Fees???

wantahouse

I'm so confused with fees associated with house buying!!
I know we need to have the deposit, broker ,survey and valuation fees ready to go. But what about stamp duty, solicitors fees etc when are they payable???

Can anyone give me a timeline of when fees are paid through the house buying process???

Rachel_Pierson

Plenty of fee-free deals available at the moment. It's common right now to find deals where the Product Fees, Valuation Fees, Legal Fees and other less-tangible Imaginary Fees dreamt up by the lender such as "Completion Fees" are non-existent. Are there reasons you're expecting to have to pay these yourself? What kind of Loan-To-Value (the amount you can pay as a deposit as a percentage of the total mortgage) are you looking at?

If you're paying your broker, there's something wrong in that arrangement. It's the mortgage provider that should pay them for a referral. Often brokers don't find the best deals as a consequence, as the broker's interests and yours aren't therefore aligned. (They're incentivised to refer you to the mortgage lender that pays them the most commission, not necessarily the one that might save you the most money.) Why not just use a comparison website and apply to lenders directly?

wantahouse

We will be looking at 90-89%, and will also be using a broker due to a default from 2012.
We will have 17,300 saved up by the end of Jan which is when we will start looking. Then adding a further £1100 the month after. And another £1000 the month after that.
So I just wanted to check there will be enough time to save the money.
We are hoping to purchase at around £15,000

wantahouse

Sorry purchase around £150,000

Rachel_Pierson

Just did a quick, scrappy search. The first one I looked at happened to be First Direct (whom I don't recommend as I've just experienced issues with their conveyancer.) They had a no-fee mortgage at max 90% LTV. 2.49% fixed for two years, or 3.09 fixed for five. That's £595 a month or £626 a month respectively, based on 25-year term and £150,000 house. You'd also have £150 stamp duty to pay (which you shouldn't add to the mortgage - with interest, it'd make it extortionate.) You'd get approved for either of them if you have regular income, don't have credit card debt or store cards eating away at your monthly earnings, and have never been declared bankrupt or had a mortgage foreclosed.

A default from 4/5 years ago shouldn't be a problem, depending on what you mean by that. If you mean you just didn't pay a debt without trying to come to an arrangement with your creditor, then yes, that'd possibly be an issue. But having a temporary cashflow problem that you came to an arrangement about with your creditors (however reluctantly on the creditor's part) and making it through that rough patch to get back on the straight and narrow is no biggie. They'd never lend to anyone if they ruled out everyone that's ever missed a payment.

When it comes to hardship, there's a difference between calling your creditors and coming to arrangements, and just not paying. To put it in perspective, I was unable to pay my mortgage for a few months in 2005 and again in 2015, owing to being briefly unemployed. That was fine, as I did overpay afterwards once I was back working. Lenders don't mind that - if anything it shows you're responsible when issues inevitably occur. (Which they will for most people at least once during a 25 year relationship like a mortgage.)

Lauralou79

I was actually trying to figure this out for when we start next year. Trying to figure out the timeline, what comes next, what fees need paying and when etc. I'm sure it's simpler once it's in progress.

wantahouse

Lauralou79 wrote: »

I was actually trying to figure this out for when we start next year. Trying to figure out the timeline, what comes next, what fees need paying and when etc. I'm sure it's simpler once it's in progress.

I'm glad it's not just me, I just feel so confused with it all.

wantahouse

Rachel_Pierson wrote: »

Just did a quick, scrappy search. The first one I looked at happened to be First Direct (whom I don't recommend as I've just experienced issues with their conveyancer.) They had a no-fee mortgage at max 90% LTV. 2.49% fixed for two years, or 3.09 fixed for five. That's £595 a month or £626 a month respectively, based on 25-year term and £150,000 house. You'd also have £150 stamp duty to pay (which you shouldn't add to the mortgage - with interest, it'd make it extortionate.) You'd get approved for either of them if you have regular income, don't have credit card debt or store cards eating away at your monthly earnings, and have never been declared bankrupt or had a mortgage foreclosed.

A default from 4/5 years ago shouldn't be a problem, depending on what you mean by that. If you mean you just didn't pay a debt without trying to come to an arrangement with your creditor, then yes, that'd possibly be an issue. But having a temporary cashflow problem that you came to an arrangement about with your creditors (however reluctantly on the creditor's part) and making it through that rough patch to get back on the straight and narrow is no biggie. They'd never lend to anyone if they ruled out everyone that's ever missed a payment.

