FTB questions.....

HydroBurn

Hi guys,

Just in the process of getting my AIP. This all depends on how much they tell me I'm allowed.

Anyway now the question.....

What fees should I be looking at for the purchase of a house? (assume £90k - £100k)?
Basically what are they, how much are they and what can I add to the mortgage?

I have no savings as I've been pumping it all into paying stuff off etc...

MTIA

Hydro

MascaraMinx

You will need to pay solicitors fees, stamp duty, survey and mortgage fees. It's difficult to say how much this would all be as it depends on what you are buying but as a (very) rough guide stamp duty is 1% of your purchase price, mortgage fees could be anything from 0 - £1k (depends on your deal), a survey could cost anything from £500 - £700 (Valuation or Homebuyers Report?) and solicitors fees would probably be in the region of £800 - £1k. So you are looking at roughly £3k. I'm assuming you are talking a 100% mortgage if you have no savings? In which case you would need a 100+% mortgage to cover the fees mentioned above - Northern Rock would be your best bet. But do read the numerous posts on here about the pitfalls of this and make sure you understand what the market looks like at the moment.

Martin_OB

The biggest thing which I have found helpful is research.

This site is absolutely fantastic in pointing you in the right direction - but you must put the legwork into get the best deals.

It takes days to get the best deals for you - you have to be prepared to phone up every mortgage company, every solicitor!

However, bear in mind that the best solicitor isn't always the cheapest. I think my solicitor is great - but he is expensive. However, a good solicitor is worth his/her wait in gold.

With all the searches, we found the cheapest solicitor to be around £2,100, the most expensive £3,800 - so there is a huge range. Make sure he/she isn't going on holiday before you're planning to move in though! I'd also advice paying £150 (roughly £75 each) to get the electrics and central heating checked.

Above all, there's plenty of advice out there - but you must choose the house, mortgage and solicitor which feels right to you.

Best of luck.

benood

If you're buying for less than £120k you'll have no stamp duty to pay. I agree with the overall figure of £3k though but shouldn't be more.

By the way what's an AIP??

mr.broderick

Agreement in Principal for the mortgage.

maliachammy

It can be a minefield before you start the process finding out all of the hidden things you have to pay for

Mortgage fees (depends on the bank and the mortgage: we had a fee free mortgage but I guess we're on a higher interest rate to compensate for it, otherwise you may end up paying a valuation fee and a set up fee if it's a fixed rate etc.) could be anywhere from £0-1000
Solicitors fees (huge variation between different firms, we are using Conveyancing Warehouse, they have been efficient and were much cheaper than anything else i could find.) look at £500-1200 without stamp duty
Survey (homebuyers report if your house is newer, structural survey if it is over 50 years or so) homebuyers £250-400 / structural £400+

In most cases I guess they're the main ones but don't forget all of the other things to budget for: home/life insurance, removals, furniture, appliances and so on and so on.

This is just what i've found from reading this forum and from my experiences nearing the end of a house purchase. Hope this helps you and good luck.

HydroBurn

Many thanks for all the advice on this. Unfortunately I only got offered a pittance of what I need! The reason given for my 'low credit score'. So I'm going to get hold of my credit file and check for mistakes. If there aren't any mistakes I guess I'll just have to wait a while longer and some more debts paid!!

These things happen!

Cheers,

Hydro