First Steps

jangor_2

My son is in the early stages of buying his first property. He has applied for a mortgage and has paid for the mortgage valuation fee (£315) and also £99 for, he assumes, the mortgage arrangement fee. However he has also been advised he will need to pay £150 at the time of the "mortgage arrangement contracts exchange". I am concerned he hasn't understood correctly as this seems rather a high fee to arrange a mortgage. He was also pressurised into signing up for the home and contents insurance which appears to be very expensive. I assume he should also have a survey arranged by himself. The house he is hoping to buy has not apparently been lived in for some years. What are the most likely issues to arise with an empty property. Any advice would be much appreciated.

kingstreet

Have a look at the Initial Disclosure Document provided to him. What does it say in the fee section?

Turn to the key facts illustration for the mortgage product. Section 8 will tell you about the mortgage, valuation and legal costs. What are these, when are they payable?

Your son can commission a survey of his own by contacting a local surveyor. His options are a homebuyer's report, or a more detailed building survey. Alternatively, he may have the same options by using the lender's chosen surveyor and eliminate some of the double charging by doing so.

The property may show the surveyor high moisture meter readings if it has been unoccupied for some time. This may result in a request for a timber and damp report. He will also suggest the gas and electrical systems are tested. There may be other recommendations based on his findings at the time.