So you found your next home or you are looking to remortgage
How much are the home buying costs? See our jargon page for useful mortgage phrases.
Depending on the type of deal you go for you may have to pay for a lenders fee, which can be anything up to £1999 or 1% of the loan amount, a good adviser will take into consideration the lenders fee when assessing the overall cost of the mortgage. Have a look at the mortgage process.
If you decide to use a broker, such as us, we will charge an advice fee which can be either a fixed fee or a % of the loan amount, we usually charge £349 depending on the case. Please see our client engagement agreement for exact terms.
The lender may also charge a booking fee of anything up to £250.
This is the money you have saved to put towards the purchase of the home or the equity already in your home and can be a mixture of the two.
Deposits can start from 5% however for better rates you will need 15% and for the best rates over 40%.
Mortgage lenders will assess your property to lend the mortgage on. They make sure the property is good security and it’s value is correct.
The valuation costs usually start at £250 up to £1500 depending on the value of the property. It is not a full structural survey so will probably not identify all repairs or maintenance needed, structural surveys start from £600 upwards.
You will need either a solicitor or conveyancer to carry out all your legal work when mortgaging.
They typically charge around a minimum of £700 or 0.5% of the property value, with the costs of any searches on top, we would suggest a further £300 for searches but that is dependent on property and location.
Stamp Duty Land Tax is the government tax paid on purchasing of a home, it starts over £125,001.
See our stamp duty page for the % banding and second homes/buy to lets.
If you have possessions to move you might need to hire a removal company, budget £400-600 although it might be cheaper to hire a van and do it yourself.
There may be other home buying costs and this page should be used as a guide only. Back to the mortgage page.