When it comes to moving house, there are more costs to save for than you can imagine, from deposits, solicitors fees and surveys, to the price of using a removal company. The average cost of moving house can run into thousands.
Budgeting for these spiraling costs will help you reduce the stress of moving house, so we’ve listed the top five easy ways to budget so you can save towards the costs of moving home.
The true costs of moving home
According to Which research about the true costs of moving house, mortgage fees alone can range from between £500 and £1,000, valuation fees between £200 and £600, house surveys between £300 and £600, conveyancing fees of up to £1,500. A removal company will set you back between £400 and £1000, not to mention packing fees on top starting at £150. So, you are looking at needing to save around £5,000 to comfortably cover the costs of moving.
To start with you will need a deposit of at least 10% of the house value, and based upon the average UK property price of £226,071 (UK House Price Index) you’re looking at around £22,000 based upon the average UK property. If the cost of the home is more than £300,000 then you will be looking at stamp duty on top starting from £5,000 for a £300,000 home.
1.Renegotiate your mortgage every three years
Remortgaging can save you thousands that can be put back into paying off your mortgage or saved towards the costs of moving again. By choosing the right provider you can offset some of the mortgage fees to the bank.
2. Shop Smart
A simple swap to Aldi or Lidl could save you hundreds of pounds a month on your shopping bills. You would be surprised how much you can squirrel away for your home moving needs by slicing £50 off your weekly shop, you will be saving £2,600 a year.
3. Sustainable Living
- Wash clothes less frequently and on a 30 degree wash when required, to save money and the environment.
- Put a jumper on during winter to avoid turning the central heating up. Reducing room temperatures by just 1ºC can cut heating bills by up to £75 a year in a typical home, according to the Energy Saving Trust.
- Buy five less coffees a week while out and about and see the savings add up. According to Santander’s latest ad with Ant and Dec, you can shave two years off your mortgage simply by buying less coffee.
- Mend and make bits instead of buying new. If you can live for a year without buying new clothes, opting to mend and sew them yourself, you can save thousands of pounds. Based on a clothes budget of £200 a month, you could save yourself £2,400 towards your house move.
4. Swap Energy Providers
Which? research reveals you could save up to £169 per year by switching from the priciest Big Six standard default tariff on the market to the cheapest available deal. There are lots of deals out there, you just need to shop around to find the best deal for you.
5. Declutter and sell
Round up all your old clutter and list it on Facebook Marketplace or similar selling sites. Not only will you be decluttering, you’ll have less to pack when it comes to the move, and you’ll be making money to put towards your moving fees.
And lastly, invest wisely
Once you have accumulated a pot of money towards your savings, if you have time on your side, you might wish to invest it into an ISA to maximise the saving benefit. Your deposit, for example, can grow while you wait for the go ahead on the move. However, be sure to consider an easy access ISA if you wish to withdraw money before it matures.