First Time Buyer and Fees

Conan1Sett

Hello all,
I am searching for any wisdom and experience regarding purchasing property. The property is a freehold worth 60k and lenders such as Barclays are forthcoming with 85% LTV offers. I am nearing my deposit goal and I was wondering about the fees that go with buying.
Is it so that certain fees are added to the loan amount and with interest? I do not mind this as much as I mind the money over my deposit goal that I would need to save. This is important to me to the point that my living situation is being determined.

So it would be: 54k mortgage plus interest. 9k deposit plus fees. 
Kind regards,
J.

ACG

The only fee that can be added to the mortgage is the lenders arrangement fee if there is one, but on a £54k mortgage, I think it would probably make more sense to pay a higher interest fee with no arrangement fee.

The other fees:
- Valuation fee - basic valuation may be free with the mortgage, up to around £300. There are also homebuyers and structural reports which cost more, but those are optional. 
- Legal fees - around £900-1300.
- Mortgage broker fee - £0-500, if you use one, some charge, some dont. 

Blue_bell_20

60k house valuation, 15% deposit =9k, which would mean 51k mortgage plus interest not 54k. Unless you have a 10% deposit. I may have missed something.

To add:
solicitors - we had quotes for 1-1.5k. You could ask for quotes now to budget for it? I’ve heard there may be no completion no fee solicitors mentioned but I don’t know anymore than that. 

mortgage advisor- optional- ours cost £400. 

Further Surveys optional - like ACG mentioned there are further surveys than just the valuation (which the lender will require anyway). These can be done independent. We are looking at ~550-600 for ours but we are buying an old house and we need one. 

Moving costs/furniture etc.

Conan1Sett

Blue_bell_20 said:

60k house valuation, 15% deposit =9k, which would mean 51k mortgage plus interest not 54k. Unless you have a 10% deposit. I may have missed something.

To add:
solicitors - we had quotes for 1-1.5k. You could ask for quotes now to budget for it? I’ve heard there may be no completion no fee solicitors mentioned but I don’t know anymore than that. 

mortgage advisor- optional- ours cost £400. 

Further Surveys optional - like ACG mentioned there are further surveys than just the valuation (which the lender will require anyway). These can be done independent. We are looking at ~550-600 for ours but we are buying an old house and we need one. 

Moving costs/furniture etc.

Yes sorry, it is 51k as you said. I was hoping that I would be able to get a 90% LTV which would've meant a 54k loan and a 6k deposit but that isn't happening. 

So I'm really only looking at legal fees? Is this the same as conveyancing? Must I obtain the solicitor myself privately? 

MaryNB

Conan1Sett said:

Blue_bell_20 said:

60k house valuation, 15% deposit =9k, which would mean 51k mortgage plus interest not 54k. Unless you have a 10% deposit. I may have missed something.

To add:
solicitors - we had quotes for 1-1.5k. You could ask for quotes now to budget for it? I’ve heard there may be no completion no fee solicitors mentioned but I don’t know anymore than that. 

mortgage advisor- optional- ours cost £400. 

Further Surveys optional - like ACG mentioned there are further surveys than just the valuation (which the lender will require anyway). These can be done independent. We are looking at ~550-600 for ours but we are buying an old house and we need one. 

Moving costs/furniture etc.

Yes sorry, it is 51k as you said. I was hoping that I would be able to get a 90% LTV which would've meant a 54k loan and a 6k deposit but that isn't happening. 

So I'm really only looking at legal fees? Is this the same as conveyancing? Must I obtain the solicitor myself privately? 

Yes you'll need to get your own conveyancing solicitor. Better to look at local well recommended companies rather than online firms. Make sure they can act for your lender or you'll have to pay extra for your lender to get their own approved solicitor. When you contact solicitors for quotes ask if they can act for your lender.

When you ask solicitors for quotes explain all the aspects for your purchase. There can be loads of additional fees. For example I paid £50 above the flat fee because my deposit was gifted. Make sure they include the cost of searches.

As above, there's also the mortgage valuation fee (separate to the mortgage product fee) which you'll have to pay your lender.

You also have the option to get a homebuyers or building surveys.

Conan1Sett

MaryNB said:

Conan1Sett said:

Blue_bell_20 said:

60k house valuation, 15% deposit =9k, which would mean 51k mortgage plus interest not 54k. Unless you have a 10% deposit. I may have missed something.

To add:
solicitors - we had quotes for 1-1.5k. You could ask for quotes now to budget for it? I’ve heard there may be no completion no fee solicitors mentioned but I don’t know anymore than that. 

mortgage advisor- optional- ours cost £400. 

Further Surveys optional - like ACG mentioned there are further surveys than just the valuation (which the lender will require anyway). These can be done independent. We are looking at ~550-600 for ours but we are buying an old house and we need one. 

Moving costs/furniture etc.

Yes sorry, it is 51k as you said. I was hoping that I would be able to get a 90% LTV which would've meant a 54k loan and a 6k deposit but that isn't happening. 

So I'm really only looking at legal fees? Is this the same as conveyancing? Must I obtain the solicitor myself privately? 

Yes you'll need to get your own conveyancing solicitor. Better to look at local well recommended companies rather than online firms. Make sure they can act for your lender or you'll have to pay extra for your lender to get their own approved solicitor. When you contact solicitors for quotes ask if they can act for your lender.

When you ask solicitors for quotes explain all the aspects for your purchase. There can be loads of additional fees. For example I paid £50 above the flat fee because my deposit was gifted. Make sure they include the cost of searches.

As above, there's also the mortgage valuation fee (separate to the mortgage product fee) which you'll have to pay your lender.

You also have the option to get a homebuyers or building surveys.

Do all lenders care if a deposit was made up mostly from unsecured loans?
I am hoping that my family will gift me the money to pay any and all additional fees aside from the deposit. 

MWT

Do all lenders care if a deposit was made up mostly from unsecured loans?

I am hoping that my family will gift me the money to pay any and all additional fees aside from the deposit. 

Yes, that would be a problem for many lenders, sounds like you need to be talking to a broker about what is possible...

I hope you are not planning to finance your deposit from credit card debt?

Conan1Sett

MWT said:

Do all lenders care if a deposit was made up mostly from unsecured loans?

I am hoping that my family will gift me the money to pay any and all additional fees aside from the deposit. 

Yes, that would be a problem for many lenders, sounds like you need to be talking to a broker about what is possible...

I hope you are not planning to finance your deposit from credit card debt?

No, I have two unsecured loans that are 24 months and 36 months. I won't have them paid for another 30 months. 

I declared this on Experian and it showed some lenders are highly likely to approve. I declared it in more detail to L & C and it said that some lenders were likely to approve. Barclays gave a loose Approval in Principle but only for an 85% LTV mortgage. I did declare the terms of the unsecured loans on my application. Again, though, it was only for an AIP. 

MWT

I would still strongly suggest you get a broker to help you, it is not that there aren't places that will lend to you, it is just that doing it on your own you may waste time and not end up with the best deal for your particular circumstances which will cost you more in the long run...