Mortgage costs

jcrooks89

Can someone tell me how much they paid on mortgage fees please (for a first time buyer)? Inc arrangement fees, booking fees, valuation fees, full structural survey, transfer fees, mortgage account fees, own building insurance arrangement fees, stamp duty, removal costs.

Me and my husband are looking at properties from about £120,000-£135,000. The internet is full of approximate prices but we would like to know how much we should save for these costs.

Thanks

HappyMJ

jcrooks89 wrote: »

Can someone tell me how much they paid on mortgage fees please (for a first time buyer)? Inc arrangement fees, booking fees, valuation fees, full structural survey, transfer fees, mortgage account fees, own building insurance arrangement fees, stamp duty, removal costs.

Me and my husband are looking at properties from about £120,000-£135,000. The internet is full of approximate prices but we would like to know how much we should save for these costs.

Thanks

£800 plus stamp duty. Being less than 10 years old I did not undertake a survey. I did not take out buildings insurance with the mortgage provider. I moved my belongings using the car and purchased new furniture with free delivery which I have not counted. I did not get a fixed rate mortgage so did not have arrangement or booking fees.

How long is a piece of string? It could be up to 5% of the purchase price if you undertook a full survey and included many of the costs I did not pay for....plus SDLT.

e13

Hey,

Mortage fees will be very variable depending on the mortgages. Some are "fee free", but obviously fees are then structured into the interest. The best thing to do for fees (I think) is to consider the cost over the time for which you're locked into the mortgage, in conjunction with the standard monthly costs. The mortgage I've got had no "fees" and was overall the cheapest over the lifetime of the fixed rate chunk. I think here I'd talk to a mortgage broker? I've not used london and country, but they're free and I've heard good things. The estimates I had down in my moving spreadsheet were as follows: Mortgage fee - anything up to £1000+ but can usually be added to mortgage, application fee - up to £200, can be nothing, valuation fees - up to approx £300, can be nothing.

Stamp duty on a £120,000 house would be 0 (up to £125k). On a £135k house it would be £200.

Removal costs will vary wildly depending on your plans - maybe you only need to hire a van and can persuade friends and family to help you out? If so, you could be looking at less than £100. If you're moving a long way, have a lot of stuff, and want professional movers, you're looking at a lot more. I imagine it'll also vary a lot with the part of the country you're moving to/from.

A structural survey seems to cost about £600 where I'm looking, but again this will vary depending on where you live.

Remember you'll also need to save solicitors fees, and that you need to account for the cost of searches in those fees. Most solicitors seemed to charge about £25 for the transfer of the money, and then there are often additional fees if you've got a help to buy ISA.

Unfortunately this answer doesn't give you many exact numbers, because they will vary so much depending on deposit, where you live, the complexity of the purchase etc. I think if you want exact numbers you'll probably have to ring up firms you'd consider using and get some quotes?

My general rule for anything is to assume it'll cost more than you've estimated, so there's room for things to go wrong! Sorry I can't be more help.

jcrooks89

Thank you that's really helpful. Its so expensive!

alchemist.1

e13 wrote: »

Hey,

Mortage fees will be very variable depending on the mortgages. Some are "fee free", but obviously fees are then structured into the interest. The best thing to do for fees (I think) is to consider the cost over the time for which you're locked into the mortgage, in conjunction with the standard monthly costs. The mortgage I've got had no "fees" and was overall the cheapest over the lifetime of the fixed rate chunk.

I think here I'd talk to a mortgage broker? I've not used london and country, but they're free and I've heard good things. The estimates I had down in my moving spreadsheet were as follows: Mortgage fee - anything up to £1000+ but can usually be added to mortgage, application fee - up to £200, can be nothing, valuation fees - up to approx £300, can be nothing.

Stamp duty on a £120,000 house would be 0 (up to £125k). On a £135k house it would be £200.

Removal costs will vary wildly depending on your plans - maybe you only need to hire a van and can persuade friends and family to help you out? If so, you could be looking at less than £100. If you're moving a long way, have a lot of stuff, and want professional movers, you're looking at a lot more. I imagine it'll also vary a lot with the part of the country you're moving to/from.

A structural survey seems to cost about £600 where I'm looking, but again this will vary depending on where you live.

Remember you'll also need to save solicitors fees, and that you need to account for the cost of searches in those fees. Most solicitors seemed to charge about £25 for the transfer of the money, and then there are often additional fees if you've got a help to buy ISA.

Unfortunately this answer doesn't give you many exact numbers, because they will vary so much depending on deposit, where you live, the complexity of the purchase etc. I think if you want exact numbers you'll probably have to ring up firms you'd consider using and get some quotes?

My general rule for anything is to assume it'll cost more than you've estimated, so there's room for things to go wrong! Sorry I can't be more help.

This is key when considering the respective fees. Some lenders are doing free valuations so factor that in too.

Samsonite1

Be slightly wary of fees. If it takes 6+ months to buy a house, you will lose the fee you paid (often £1000+) for the mortgage and then have to get a new one and pay the fee again or go with a slightly higher rate. We paid £1000 for a mortgage fee and only completed 2 weeks before it expired so we were getting stressed!

rtho782

We bought for £230k. We mortgaged with nationwide.

We paid nothing to Nationwide for the mortgage arrangement, valuation etc.

We arranged our own structural survey and paid £400 for it.

We paid £2,100 stamp duty.

We paid £695 removals, from a 2 bed rental to our 4 bed house, about 15 miles away.

We paid the solicitor about £1500 including disbursements and VAT.

We're also getting £1,250 cashback from nationwide which will counteract a chunk of this.

Brightspark87

Hi we paid mortgage fees rather than the higher rate of interest as over the 2 yr fixed period it was cheaper than the additional monthly payments. These were £500 arrangement and £420 valuation. any good mortgage broker will talk you through these. As for the other costs, stamp duty is fixed, we paid extra to have reliable local solicitors (as we wanted a little hand holding as FTB too) and moving 15 miles we have booked for £140 including possible 2 trips. We used him for move down from London last year and found him originally on Anyvan.com.

musafir05

Stamp duty
Valuation fee
Legal fee
mortgage engagement fee