If you are thinking about buying your first home, the process of finding the right mortgage, with over 60 providers and over 3000 products to choose from can be daunting.
This is where your independent mortgage adviser can help you navigate the mortgage maze. The cost to you of making the wrong choice could prove expensive. So what do you need to know?
A good starting point would be to check how good your credit rating is. The three main Credit Reference agencies are Experian, Equifax and Call Credit, and it is worth paying the small fee that these agencies charge, to get a personalised copy of your report. Once you have your file, check everything in it for accuracy, and contact the agency to change anything which is incorrect.
It is also worth remembering what the additional costs are, on top of your deposit and mortgage that you will be expected to pay.
Survey fee / Valuation fee for the valuation of the property, this fee varies between lenders, and may include a non-refundable administration fee, and is normally paid with the application. The whole fee is non-refundable once the valuation has been carried out. The type of valuation you choose will depend on factors such as the age and condition of the property, and whether there is any history of subsidence in the area. There are three types:
Solicitors fees - A solicitor is needed to assist in the legal aspects of moving home, such as transferring the legal title of a property from one person to another. This price varies fom solicitor to solicitor, so always ask for a quote.
Stamp Duty - This table shows the latest stamp duty rates on Residential properties:
You will pay:
As an example, If you were to buy a property for £275,000, you will pay £3750 of Stamp Duty. This is made up of:
You may also have to pay an 'arrangement fee' to the lender for a mortgage, and in some cases a 'Higher Lending Charge' this is an insurance for the lender for you defaulting on your payments, when your property is worth less than the loan.
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