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Financing the purchase of a new home
It's more than likely you will be moving to a new home and this incurs all the usual financial aspects such as deposits, mortgage arrangement fees, stamp duty, land tax, survey and conveyancing fees. Refer to Buying your new home for a guide to moving costs.
Conveyancing
Whether you're selling or buying, you will need to employ a professional to look after the important legal aspects on your behalf as every step must be followed to the letter. Costs vary widely and the cheapest may not be the best. Some mortgage deals include free conveyancing up to a certain value, which can be useful if you want to minimise your upfront costs.
Tesco Property Market has linked up with MyHomeMove, one of the largest independent conveyancing providers in England and Wales to provide a comprehensive legal service to owners of homes in England and Wales. You can get an immediate online conveyancing quote for buying or selling and this will remain valid for 30 days.
Mortgage penalties
Check your mortgage's small print to find out what charges might be applicable if you are settling your loan early.
Redemption penalty
When moving house, you will be paying off your existing mortgage and taking out a new one. Repaying some or all of your existing mortgage may incur early repayment charges (also known as redemption penalties) so check your mortgage small print. This can be as much as several months' worth of mortgage payments as a penalty for redeeming earlier than your mortgage agreement. However, if your mortgage is what's called 'portable', you can transfer this loan to the new property.
Mortgage Exit Administration Fee
Pay off a mortgage and you'll be charged a mortgage exit administration fee (MEAF) that covers the admin costs associated with releasing a mortgage once the capital's been paid. This is either applied when you pay off your mortgage early or at the end of the original mortgage term.
Removals
Think about the cost of removals. Hiring a van is a cheaper option if you're only moving a short distance from a flat or small house. However for anything larger or for long distance moves, it makes practical sense in terms of time and labour to hire a professional removals firm. This can cost anything up to £1,500 plus additional packing costs.