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How to move house without breaking the bank

Moving home ranks behind only divorce and bereavement on the list of life's most stressful activities - and it's also one of the most expensive...

Furthermore, it's about to get pricier.

Although the Government announced at the end of April that the introduction of Home Information Packs (HIPs) is to be delayed, the launch has only been put back two months.

Come 1 August, anyone selling a home with four bedrooms or more will have to provide potential buyers with a HIP at a cost of up to £400. Smaller properties will be brought under the legislation over the following months.

Although some of this £400 will be money that sellers will save when they come to buy their next property, around half of the price of a HIP will be accounted for by the cost of an Energy Performance Certificate - a new and additional item to add to your home moving bill.

But while moving home will always is expensive, there are plenty of ways to save money. With some planning you can cut hundreds or even thousands of pounds off the bill.

Estate agent fees:  Check everything, and then check again.

One of the biggest costs of moving is estate agent fees. Agents typically charge upwards of 1.5 per cent of your sale price, plus VAT, and will usually charge more if you market your property through more than one agent.

 If you are using an agent to sell your property, make sure that you check commission levels before you commit. Some agents may offer free HIPs. They are likely to pay for this by charging more commission, so check to see if you really will be saving money.

Selling your home via an online agent is cheaper than on the high street. Halfapercent.com charges 0.5 per cent commission, and houseladder.co.uk charges no commission. If you can find a buyer for your property without marketing it, perhaps via a friend or relative, you'll save money on agent fees and won't have to buy a HIP.

Solicitors: Beware oversubscribed firms

Solicitor fees for selling and buying will usually be over £1,000. But there are cheaper deals to be found on the internet. Beware that the cheapest firms usually take on more business than they can manage, and may be slow and inefficient.

Geoffrey Negus, of the Solicitors Regulatory Authority, says the best way to find a reliable solicitor is to get a recommendation from a friend or relative. But if you have to do your own research, it's often worth sticking to a solicitor in your local area, Negus says.

Although conveyancers outside of the South-east will be cheaper, doing all your paperwork by post can take longer, and means you can't simply nip round to the office to sign a document if you need to.

"If you've got the time, don't just ring around to find the best solicitor, go to the firms in person, and talk to them," advises Negus. "If you go into a firm and hear the phone ringing endlessly, that's a bad sign - that could be you eventually."

The evils of stamp duty

Stamp duty is usually the biggest single cost of moving home, and if you're buying an expensive property, the bill can run into tens of thousands of pounds.

Drew Wotherspoon, of mortgage broker John Charcol, says that if you're looking to buy a property valued at around any of the stamp duty thresholds of £125,000, £250,000 or £500,000 - you could save thousands in tax by buying a slightly cheaper property.

"The main stamp duty threshold to watch out for is £250,000 - where the rate jumps from 1 to 3 per cent," he says. "That means you can end up paying £5,000 more in tax, simply because you bought a house for £251,000 rather than £249,000.

"The next threshold is at £500,000, where the rate goes up from 3 to 4 per cent. But if you're spending that much on a house, then the extra few thousand pounds may not be such an issue."

Stamp duty is not payable on properties worth less than £125,000 - although there are a diminishing number of properties in this price bracket.

Survey: You can probably get away with just a basic

A basic survey will cost you about £250, while a full structural survey is likely to cost upwards of £600. "If money's tight, and your property is relatively new, you can probably get away with only having a basic survey," says Wotherspoon.

He adds that some mortgage providers will offer this for free, or give cash back for a basic survey. "But if the property is older, it's worth spending more to get the full survey done."

Moving day:  Do it yourself, lazy!

Employing a removal company to pack and move your possessions typically costs upwards of £500. You can save money by packing and moving yourself. Hiring a van for the day should cost you no more than £200.

If you are using a removal company, make sure you ring around to find the best quote. Websites such as moveme.com provide a list of removal companies along with user reviews.

Changing address: Remember or it will cost you

Making sure to change your details when you move might seem obvious, but failing to do it, and to time it correctly, can cost you money.

Websites such as iammoving.com will email all the people who need to be informed in one go.

Forgetting to change the address on your credit card will mean you won't get your statements and could end up being charged for missed payments.

Mortgages: The best deal is not always about the lowest rate

Making sure you get the best mortgage deal is an easy way to cut costs when you're moving home. David Hollingworth of London & Country mortgages says the market is incredibly competitive, with some attractive deals for borrowers.

Bank of England base rates are currently at 5.5 per cent and are expected to rise at least one more time before they reach the top of the current cycle.

However, Hollingworth says the best two-year fixed rate mortgages are priced well below the current base rate. GMAC, for example, launched a two-year fixed rate deal this week, priced at 5.25 per cent for re-mortgages.

Drew Wotherspoon of mortgage broker John Charcol warns that finding the best deal is not just about getting the lowest rate. Many mortgage providers will offer free valuations, surveys or even legal services.

However, it's important to watch out for high arrangement fees and also higher lending charges if you're borrowing more than 90 per cent of the value of a property.

"Remember, lenders don't give it away," says Wotherspoon. "So anything that's 'fee-free', will probably be priced into the rate you pay. More often than not, if you take the hit on fees upfront you're likely to be better off over the long-term."

Hollingworth says it is also worth timing your move with the expiration of your previous mortgage deal. If you move while you are still tied in, you may have to pay a hefty exit penalty to redeem your mortgage.

Source: The Independent