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This page is for mortgage and re mortgage |
 This is a comprehensive information store on mortgages, aimed at helping anyone thinking about getting a mortgage or changing their mortgage to arm themselves with useful knowledge. A mortgage is normally the largest investment you'll make in your life, so you make sure you carry out as much research as possible. This site includes a sections on mortgages that break down the different options that you have when you look for a mortgage. Recommended mortgage providers for the UK: For a comparison of mortgage broker quote providers,
visit Golden Mortgage
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The repayment mortgage means that each month you make a payment to your lender consisting of both the interest on your loan and a repayment of part of the capital. Thus, your monthly repayments will be higher with an interest-only loan. You are reducing your debt every month, which should give you peace of mind. You will need to arrange life assurance, so that should you die before the end of the term your mortgage will be paid off.
An interest-only mortgage is more complicated. You need to make monthly payments of interest to your lender, on premiums for life insurance, and into an investment vehicle that should result in your outstanding capital being paid off at the end of the term. Now, when you add all these payments up, you will find that interest only payments are slightly cheaper than a repayment mortgage, but you get more risks for this. You get no guarantees that your investment plan will pay off your outstanding mortgage debt.
There are three main types of investment vehicles to be used to pay off the mortgage capital. The endowment mortgage is where you invest with an insurance company in an endowment policy. This could be a "with profits fund" or a "unit-linked" policy. These policies will grow, hopefully enough to pay off your mortgage leaving you with a lump sum. You could also be left with a shortfall though.
A pension mortgage is where you use the 25% lump sum from your pension fund to pay off the mortgage. You can't get hold of this money until you are 50, and you are not guaranteed that it will be enough, but it is very tax efficient, as you get your highest level of tax relief on your contributions.
Finally, an ISA mortgage is where you pay into an Individual Savings Account (ISA) and hope the fund grows enough to pay off the mortgage. Again, you could have a surplus, but again there are no guarantees. Also, the tax free nature of ISA's is not guaranteed and ISA's may not even exist in a few years time.
The variable rate mortgage alows the interest rate can go either up or down. This means that the interest rate could stay the same for many months, or may change on numerous occasions over the course of a few months. In general, the standard variable rate (SVR) charged by the mortgage lender will mirror the Bank of England Base rate, so you should monitor that rate to suggest what your mortgage rate may be.
You should be wary of a lender with an unusually high SVR. This is especially so, in view of the incentives offered by borrowers to encourage them to take on a variable rate mortgage.
- They could offer a discount for a few months up to a period of a few years. At the end of the period you will revert to the SVR, which can be a shock.- They may offer cashback, a sum of money towards the fees or charges you have to pay out to get a mortgage. It is likely you'll pay for this with a higher SVR.
- You may be offered specific subsidies for fees or charges.
A Base Rate tracker mortgage is a newer variable rate mortgage, where interest charged is linked entirely to the Bank of England Base Rate, set each month on the first Thursday by the Bank of England's Monetary Policy committee. The rate will usually be at a set level above the base rate (e.g. 1%) for the life of the mortgage.
With a fixed rate mortgage, you are guaranteed to pay a certain level of monthly payments for an agreed period. You can thus budget with a certain amount of confidence as you are protected against rising base rates. The period in which your rate is fixed could be up to 25 years, and as low as 6 months, after which you revert to the standard variable rate for the mortgage.
A capped mortgage is a combination of fixed and variable mortgage. There is
a maximum rate over which you will not be charged for a certain period. If the
SVR falls below the cap, your payable rate follows it down
You should always ask about redemption penalties should you take on a discounted, fixed or capped mortgage. Redemption penalties charge you for paying off or moving mortgages, and whilst it could be during the deal, it may be after the deal has ended.
The basic choice of where to get your mortgage from is between the building societies, the banks, the insurance companies, specialist lenders or intermediaries.
Should you be looking for a traditional mortgage lender with many years of experience in the mortgage markets, then you should try a building society. This doesn't necessarily need to be a large society, you may find that your local society, whilst much smaller, has some good deals and low rates. However, these local societies also tend to only lend on properties in their local area.
