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First time buyer’s guide: fees and costs

Mortgage Fees

Now is the time to start the application process by seeking professional advice from a mortgage advisor. Make an appointment with our partners to get advice on the most suitable mortgage and insurance products for you.

Allow the mortgage meeting to last two to three hours. First, the consultant will establish your ability to pay the monthly mortgage payments.

Deposit

The deposit is the amount you spend on the purchase of your property. It is essential to get the complete selection of deals with a reasonable deposit amount.

Generally speaking, you need to attempt to save at least 5% to 20% of the home price you want.

You will have access to a wider spectrum of affordable mortgages accessible on the market by saving more than 5%.

Stamp Duty Fee

This is a tax that you have to pay when purchasing properties or land above a certain cost in England, Wales and Northern Ireland. Currently, buyers are not paying the first £ 125,000 stamp duty.

For property between £ 250,001 and £ 925,000 buyers pay 2% on the cost between £ 125,001 and £ 250,000, then pay 5% on the price portion over £ 250,001.

Purchasers in Scotland are not paying tax on the first £ 145,000. They pay 2% on the cost portion between £ 145,001 and £ 250,00 and then pay 5% on the price portion between £ 250,001 and £ 325,000.

Valuation Fees

A fee will be charged by the mortgage lender to assess your property’s value – needed to determine how much they are willing to give you. Depending on the type of mortgage, there may not be a charge but, if there is one, the cost can be between £150 to £1,500.

Surveyor’s fees

You’ve discovered a property you love, but before you commit to a buy you need to know it’s in good condition. You may not be aware of the expensive job that requires to be done without a survey.

Legal Fees

To do the legal job involved in purchasing a property, you will need a licensed conveyor or solicitor. They will also conduct local searches.

Removal Fees

These expenses differ based on how much you have to relocate and how far you have to go. Removal companies generally charge more for weekends moving.

Electronic money-transfer fee

This will typically cost £ 35-£50, and will cover the price of the lender when the mortgage cash is transferred from lender to solicitor.

Ongoing Costs

Utilities:

To assist you estimate your monthly utility expenses, ask the present homeowner what they spend on services: electricity, gas and water. Also, the cost factor for line rental, calls, broadband and television etc.

Council Tax:

This is based in England and Scotland on the valuation band of your property and whether or not you are entitled to a discount. The tax is based on the individual property in Northern Ireland.

Maintenance and repairs:

You will need to budget for regular maintenance, such as DIY and decoration, separately from any upfront repair costs. 

Insurance:

To safeguard the interest of your mortgage lender in the property, you will be required to carry out buildings insurance. In order to safeguard your property, it would also be wise to carry out content insurance. Even though you might not want to think about it, It’s not impossible for you to die before you complete your loan payments. Therefore, for the future peace of mind of your family, you may want to consider life cover to guarantee that in this eventuality the mortgage is paid off.