Costs To Buy
So you have got the mortgage sorted out and the deposit is saved, there’s nothing else to pay is there? Below is a summary of the main items that you will normally need to pay when buying a property:
You will normally have to pay the lender a fee to arrange a mortgage valuation on your prospective new home. This report is done for the lenders benefit, to confirm the property is adequate security for the mortgage.
Other more detailed reports are available at extra cost for instance a Homebuyers Report or Full Building Survey.
Call us and we can give you more information about these.
Arrangement or Booking Fees
Arrangement, Product or Booking Fees are charged on all types of mortgages i.e. fixed , tracker, discounted etc.
These can vary scheme to scheme (and lender to lender) and are usually between zero and £999.
Lower rates tend to have higher set up fees which can actually make them less cost effective overall, depending upon the mortgage size. This is something we will weigh up for you when we talk through the options with you, prior to making a recommendation.
Mortgages are available up to 95% of the purchase price of the property, although many more schemes, with better pay rates are available with a larger deposit.
It isn’t uncommon for the rate on offer to reduce by between a 0.5% and 3% depending on the size of the deposit.
Schemes are tiered usually at 60%, 70%, 75%, 80%, 85%, 90% & 95%, with progressively less schemes available (and at higher rates) the higher percentage you need to borrow.
Buy to Let mortgages often need considerably higher deposits of between 20 to 25%.
Higher Lending Fees
Most lenders are happy to lend up to 75% of the purchase price or valuation of your home. If you need to borrow more than this, the lender may want to take out an insurance policy known as ‘Higher Lending Charge’. This is arranged by the lender for their own benefit.
At the time of writing the Government has introduced several schemes that negate this and where there are costs for the extra cover they are usually invisible to the borrower and covered by the lender.