Building societies are owned by their members, who put money in with their savings, and borrow money through loans and mortgages. This means that profits go to the members in the form of good deals, rather than to shareholders. This is what is known as mutuality.
High street banks are owned by shareholders, and are beholden to them, rather to their customers. But they are taking more of a share in the mortgage market and have a major advantage in terms of the number of branches that they have around the country. This means that customer convenience is maybe better. Some large building societies have recently converted to banks, so you can still have access to their mortgage expertise.Then there are specialist lenders, who cater for specific parts of the market, such as the self-employed or maybe for people with bad credit. They do not have a high-street presence and operate usually from a single office, thus reducing costs, enabling them to provide mortgages for people for whom there may be little other option. You used to only be able to access the products from specialist lenders through intermediaries or broker, but now you can get a mortgage via the internet or over the phone.
Then, should you want to try and save time and money, you can go to a mortgage intermediary. This could be a mortgage advisor or a financial advisor. They will provide you with an overview of the market, enabling you to compare lenders and mortgages in order to find the best on for you. Intermediaries may be tied to one lender, or multi-tied to a few, or could be independent, in which case you have the whole of the mortgage market open to you. Brokers get paid in commission from the lenders, but they may also charge you up to 1% of the borrowed amount.
The cheapest mortgage and re mortgage can be had if you look round. To get a best online mortgage , shop around and compare each mortgage quote from the different sites,
Some advice on buying and selling your home...
This information applies to England, Wales and Northern Ireland
The first thing you need to do is decide how much you can afford. You will need to look at how much money you have available yourself and how much you can borrow. There are a number of different financial institutions which offer loans to people buying a property, for example, building societies and banks. You should find out if you are able to borrow money and if so, how much (for information on mortgages, see under heading Mortgages).
Some building societies now provide buyers with a certificate that states that a loan will be available provided the property is satisfactory. You may be able to get this certificate before you start looking for a property. Building societies state that this certificate may help you to have your offer accepted by the seller.
Before finally deciding how much to spend on a property, you need to be sure you will have enough money to pay for all the additional costs. These include:-
You should be aware that if you start the process of buying a property and then the sale falls through you may have already paid for a valuation and/or a survey. If the solicitor has started any legal work you may also have to pay for the work done.
You should also take into account the running expenses of the property you wish to buy. These may include:-
You will also have to pay a deposit on exchange of contracts, up to 10% of the purchase price, a few weeks before the purchase is completed and the money is received from the mortgage lender.
There are a number of ways in which you could find a property to buy:-
When you find a property you should arrange to look round it to make sure it is what you will need and to get some idea of whether or not you will have to spend any additional money on the property, for example, for repairs or decoration. It is common for a potential buyer to visit a property two or three times before deciding to make an offer.
A property may be leasehold, which means that the land on which the property is built is not part of the sale. You have to pay ground rent to the owner of the land - who is called the freeholder.
The length of a lease can vary and you should check that the length of the lease on the property you are interested in buying is acceptable to the mortgage lender. You should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
In addition to ground rent on a leasehold property, you may have to pay an annual service charge. This usually happens with a flat. The service charge covers such items as maintenance and repairs to the buildings, cleaning of common parts and looking after the grounds.
If the property is freehold, this means that the land on which the property is built is part of the sale and no ground rent or service charge is payable.
When you decide you would like to buy a particular property you do not necessarily have to pay the price being asked for it by the owners. You can offer less if, for example, you thinks there are repairs to be done which will cost money.
If the property is being sold through an estate agent, you should tell the estate agent what you are prepared to pay for the property. The estate agent will then put this offer to the owners.
If the owners do not accept the first offer put to them by you, you can decide to make an increased offer. There is no limit on the number of times you can make offers on a property. If you make a written offer it will always be made subject to contract. This means that you will not be committed to the purchase before finding out more about the state of the property. If you make an oral offer this is never legally binding.
