First Time Buyer - Deposit & Fees

mojitomidge

Hi

I am new to this forum so apologies if this has already been discussed. I am currently looking to buy a house for £100,000. It needs a bit of work, nothing major just cosmetic.

I wanted to borrow £110,000 to account for the additional work so I am assuming I will need a minimum of £11000 for a deposit. What other fees are usually involved when buying a house. I am tempted to contact a mortgage adviser but I always find them a bit pushy on the phone and would rather know I can genuinely afford the house before I start wasting their time and mine.

just a rough idea would be grately appreciated.

Many Thanks
Midge

GMS

If you buy the house for £100,000 you cannot base your lending on a figure of £110,000.

You would be able to borrow 90% of £100,000 with a 10% deposit, meaning a £90,000 loan.

If the house needs work a lender may value lower, or even impose a retention or decline.

Other fees are survey costs, booking fees for lender, arrangement fees and legal fees. Then you get moving costs etc to be taken into account.

Some lenders will do free surveys and legals.

You should speak to a 'Whole of Market' broker if you are unsure of how to proceed

dollydiva

What gums says is true, you can only borrow 90% of the sale price; if you need extra money, you'd have to get a loan for your improvements.
I'm currently in the process of getting a mortgage for £106000 so similar...my valuation fee has been £380 and a local solicitor is costing me £783; cheapest quote I got was by an Internet firm, but I wanted to deal with someone within arms reach so to speak, rather than someone who could just ignore my emails and tel calls...

Dd

parkiepo

I am just waiting to move into my new house. I had a 25% deposit but still needed:

£799 arrangement fee, you may be able to add this on to the mortgage
£190 valuation fee , only the basic bank required on as I had my own private full survey done
Approx £700 solicitor fee

The don't forget everything else that comes with buying a house, moving, connection/set up of utilities if not able to transfer, white goods, beds , curtains, carpets...the list is endless and as a first time buyer who wanted to move 2 years ago i ended up saving more in order to be able to afford everything I wanted to do with the place.