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Budgeting for your move

Ross McKenzie

Budgeting for your move... From deposits to moving costs


Moving to a new home involves many expenses beyond just the purchase price. Creating a detailed budget early in the process can save you from financial surprises and help make the transition smoother. In this guide, we’ll break down the primary costs involved in moving, from deposits to moving day expenses, and offer practical budgeting tips to keep everything on track. Remember -it's always worth speaking with the professionals too!


1. Initial Costs: Deposits and Mortgage Fees


Buying a new home often requires up-front payments before the actual purchase, including:


  • Deposit: The largest upfront cost is typically the deposit, usually around 5-20% of the property’s purchase price id purchasing with a mortgage Having this saved ahead of time is essential, as it determines your mortgage amount.

  • Mortgage Arrangement Fees: Some lenders charge arrangement fees, often ranging between £500-£1,000. These can sometimes be added to your mortgage, though this might increase your monthly payments.

  • Valuation Fees: Your lender may also require a valuation survey to confirm the property’s value, costing around £150-£1,500 depending on the property and lender.


2. Legal and Administrative Fees


Once your mortgage is arranged, additional costs for legal work and documentation come into play:


  • Conveyancing Fees: Hiring a conveyancer or solicitor is essential to handle the legal side of the transaction, typically costing £800 - £2,000. This fee may vary based on property type, location, and complexity.

  • Stamp Duty: Stamp duty rates (or Land Transaction Tax in Wales) vary based on property price and your buyer status (e.g., first-time buyer, buy-to-let, second home). Make sure to account for this as it’s often one of the largest expenses that buyers forget to budget for.

  • Search Fees: Your solicitor will conduct searches on the property (local authority, environmental, etc.) to ensure there are no legal or environmental issues, costing around £250-£300. Open Moove will make some suggestions for you when the time is right, when using our app.


3. Moving Day Expenses


Beyond the costs of purchasing the home itself, the moving day brings its own set of expenses:


  • Removal Services: Hiring a professional removal company can simplify the process, though costs vary widely depending on distance and volume of items (typically £500 - £1,500). Consider additional services like packing and materials, which may add to the cost.

  • Storage Costs: If there’s a gap between leaving your old property and moving into the new one, storage fees may apply. Storage rates depend on location, unit size, and rental duration.

  • Utilities Setup: Setting up or transferring utilities like electricity, water, and gas may require deposits or connection fees. Check with providers in advance to understand these costs. Open Moove will help you when the time is right by offering the services of some great providers.


4. Unexpected and Miscellaneous Costs


Moving often involves surprise expenses. Building a contingency fund can prepare you for these:


  • Repairs and Maintenance: Once you move in, there may be initial repairs or small modifications needed, from fixing a leak to redecorating.

  • Furniture and Appliances: Consider the cost of any new furniture or appliances that might be required. Set a budget for these items to avoid overspending.

  • Insurance: Buildings and contents insurance might be required by your mortgage lender and is an important safeguard for your new home. Premiums vary, so compare quotes to find the best coverage for your needs.


Practical Tips for Budgeting


  • Set a Realistic Budget: Estimate all the costs outlined above and add a contingency of around 10% for any unexpected expenses.

  • Compare Quotes: Get multiple quotes for removal services, storage, and other key services to ensure you’re getting the best value.

  • Track Your Spending: Keep a running total of costs as they come in to stay aware of your budget and avoid surprises.


What Open Moove Suggests Next


Open Moove recommends these next steps to stay on top of your moving budget:


  1. Finalise Your deposit and financial readiness: Ensure your deposit and other funds are set aside and readily accessible when needed.

  2. Consult with a Mortgage Advisor: Talk to an advisor about the full cost of your mortgage, fees, and repayment structure to ensure it fits your budget. Use our marketplace to find your best fit.

  3. Create a moving day checklist: From removal services to utility transfers, having a checklist will keep you organised and help you monitor each expense as it arises.


By preparing your budget early and understanding all potential expenses, you’ll be well-prepared for a smoother, more financially secure move.



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