When your offer for the property has been accepted you will have to consider the following:-
Once the owners have accepted your offer the buyer may be asked to pay a small deposit to the estate agent. This is not usually more than £500. It is meant to show that you are serious about going ahead with the purchase. It is repayable if the sale does not go ahead.
If you have not already begun to arrange a mortgage, you should start to do this now. It should take about three weeks from the application for the mortgage to the formal offer being made by the lender. However, this time-scale may vary.
Whoever agrees to lend the money will want to have the property valued. This is to make sure that the lender could get the loan back if for any reason you stopped paying your mortgage and the house had to be sold again. The valuation will be done by a surveyor on behalf of the lender but you will have to pay for this valuation. The fee will be payable in advance, usually when the you send a completed mortgage application form to the lender.
If the amount of money to be borrowed is more than a certain percentage of the valuation of the property (usually 75-80%), your lender makes it a condition of the loan that you take out extra insurance to cover the extra amount. You pay a single premium to your lender which is usually added to the loan. This is known as a mortgage indemnity guarantee.
The valuation which is done for whoever is lending the money is not a survey. You should consider whether or not to have an independent survey carried out in addition to the valuation. The survey would not only consider the value of the property but would also examine the structure of the property and should identify any existing or potential problems.
There are two levels of survey that you can choose between:-
It is possible for you to use the same surveyor who does the valuation to carry out the survey and this may be cheaper. However, you can use a different surveyor if you wish.
If the surveyor reports that there are some problems with the property, you will have to consider whether you still want to go ahead with the purchase or want to negotiate further with the seller about the price. The surveyor will usually advise you as to how any problems they have identified should be dealt with and the likely costs of this. You can find more useful information about property surveys at www.rics.org/public/ups.
The legal process of transferring the ownership of the property from the present owner to the buyer is known as conveyancing. You should decide who you want to do the conveyancing work. You can choose to:-
Most firms of solicitors offer a conveyancing service. Although all solicitors can legally do conveyancing, it is advisable to choose a solicitor who has experience of this work.
You can use a licensed conveyancer to do your conveyancing. Licensed conveyancers are not solicitors but are licensed by the Council of Licensed Conveyancers.
If you want to find out if a local conveyancer is licensed you can write to:-
The Council of Licensed Conveyancers
16 Glebe Road
Chelmsford
Essex CM1 1QG
Tel: 01245 349599.
Finding out how much it will cost
Before making a choice as to who will do the conveyancing, you should be advised to find out the probable costs of the conveyancing. It is important to contact more than one solicitor or licensed conveyancer as there is no set scale of fees for conveyancing. You should:-
If two or more people are buying the property jointly they will be joint legal owners. The agreement of all legal owners is needed if the property is to be sold, although if there is a dispute an owner can apply for a court order.
As well as the legal ownership of property, there is the beneficial ownership to be considered. This means the shares in the property to which the owners are entitled.
There are two types of beneficial ownership - joint tenants and tenants in common. The most important difference is what happens when someone dies. If a joint tenant dies, their share passes automatically to the remaining joint tenant(s). Tenants in common each have a share in the property that they can dispose of as they wish, either whilst they are living or through their will (known as the rules of intestacy).
Although it is impossible to give a precise idea of how long the legal work involved in buying a property takes, it is possible to offer guidelines. From having an offer accepted to exchange of contracts can take up to seven weeks and from exchange of contracts to completion can take up to four weeks. However, if there are any problems the time taken may be longer.
Once you have instructed the solicitor or, in England and Wales, a conveyancer, the seller’s solicitor or the licensed conveyancer draws up a contract which will eventually be signed by you and the seller. However, before the contract can be signed, your solicitor or licensed conveyancer must make sure that there are no problems with the ownership of the property, rights of way, access, or future developments in the area that might affect the property. This is called ‘making enquiries and searches’. The solicitor or licensed conveyancer makes the enquiries and searches as follows:-
Whilst the solicitor or, in England and Wales, a licensed conveyancer is making the enquiries, you should sort out how you will pay the deposit that has to be made when the contracts are exchanged. This deposit is usually 10% of the price of the home. However, it is sometimes possible to come to an agreement to pay a smaller deposit. If you are also selling a house it is usually possible to put the 10% deposit on the property being sold towards the deposit on the property you are buying.
