It’s easy to overlook some costs involved in purchasing or re-mortgaging your property. We’re outlining some of the most common fees to bear in mind.
Deposit
In any circumstance of a property purchase or re-mortgage, you will need some form of deposit. Determining how much money you need can be difficult, as you will need to consider not only your deposit amount relative to your mortgage borrowing, but also the other costs involved in buying a home. Your deposit can be savings, equity in your current property if you are re-mortgaging or selling outright, or even a non-repayable gift from a close family member.
Stamp Duty
Stamp Duty is a tax imposed by the government and is required to be paid on property purchases in the UK. Recent changes in stamp duty mean this is a factor for some, but not all buyers. If you are a first-time buyer, you can now buy a property for up to £425,000 without incurring this charge.
Likewise, if you are a next-time buyer selling your existing residential property and purchasing a new one, you will pay no stamp duty on the first £250,000 of the purchase. Stamp Duty is paid at the end of your house buying process via your conveyancer at your chosen solicitors firm and is part of the legal process.
Legal Fees
You are required to instruct a solicitor with a conveyancing department for your property purchase or re-mortgage. This will come at a cost to you, and each solicitor will have their own quotations and costings for the service they provide. Some re-mortgage products are available with lenders with a ‘Free Legals’ option. Again, this is different to each lender and product.
Mortgage Broker Fees
While some brokers expect their fees to be paid upfront, others will only charge after a mortgage application has been successfully approved by the lender. In some instances, broker fees are paid by the lender rather than you, in the form of commission.
It’s worth asking whether the broker’s mortgage advice or other services are billable. You should also request a full breakdown of the costs, including whether you will be paying the commission or a broker arrangement fee.
Here at Agentis, we understand everyone’s circumstances and requirements are different, which is why we take the time to understand everyone’s situation and help advise you on the best mortgage to suit you. Get in touch with our expert mortgage advisors today!