When it comes to hardship, there's a difference between calling your creditors and coming to arrangements, and just not paying. To put it in perspective, I was unable to pay my mortgage for a few months in 2005 and again in 2015, owing to being briefly unemployed. That was fine, as I did overpay afterwards once I was back working. Lenders don't mind that - if anything it shows you're responsible when issues inevitably occur. (Which they will for most people at least once during a 25 year relationship like a mortgage.)

Thank you!! I've spoken to a broker who believes he can secure us a mortgage

downhillfast

Rachel_Pierson wrote: »

Just did a quick, scrappy search. The first one I looked at happened to be First Direct (whom I don't recommend as I've just experienced issues with their conveyancer.) They had a no-fee mortgage at max 90% LTV. 2.49% fixed for two years, or 3.09 fixed for five. That's £595 a month or £626 a month respectively, based on 25-year term and £150,000 house. You'd also have £150 stamp duty to pay (which you shouldn't add to the mortgage - with interest, it'd make it extortionate.) You'd get approved for either of them if you have regular income, don't have credit card debt or store cards eating away at your monthly earnings, and have never been declared bankrupt or had a mortgage foreclosed.

A default from 4/5 years ago shouldn't be a problem, depending on what you mean by that. If you mean you just didn't pay a debt without trying to come to an arrangement with your creditor, then yes, that'd possibly be an issue. But having a temporary cashflow problem that you came to an arrangement about with your creditors (however reluctantly on the creditor's part) and making it through that rough patch to get back on the straight and narrow is no biggie. They'd never lend to anyone if they ruled out everyone that's ever missed a payment.

When it comes to hardship, there's a difference between calling your creditors and coming to arrangements, and just not paying. To put it in perspective, I was unable to pay my mortgage for a few months in 2005 and again in 2015, owing to being briefly unemployed. That was fine, as I did overpay afterwards once I was back working. Lenders don't mind that - if anything it shows you're responsible when issues inevitably occur. (Which they will for most people at least once during a 25 year relationship like a mortgage.)

I appreciate you are perhaps just trying to be helpful but the advice you are giving could well jeopardise the poster's chance at a mortgage!
With a default on file (Yes a 'DEFAULT' is an actual thing rather than just a term the poster came up with) some lenders will instantly deny a mortgage. Making applications willy nilly based on your 'scrappy search' could result in multiple applications being made and therefore multiple credit checks - which is a really bad thing!

In this situation the poster would very much benefit the PROFESSIONAL advice of an all of market broker rather than approaching lenders direct.

amnblog

Rachel_Pierson wrote: »

If you're paying your broker, there's something wrong in that arrangement. It's the mortgage provider that should pay them for a referral. Often brokers don't find the best deals as a consequence, as the broker's interests and yours aren't therefore aligned. (They're incentivised to refer you to the mortgage lender that pays them the most commission, not necessarily the one that might save you the most money.) Why not just use a comparison website and apply to lenders directly?

Sorry Rachel


That's the biggest load of missinformed nonsense that I've seen on this forum this week.


The mortgage provider pays the Broker for identifying the client, checking they are suitable for lending, and putting the application pack together in the correct form to maximise the chances of a 'yes'.


Brokers in most cases will also charge the borrower a fee for the advice provided to the borrower and the risk on that advice.


The difference in commission (minimal though it is) is irrelevant as advice is regulated and businesses showing bias will be fined or shut down (and probably won't get the client anyway if they are suggesting an expensive product).


Comparison websites only show Lenders that pay them a commission (a nice twist).


Good luck with applying direct. Many of the posters on here who are in trouble have already done so.

Rachel_Pierson

amnblog wrote: »

Sorry Rachel


That's the biggest load of missinformed nonsense that I've seen on this forum this week.

Hold the front page! Mortgage Broker thinks that borrowers paying them fees is reasonable shocker!

In my first mortgage, I took advice from several Brokers. I ended up finding a better deal directly on the internet myself. And that was back in 2001. I've searched on my own every time I've remortgaged since. Others' mileage may vary, but in my experience a broker has never saved me money.