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GB News - Expert comment on hidden costs of selling and buying properties

ended 24. February 2024

A journalist on GB News is looking for property experts to discuss the hidden costs that may pose a burden to first-time homeowners and buyers.

They are looking for answers to the following questions:
Are there any costly policies set to come into effect in 2024 that could affect first-time buyers or sellers?
Are there hidden costs or financial traps that can catch out sellers putting their home on the market?

The article will be published on the GB News website.
 

4 responses from the Newspage community

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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
Impacts of 2024, are yet to unfold for the house buying/house selling process, however increases in mortgage interest rates, will still impact on mortgage affordability and stress testing. Expect stagnant wage growth, which does not keep pace with house price inflation, making it harder for home ownership - government initiatives will be needed to address this. As for the hidden costs, there could be unforseen repair costs to properties being sold/purchased, and any energy efficency changes to properties will incur costs.. Estate agent fees, may include hidden charges for marketing, photography, or floor plans can all add up. Legal fees can also escalate, due to complex title issues or slow communications, which can add to the financial burden of selling and buying.
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Editor
Ben Perks
Managing Director at Orchard Financial Advisers
If First Time Buyer's engage with a trustworthy and reputable Mortgage Broker there should be no hidden costs or nasty surprises. The Broker will not just cover their mortgage options and the best products available but they should discuss all costs and hold the clients hand throughout the process.
Whilst the Broker will always do their best to indicate what the costs will be, sometimes they can come in a little higher though. Issues with the subject property could require additional surveys or reports or there could be complex title issues that need further legal work for example. Whilst uncommon, these things can occur so it is adviseable to always have a little extra money for such expenses.
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Gary Bush
Financial Adviser at MortgageShop.com
2024 currently has the hidden costs that the UK general public now thinks that mortgage rates are on the decrease but sadly the lenders, including those on the High Street, have suddenly hand brake turned and all come out increasing their rate offerings - despite a better-than-expected inflation rate, and a Bank of England base rate hold being released on them. The monthly cost of these rates increasing will cause much punishment to households including those with their rates renewing. Mortgage applicants are often trapped in an application process that feels like cat and mouse in trying to lock down the best rate for their circumstances before they get removed by lenders often with only a few hour's notice. As far as policies for homeownership the UK very much needs a revamp of the only government-backed property scheme, Shared Ownership, as Housing Associations are wielding some truly awful conditions within their lease agreements that need intervention across the board.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
There are no hidden traps but grasping the additional costs is a must as these can add up. Stamp duty, conveyancer costs and if you're selling a house, paying your estate agent. That plus your deposit, Work those out before getting too carried away and you are generally good to go.