Getting a mortgage for beginners

KevinD83

Good morning all.

Im after some advice before we think about talking to a bank or mortgage advisor.

My wife salary comes in at 40k per year and mine at 16k. We both will be first time buyers and each have a help to buy isa. Currently with 4200 between us (plus govt bonus will take it to 5000) . We are looking to buy place for 100k

the only debt we have is my credit card. outstanding balance of 1200 which being repaid at 100 per month interest free.

what costs are actually involved when buying a place?

starring from the very beginning eg broker gees etc.

I know can't give precise figures but just want to make sure we are not forgetting about something so obvious.

Thanks
kevin

Anzhelka

For example our broker fee is £349 and our solicitors fee will be £1020. Mortgage application fee is 99£ and we had free house valuation.

Newbiebuyer2016

We've paid
£500 reservation fee
£1300 solicitors fees
£134 lenders fees
£500 brokers fees

Then we will be paying £345 moving fees

Newbiebuyer2016

Also why don't you just pay off the credit card? It'll look better for your affordability.

KevinD83

That's something looking into . working out what's best. The savings total or no credit card debt

Anzhelka

Newbiebuyer2016 wrote: »

We've paid
£500 reservation fee
£1300 solicitors fees
£134 lenders fees
£500 brokers fees

Then we will be paying £345 moving fees

Oh God, you spent a lot...why you had to pay lenders fees and moving fees?

chelseablue

Anzhelka wrote: »

Oh God, you spent a lot...why you had to pay lenders fees and moving fees?

I wont list ours, its even more than theirs :eek:

Malmo

Have a read of this MSE article which describes a simplified timeline and milestones of the buying process. It doesn't really factor in the complexities of a chain and the impact of that on the end to end process, but it is still useful as a guide.

Here is also a MSE guide that refers to the likely buying fees & costs to factor in and when they may be due.

nojcarter

I'm currently going through a first time buy so using a mortgage broker to help me through it. Fees I've had/expecting

Mortgage Broker Fee - £299
Principality Valuation Fee - £280
Solicitors - £750 (they provided me an estimate)

Zeebs90

We used a mortgage broker that doesn't charge a fee so that saved some money there. We had a £430 valuation fee, £295 mortgage fee (which is added to the mortgage but is interest free), £380 survey and solicitors is about £600 plus searches, stamp duty etc.

Also need to factor in costs such as buildings insurance, moving fees etc. - it suddenly adds up!

Opal_Fruit_2

Fees we are expecting:

Mortgage advisor fee: £499 (this also includes a lifetime fee meaning we can return to him at no cost when our fixed term ends)
Lawyer's fee: £1000 (approx)
2nd Lawyer's fee: unsure yet (Our lender requires 3 lawyers to be on the panel meaning we had to have a second lawyers firm)
Mortgage fee: £1000 (I think normally you can add this on to your mortgage but in our case we couldn't)

and then obviously on top of that we will have the cost of moving, buildings insurance etc