Mortgage Fees

SG5989

How much can a FTB expect to pay in fees?

I.e out with my deposit how much should I be saving for any other costs associated with getting a mortgage.

I also have adverse credit, I assume this may effect the costs.

Thanks

Trickzyy

Hi SG5989,

With regard to the mortgage, the most common associated costs are:

- Arrangement fee - though this can usually be added to the balance
- Valuation fee - some lenders offer this for free
- Completion fee - small admin fee <£50
- Exit fee - payable when you pay off the mortgage/remortgage

Your mortgage adviser should run through all the associated costs with you before making any formal application.

Other costs to consider are:

- Stamp duty land tax (SDLT) - £125,000+
- Conveyancing
- Removal costs

Hope this helps

ThePants999

Note - Trickzyy means that SDLT applies if the purchase price is £125,000+, not that you can expect to have to pay SDLT of £125,000+ ;-)

DragonQ

I went with Nationwide because they offered £250 cashback for existing current account customers and £500 cashback for first time buyers, making the effective total fee £249 rather than £999.

sevenhills

Legal fees can be £950-£1,500
They will also do local searches, which will cost you £250-£300
Valuation = ?
Survey = ?
Mortgage advisor = ?

Lilla_D

Valuation - depends on the lender, the property value and the chosen deal, but it can be free or a few hundred pounds
Survey - if you're buying an older property or if the valuer is concerned about some aspect, you may get a survey done, which would also cost a few hundred pounds. To note, a valuation via the lender is compulsory, a survey is always optional and you don't have to go through the lender.
Mortgage advisor - some are free, some have a fixed fee, some charge a percentage (typically 0.5-1%) of the mortgage amount.
Land Registry fee - depends on the purchase price, whether it's a new build and whether it's submitted electronically, but for a property below £500k, the cost is max £270

Trickzzy mentioned completion fee - in fact it's a money transfer fee for the bank to transfer the money to the solicitor and then the solicitor will likely also charge you for same day transfer to the seller's solicitor. Each of these transactions cost about £20-£50, although sometimes the lender doesn't have this fee.

Some lenders charge an admin fee, if you don't take insurance from them (£20-£30), while you may also pay for Chancel Repair Liability insurance (£20-£50) via your solicitor or the lender might also have an application fee (£90-£150), although most don't have this last fee.

Finally re having adverse credit history - the devil is in the details, so indeed it may impact on the lender choice and thus the interest rates and the fees charged by the lender, but if you speak to a broker, they will check your options and advise you accordingly.