If you are unable to provide the 10% deposit it is possible to use a ‘deposit guarantee scheme’. Your solicitor or licensed conveyancer can arrange this with an insurance company.
If raising the deposit may be a problem, you should discuss the options with your solicitor or licensed conveyancer.
To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
Alternatively, you could consider borrowing the money for the deposit from elsewhere, for example, from relatives or a bridging loan from a bank. However, the amount of interest you will have to pay for a bridging loan will be high and you should check how much this arrangement will cost.
You should make sure that buildings insurance is arranged from the date of exchange, because once contracts have been exchanged you are responsible for the property.
You may be able to get information on buildings insurance from your mortgage lender, solicitor or, in England and Wales, a licensed conveyancer.
To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
The final contract between you and the seller is prepared when:-
the solicitor (or licensed conveyancer) and you are satisfied with the final outcome of all the enquiries
You and the seller each have a copy of the final contract which you must sign. These signed contracts are then exchanged. At exchange of contracts both you and the seller are legally bound by the contract and the sale of the house has to go ahead.
You should make arrangements for the supply of gas, electricity and telephone service and make sure that the seller is arranging for final meter readings to be made.
Completion of the purchase usually takes place about four weeks after exchange of contracts. On the day agreed for completion:-
The solicitor or licensed conveyancer (in England and Wales only) will usually send their account to you on, or soon after, the completion date.
As a public sector tenant you will probably have the right to buy if you are a secure tenant of:-
You have the right to buy if you have been a public sector tenant for at least two years. This need not necessarily have been in your present accommodation. A tenancy with another public sector landlord can be included in this time.
As a tenant you will not have the right to buy if you are:-
If you are not sure whether you have the right to buy you should check with your landlord which category you fit into.
As a tenant with a right to buy you will get a discount on the price of the property. If you live in a house the discount will be between 32% and 60%, depending on how long you have lived there. If you live in a flat the discount will be between 44% and 70%, depending on how long you have lived there. The discount will not exceed the regional upper limits, which range from £16,000 to £38,000. In Northern Ireland, the upper limit for discount is £34,000.
If you exercise the right to buy and sell the property within three years you will have to repay all or some of the discount.
As a tenant who wants to exercise your right to buy you should try to obtain a mortgage from a building society or high street bank. You could also contact a mortgage broker to see if they can arrange a mortgage.
However, if you cannot afford to buy the property outright you can still buy under the rent to mortgage scheme. Under this scheme you can buy a share of the property and make mortgage repayments on the amount you have borrowed for this. The landlord will retain ownership of the remaining share of the property.
In England and Wales, if you want to apply for the right to buy you should ask your landlord for the Right to Buy Claim Form (Form RTB1) or a house sales application form in Northern Ireland. The landlord must provide it.
As a secure or assured tenant of a registered social landlord, for example, a housing association or a local housing company, you may have the right to buy your home under a different scheme called the ‘right to acquire’. The right to acquire only applies to a limited number of properties, for example, homes built with public funds on or after 1 April 1997.
For more information about the right to acquire, you should contact your landlord or the Housing Corporation who can be contacted on telephone number 020 7393 2000 or by visiting www.housingcorp.gov.uk .
If you wish to buy a home you may be able to borrow money to do this. The borrower offers the home as security against the loan. The lender has a legal charge against the property, that is, if you do not keep up the agreed repayments, the lender can take possession of the property. This is known as a mortgage. The loan will be for a fixed period and the borrower will be charged interest on the loan.
There are several types of mortgage available. The most common are:-
A mortgage could be available from a number of different sources. Some of the available options are:-
If you intend getting a mortgage you should make sure you investigate the different options available. If in doubt, you may wish to consult an independent financial adviser. For help with finding a financial adviser you could consult a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest Citizens Advice Bureau.
