There are a number of different costs that may be involved with buying a house. These will vary based on the mortgage lender, value of the property and the amount of deposit. But to help you understand in a little more depth, below are a list of common fees you should account for:
MORTGAGE BOOKING FEE
This is a fee some lenders charge to secure a fixed rate deal
MORTGAGE ARRANGEMENT FEE
A mortgage arrangement fee can be applied to some products and is separate from your mortgage booking fee. This will either be paid up front or in some cases can be added to your loan amount, however, if added to your mortgage, this will increase over the lifetime of your mortgage.
TELEGRAPHIC TRANSFER FEE
This needs to be paid to the lender to transfer the loan amount between lenders.
MORTGAGE BROKER FEE
If you use a mortgage advisor such as Fortitude Mortgage Brokers to arrange your mortgage, you will need to pay a fee which vary depending on the complexity of your circumstances.
VALUATION FEE
The cost of a valuation can vary from lender to lender. In many cases the lender will offer a free valuation.
HIGHER LENDING CHARGE
This is a fee that can be charged by lenders if you are borrowing most of the volume of the property.
LEGAL COSTS
This covers a range of work that your solicitor will need to carry out for you. Also included within this are taxes such as stamp duty.
Before you even start thinking about how much you can borrow, or what type of property to buy, the first important step is to make sure you’re likely to be eligible for a mortgage. To help you with this, we’ve created a short quiz that will indicate whether or not you’re likely to be accepted.