10 Sep 2020 • 3mins • Fonk

How much do I need to save to move house?

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Thinking of moving house? Whether you’re renting or buying, here’s what you’ll need to cover.

Tenancy deposit

Before you rent a new home, you’ll need to put down a lump sum called the “tenancy deposit”.

This is normally around one to three months’ rent and covers the cost of any missed rent payments or damage to the place while you’re living there. Your landlord should put the money into the Tenancy Deposit Scheme so it’s held fairly. Barring any major issues, you should get your deposit back when you move out.

Mortgage deposit

If you’re thinking of buying your first home, you might already be aware of needing a mortgage deposit. This will probably be the biggest thing you’ll need to save for.

The deposit is usually a percentage of the amount you want to borrow –if you’re looking to borrow £300,000 and your mortgage lender asks for a 10% deposit, you’ll need £30,000 in cash to put down.

This can seem super daunting, but setting a saving Goal and spending smart will help you get there. And, once you’re a homeowner, it’ll be totally worth it.

If you already own your home, you can use the amount you’ve paid off your mortgage for the deposit on your new house – once you’re on the property ladder it’s much easier to move around.

What other costs are involved with moving home?

Survey fees: these range from £250 to £600+, depending on the type of survey you need.

Valuation fee: checks that the home you want to buy is worth the amount you’re going to pay for it, and costs anywhere between £150–£1,500.

Stamp duty: the amount you pay depends on how much your property costs and where in the UK you’re buying. There are also lots of exemptions, so you might end up not paying at all – hooray!
Leasehold costs: your house or flat might charge fees for ground rent and building maintenance.

Movers’ costs: you may need to hire a van or removal company, which could be anything from £40 per hour to a £1,000 set fee.

Insurance: home and contents insurance cover the cost of repair or replacement, for example if there’s a flood, or you’re burgled.

How to save for moving home

It’s impossible to say exactly how much you’ll need to move, but working out a ballpark number means you won’t be completely flummoxed when it comes to it.

Make a list of all the things you think you’ll need to pay for and how much you think they’ll cost. Then why not create a saving Goal in the Yolt app and build up your savings gradually? You’ll be able to see your savings grow and that new home move ever nearer.

Want to know where you stand with the state of your savings? Read our guide to self-assess your savings.