Instead of going directly to a lender such as a building society for a mortgage, a broker could be used. A broker may be an estate agent, or a mortgage or insurance broker. They will act as an agent to introduce people to a source of mortgage loan to help them buy a home.
A broker may be used when it could be difficult obtaining a mortgage directly from a lender, for example:-
If you are thinking of using a mortgage broker you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
This information applies to England, Wales and Northern Ireland
If you wish to sell your property you can find a buyer yourself or use an estate agent. Before making a decision you should consider how much each method would cost and how much time you have available. If you use an estate agent, it will be more expensive but the estate agent will take responsibility for advertising, showing potential buyers round, and negotiating a price for the house. If you wish to find a buyer yourself, it will be cheaper but you will need the time to make all these arrangements and deal with any problems.
If you wish to find a buyer yourself, you must first decide what price you want to ask for the property. Many estate agents do free valuations so it is always possible to arrange for two or more local estate agents to provide this information. If you want a formal valuation, you could arrange for an estate agent to provide this but you would have to pay a fee.
In addition, you can find out about the cost of houses locally by looking at local papers, estate agents’ windows and similar houses in the area.
Before deciding on a price, you may wish to consider:-
You should also decide in advance if you are prepared to include any extras in the sale, for example, curtains and carpets. These are known as fittings. A price for these can be included in the asking price or a separate price can be asked in addition.
There are some items that you must sell as part of the house unless you make it clear to the buyer that such items are not included in the sale. These are known as fixtures and include such items as fireplaces and a central heating system. However, in some cases it is not always clear whether something is a fixture or fitting so it would be useful for you to draw up a list of any items you intend to remove or are prepared to sell to avoid problems later.
It is normal practice for a potential buyer to offer a lower price for the house than the seller is asking. You might therefore want to allow for this by setting your price a little higher than the amount you would like to get.
You should first of all find out how much the local papers charge for house advertisements and then draft the advertisement on the basis of how much you want to spend. You could use existing advertisements as a guide to the format and wording. It is also possible to advertise very cheaply in shop windows. It is advisable for you not to give the address but to provide a telephone number instead.
Finally you could consider drawing up details of the house in a similar way to that of an estate agent, for example, giving details of room sizes, community charge/council tax, local facilities and fixtures and fittings. These details can then be given to potential buyers, either before they call, or at the time they view.
If you wish to use an estate agent, you should find out about local estate agents and find out the following information:-
Nearly all estate agents calculate their fees as a percentage of the final selling price of the property, usually between 1½ - 2½%. This is known as the rate of commission. You should also check if the following are included in this percentage fee or have to be paid for in addition:-
If you decide to use an estate agent, the estate agent must confirm the charges and rate of commission that will be made. The estate agent must do this when they agree to act for you.
If you use one estate agent to handle the sale, this is known as ‘sole agency’. It is usual for the agreement to state that commission is only paid to the estate agent if they sell the property. If you appoint two or more estate agents to act together for you in selling the property, this is known as ‘joint agency’ or ‘joint sole agency’. The estate agents involved share the commission when the property is sold regardless of which estate agent actually finds the buyer. The commission for the joint agency agreement is usually higher than for a sole agency. If you appoint two or more estate agents independently, but the commission is only paid to the estate agent who finds the buyer, this is known as multiple agency.
The estate agent first of all visits the house in order to value it and decide on an asking price with you. You may wish to ask more than one estate agent to call and value the house. It is also advisable for you to check the price that the estate agent suggests by comparing it to similar houses in the local paper.
The estate agent will prepare details of the house to send out to people who are interested in buying it. These details will include the number and size of the rooms and all the fixtures and fittings which will be left in the house. The estate agent also arranges for the property to be advertised.
You usually shows potential buyers around the house yourself but, if this would cause problems, for example, if you are out at work or away a lot of the time, the estate agent usually is prepared to do this themselves.
