Getting a mortgage for beginners

MortgageMamma

Just to let you know, with a lot of the fees involved you will have the option to add them to the mortgage if it makes life easier for you, for example broker fee;s, application fee etc. You normally have to pay between £240-£400 for a basic mortgage valuation and that is not added to the loan. If you are concerned about upfront costs instruct a broker who can source a mortgage where the upfront fees are low. Another way to save money is to use a conveyancing company that are online only (keeps the overheads down).

When it comes to removals shop around, the prices and quality of service between firms varies enormously. Make sure you check internet reviews, and ensure that the removal firm visits and physically sees the furniture they are expected to move. I recently moved home and despite using a particular removal firm before they were most displeased when they had to move some very heavy antique furniture!

If you want to make your removal cheaper ask them only to move the furniture and take your personal items yourself.

KevinD83

Thanks for all replies.

do I have to use a broker?can I just apply with bank such as halifax etc .

where does house survey costs come into it?

Thrugelmir

KevinD83 wrote: »

where does house survey costs come into it?

Lender will use a suitably qualified surveyor to assess the property to ensure it provides adequate security for the money advanced.

Borrowers are required to cover this external charge.

Zeebs90

Depends on who you want to the do the survey, you can have this done jointly with the valuation and just pay a bit more or get it done separately, which we decided to do and keep it completely independent from the mortgage process.

MortgageMamma

KevinD83 wrote: »

Thanks for all replies.

do I have to use a broker?can I just apply with bank such as halifax etc .

where does house survey costs come into it?

No you don't have to use a broker, but as a first time buyer I would recommend that you do. You won't get a fully advised sale in a bank, a mortgage is an enormous long term commitment and you need to know the ins and outs of your terms and conditions properly, you also need guidance as to how the house buying process and legal process works. The right broker can do all the shopping around for you and knows each lenders lending criteria intimately and has contacts within the lender to discuss your case.

Its easy to assume that all lenders offer similar terms and assess you in the same way, but the reality is they are all different and lending criteria is a complex area.

You will also need advice on protection - for example how would you pay your mortgage if one or both of you were unable to work due to accident, illness, unemployment? What would happen if one of you died and the other was left with the large commitment of a mortgage?

Going direct to a bank isn't a good idea - don't be afraid of taking professional advice, its well worth it and can often make sure the process is quicker and less stressful for you as well.

firely2327

KevinD83 wrote: »

what costs are actually involved when buying a place?

MSE has a mortgage guide which you should read, you'll find the link easily. it has everything included.


In a nutshell you'll need to consider the following:
1. solicitor fees for their services £600+
2. checks that the solicitor will perform on the property £100s
3. surveyor fees £ depends on survey type
4. mortgage fees - can include valuation, product fee (sometimes, and usually £1k+ in my experience)


and of course stamp duty not applicable for a 100k house.
All in all, the bulk of the £5k you have will be taken on the actual purchase I'm afraid.

firely2327

MortgageMamma wrote: »

Going direct to a bank isn't a good idea - don't be afraid of taking professional advice, its well worth it and can often make sure the process is quicker and less stressful for you as well.

As a first time buyer I went directly to a bank last year and had a stress-free time. That said, my application was straightforward and I was purchasing a home well within my means, plus I had waited to build up a substantial 30% deposit.


If you do the research, don't rush into making a decision and are savvy, I don't see why a broker/adviser is necessary. However, for more complicated financial situations I can see the appeal.

KevinD83

Thanks for all the replies . think we will arrange to see a mortgage broker soon.

One final question . All the extra fees apart from deposit can they all be added to the mortgage or are they some you have to pay upfront ?

Anzhelka

Solicitors and mortgage advisor's fee of course you have to pay, but not upfront, on completion (we had to pay solicitor £200 upfront for the searches). we had an option to add mortgage arrangement fee to the mortgage, but as it was only 99£ we didn't.

Newbiebuyer2016

Anzhelka wrote: »

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

Well we paid £99 to the same building society as you did. Plus £35 for their CHAPS payment as I am guessing you will have to too.

We also are got the deal with £250 cash back so that's a little bonus.

The £500 reservation fee comes off the deposit.

I'm not really sure how weve spent a lot more that you, our broker was a bit extra and so were our solicitors, but we both have the same things to pay.

Moving fees are for the removal company.

My friend just paid £5k in soliciters fees so I feel quite lucky.