moving.
And with the cost-of-living crisis causing house prices to drop for a fifth straight month in the UK in January 2023, it is an uncertain market.
But here are the things to consider when moving home.
Deposit and mortgage fees
When buying a house you need to save up for the deposit in order to get a mortgage from the bank.
Most banks will accept a 5% deposit but it can be difficult to get a mortgage at this rate. Usually a 15% deposit will increase the chance of you having your application accepted. Of course, if you are moving home then the equity from your first house can be used towards the new deposit.
There are also mortgage fees to account for, which can be added to the value of your mortgage, while there is also the cost of stamp duty to consider.
In England and Northern Ireland, you do not need to pay stamp duty on the first £250,000 of your property – but anything above that will see stamp duty needed to be paid, and will most likely be your second-biggest expense after the deposit.
On top of this, there are conveyancing, valuations, and surveys to pay for as well as estate agent fees.
Removal fees and insurance
It is not just the deposits and stamp duty to consider when saving money to move home.
You have the keys to your new property but now you have to think about how to get all your furniture and belongings to the new residence.
Most house moves are likely to require the use of removal companies to do the heavy lifting and move the big furniture. While many moving companies mightn’t charge too much, it’s still an extra cost to worry about.
Or it might be that you have to hold some belongings in a storage unit until the house is ready to move into.
House insurance will be required for the property, while you should also take out contents insurance too.
Other considerations
If you have pets and are unable to get a family member or friend to care for them while the move is going on, then you need to budget for the costs of kennels or catteries.
You can also pay Royal Mail to have your post redirected, something that is very much recommended to avoid the stress of wondering if you’ve missed an important letter.
It might even be that you are keeping your previous property and are planning to rent it out. This might involve letting fees, while it is important to understand tax when it comes to renting the property out.