Whether you have arranged to sell the house yourself or you have used an estate agent you may find that you receive more than one offer for the house. You can sell the house to whoever you want and do not have to sell to the buyer who offers the most money. You may wish to take into account whether the buyer:-
If you are using an estate agent, it is often easier for the estate agent to find out this information from the buyer.
It is unlawful for a seller who uses an estate agent to discriminate against a prospective buyer on grounds of race, sex or disability, either by refusing to sell the property, or by offering it on less favourable terms.
For more information about taking action about race discrimination, see Taking action about race discrimination .
For more information about taking action about sex discrimination, see Taking action about sex discrimination .
For more information about taking action about disability discrimination, see Using the disability discrimination act .
If you are using an estate agent, the agent negotiates with the potential buyer(s) about the price. The estate agent should try and obtain the best possible price for you. If you are acting alone, you must negotiate yourself. You do not have to accept the first offer put to you and should not be rushed into making a decision quickly.
Even if you have accepted an offer, there is nothing in law to prevent you from changing your mind and accepting a higher offer from someone else. You should also bear in mind that when an offer is made and accepted the potential buyer can also withdraw, for example, they may not get a mortgage, or the survey may show up some structural problem.
If you are selling yourself it may be a good idea to keep the names and addresses of all potential buyers who make offers, in case the one you accept falls through.
When you have accepted an offer you, or the estate agent, needs to inform whoever is doing the legal work. You can:-
Most firms of solicitors offer a conveyancing service. Although all solicitors can legally do conveyancing, it is advisable to choose a solicitor who has experience of this work.
For details on choosing a solicitor, see Using a solicitor .
You can use a licensed conveyancer to do your conveyancing. Licensed conveyancers are not solicitors but are licensed by the Council of Licensed Conveyancers.
If you want to find out if a local conveyancer is licensed you can write to the Council of Licensed Conveyancers.
For the address of the Council, see Buying a home .
Before making a choice as to who will do the conveyancing, you should find out the probable cost. It is important to contact more than one solicitor or licensed conveyancer as there is no set scale of fees for conveyancing. You should:-
When contracts are exchanged, and before completion, the buyer may wish to visit the house, for example, to measure up for carpets or to get an estimate for building work. However, you should not allow any work to be done by the buyer before completion.
You should inform the fuel boards and phone company that you are leaving and ask for final readings to be made of the meters on completion day. You should also inform the person at the council responsible for council tax, or in Northern Ireland, the Rate Collection Agency responsible for rates collection.
If the buyer is paying a deposit, this will be paid to your solicitor at exchange of contracts. The solicitor will hold this deposit until completion.
You must arrange to leave the house empty by completion day and to hand over all the keys.
Your solicitor will receive the rest of the purchase price from the buyer and will pass this, together with the deposit, to you.
For an mortgage and re mortgage ,a mortgage quote or just a mortgage and re mortgage visit Golden Mortgage .
Arrangement Fee - This is a fee charged by lenders to cover the cost of the administration involved in setting up the mortgage. Some lenders will waive this fee, in particular because they will make profits through the mortgage anyway. This fee is usually between £100 and £500.
Booking Fee - This is sometimes applied when you apply for a fixed rate mortgage, and is charged because in order for you to be offered that amount of money at that fixed interest rate, the lender needs to borrow a chunk of money from the money market, on whose rates fixed rates are set around. The lender has to "book" this chunk of money, and the cost for doing that is passed onto the borrower. This fee is usually between £100 and £500.
Lender's Valuation Fee -In order to check that the price of the property is fair and worth the price paid for it, a lender will commission a surveyor to carry out a valuation. The price of this depends on the property's value. So if the property is worth £50,000 you'll need about £125, but for a house worth £150,000 you'll need about £250. Look out for lenders who do not waive this fee, as an incentive for you to go with them.
Survey -This is for your benefit, and you are strongly advised to commission one to see if they can spot any defects that you'll have to pay to fix when you move in. A homebuyer's report will cost between £250 and £500 and a full structural survey will cost up to £1000 plus VAT. Again it depends on the property's value.
