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- Valuation
fee, budget £100-500
A valuation fee, often depending on the
property price, will be charged by the
proposed lender.
- Survey
£50-300
It is worth commissioning your own survey.
There are different levels of detail you can
specify from a simple, relatively inexpensive
basic report to full structural surveys and
specialist reports, which cover trees,
electrical systems, damp, and other
conditions. You should consider commissioning
a full structural survey - especially if the
property is old, unusual construction or could
be in need of repair.
- Booking
or processing fee
When you apply for a mortgage, we will ask you
to pay a processing fee.
- Completion
or arrangement fee, budget £200-400
An arrangement fee is often charged once the
mortgage is complete. This is usually added to
the loan.
- Broker's
fee
These are typically up to 1%.
- Mortgage
Indemnity Guarantee
The lender's insurer can charge a Mortgage
Indemnity Guarantee (MIG) fee if the loan
amount is over 75% of the property valuation.
Some lenders will pay this for you if the
Loan-to-Value is less than 90%. The fee can be
added to the mortgage or paid separately.
- Legal
fees, budget £500-£3000
When you purchase a property and apply for a
mortgage, or if you are re-mortgaging, you'll
need a solicitor or licensed conveyancer to
carry out the legal work for you. You'll also
need to budget for necessary land registry and
local authority searches, often referred to as
disbursements. Ask for a quotation beforehand.
- Stamp
duty
This is a government tax on property costing
more than £60,000. This will vary depending
on the value of the property.
1% of purchase price between £125,001 - £250,000
3% of purchase price between £250,001 - £500,000
4% of purchase price over £500,001
- Mortgage
administration fee
Once your mortgage is active you may be
charged an administration fee if you require
further services such as additional loans or
changes to your mortgage deeds.
- Buildings
insurance
You should insure your home for at least the
full rebuilding cost against damage caused by
major risks such as fire, flood and
subsidence. You could extend your level of
cover to include full accidental damage. The
amount may not be the same as the market value
of the property.
- Mortgage
protection
If you become unemployed, or an
accident or sickness prevents you from
working, this cover ensures that your mortgage
payments are covered. You can usually extend
your cover to include other regular expenses
such as endowment premiums and utility bills.
If you're self employed, you won't be able to
claim unless you've actually stopped trading.
And workers on short-term contracts may not be
able to claim until they have been in the same
job for a year with the contract renewed
within this period
- Life
cover
Most people arrange life assurance cover to
pay off the outstanding mortgage loan if they
die. If your mortgage is backed by an
endowment policy, life cover is automatically
included, but you can easily add it to a
pension backed mortgage or take out a separate
policy
Ready
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