It is often said that moving home is one of the most stressful events in anyone’s life.
Whether or not that is true it can certainly be among the most expensive. At Continuum we are looking at three ways of reducing the costs of moving home.
The high cost of removals
Brexit continues to have strange economic consequences. With European HGV drivers becoming rarer, there is a post-Brexit lorry driver shortage, with employers like Tesco so desperate they are offering drivers £1,000 signing on fees. Several operators of removals firms confirmed they had been forced to put up prices by 10% to 25% and were struggling to keep up with demand because of driver shortages.
There have also been shortages – and consequent price increases – with cardboard boxes and packing tape because of difficulties in importing supplies.
It all means that moving day can be more expensive than you bargained for. A man and van might be more affordable if your home is small, but if yours is stacked high and you want the security and lifting power of a professional company, the only way to cut costs might be to avoid the Friday moving rush and see if you can get a better rate for another weekday.
The high cost of stamp duty
The stamp duty holiday provided a shot in the arm for the property market, a desperate need to beat the deadline, led to the house market having an energy that it has not seen for many years, if ever.
The return of Stamp Duty Land Tax (SDLT) may mean a slowdown in the market and just possibly a return to having time to think and negotiate. It will certainly mean some extra costs when you buy a new home.
From October 1, the SDLT thresholds will be the same as they were before 8 July 2020, when the stamp duty holiday began, at £125,000 for residential properties. You can use HM Revenue and Customs’ Stamp Duty Land Tax calculator to work out exactly how much tax you’ll pay.
You cannot escape this tax, and your solicitor, agent or conveyancer will usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. However, they will also be able to help you see if any discounts apply. First time buyers can pay less or a reduced sum if the purchase price is £500,000 or less. You may also be eligible for this discount if you bought your first home before 8 July 2020.
The high cost of property
Low mortgage rates have helped boost house prices across the country. Thanks to the popularity of working from home, proximity to work and even to commuter links has become less important, meaning that the boost has reached even those areas where house prices were traditionally low.
This may have meant that the traditional property hotspots such as central London may actually have seem some house price falls, but areas such as the North West and Wales where prices were at their lowest have seen some levelling up.
It all means that wherever you are buying, you will need to ensure that you have the very best mortgage for your needs.
Finding the best mortgage is not simply a matter of finding the lowest rate, although this is of course an important factor. You need to ensure that the fees don’t hide any hidden costs, that the terms and conditions give you the freedom you need and that your mortgage is right for your particular circumstances.
A mortgage that is right for you
We search the entire mortgage market to find a solution to your needs. Contact us to arrange an appointment with a Continuum mortgage expert
At Continuum we can search the entire market to find the mortgage product that is right for you. Not only can we compare all the offers from the major lenders and from specialists, we can access products that are never advertised and are only available via advisers like ourselves.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable mortgage product, you should seek independent financial advice before embarking on any course of action.
Your home may be repossessed if you do not keep up repayments on your mortgage.