Legal/Conveyancing Fees - Although you could do this work yourself with a DIY
conveyancing kit, it is strongly recommended that you hire an expert solicitor
or licensed conveyancer to carry out the legal aspects of the purchase. You
should shop around as there is no standard fee for this. Some solicitors charge
a percentage of the property's value and some charge a flat fee. They will give
you an estimate depending on the amount of work needed, which depends on the
complication of the transaction.
You will also need to pay for the lender's solicitor to do their work. Sometimes
you can use that solicitor yourself and cut down the cost. But get an estimate
and compare with other firms.
Stamp Duty - A government tax that is charged for properties bought for above £60,000. You will pay 1% of the property's value if your home is worth between £60,000 and £250,000. You will pay 3% of the property's value should it be worth between £250,000 and £500,000, and 4% for anything above £500,000. So a £300,000 will cost you £9000 in stamp duty. Literally, you are paying for a local authority to put a stamp on your title deeds. The tax originated when William of Orange asked his courtiers to come up with a way of getting him more money through taxes. We kid you not!
Land Registry Fee - This is a government department looking after a registry of all the registered properties in England and Wales. They will charge a fee for transferring the registration for the property to the new owner. The fee will depend on the price of the property. Up to £40000 = £40. £40,001 - £70,001 = £60. £70,011 - £100,000 = £100. £100,001 - £200,000 = £200. £200,001 - £500,000 = £300. £500,001 - £1,000,000 = £500 and for £1,000,001 and above = £800.
CLICK HERE FOR LISTINGS OF ONLINE MORTGAGE APPLICATION SITES
Local Authority Search Fees - This is the fee charged by the local authority when your conveyancer carries out a local search to check that there are no potential problems such as a new road being built nearby or planning permission granted on a neighbouring property. You should allow £60 for this and more should the property be in a London borough.
Other Search fees and Disbursements - Other search fees include the coal authority, the land charge, index map, commons and company searches along with the bank transfer fee when your mortgage finds are moved. You should allow about £70 to cover this on an average house purchase.
Estate Agent's Commission - Should you be selling as well as buying a home, your estate agent will charge you a percentage of the property. This is likely to be about 1.5 - 2% of the property's value. Should you be selling it privately, then you should set aside funds for advertisements.
House-Hunting Expenses - The act of hunting for a house can be costly. You should allow money for the travelling you'll have to do, along with hotels and eating out should you be buying in a different area. You should add telephone calls as well as the fact that you may have to take time off.
Removal Fees - You should get quotes from 3 separate removal firms, because prices can vary enormously. You will also need to give tips. Removal companies will not only move your stuff, some will pack it all up and unpack it in your new property. Should you decide to do the removals yourself, you will need to pay for van hire, and petrol, plus return travel from the van hire company when you get and return the car. You will need to put aside £25 extra for insurance.
Mortgage Indemnity Guarantee (MIG) fee - An insurance premium that lenders sometimes charge when the Loan to Value of your mortgage is over 75% of the property. Some lenders will not charge an MIG at all, whilst some will do it only for LTVs of more than 80% or 90%. This is charged to cover the lender should you default on your mortgage repayments leaving your lender unable to recover the money it is owed. The insurance covers the lender, not the borrower.
Different lenders charge differing amount, but on average the costs will be thus:
Should your loan be between 75% and 90% of the property's value, you are likely
to pay about 4% of the amount between what you have borrowed and the property's
value.
Should your loan be between 90% and 95% of the property's value, you are likely
to pay about 6% of the amount between what you have borrowed and the property's
value.
Should your loan be between 95% and 100% of the property's value, you are likely
to pay about 8% of the amount between what you have borrowed and the property's
value.
Other Costs
- Premiums for Buildings insurance
- Premiums for contents insurance
- Removal insurance
- Disconnection and re-connection of utilities
- Installation of new equipment
- Laying of carpet
- Animal Kennelling
- Redirection of mail
- Notices for change of address.
| Golden Mortgage . If you are searching on the net for the best mortgage and re mortgage around, you can find a cheapest mortgage and re mortgage for you with Golden Mortgage . |