123 Mortgages Mortgage Guide
Property valuation and survey fees
You'll need to carry out a valuation of the property you wish to buy this can cost around £130, although the amount is variable. Your mortgage lender requires this information in order to assess how much to lend you. Additionally, a full survey of the property is recommended, in order to ensure there aren't any structural problems such as dry rot, subsidence or vermin. Again, this cost will vary, but should be between £200-£300.
Legal expenses
In order to transfer the property deeds into your name, you'll need to hire a solicitor or licensed conveyancer. You should also request a detailed search of the property's local area to ensure that there aren't any plans to build a motorway through the area or any building restrictions.
If your property is worth over £60,000, you'll also need to pay a 1% tax called Stamp Duty. This ensures that your rights as the legal owner are upheld. Finally, Land Registry Fees are also required to confirm you as the legal owner of the property.
Bear in mind that most mortgage lenders are unlikely to lend you more than 3 times your salary. So, if you're buying alone, it may prove difficult to find enough money to buy your dream house. However, some mortgage lenders will agree to a loan that's 4 times your salary, IF you present your case well.
Buying your first home
So, you've decided to buy your dream home. You've contacted solicitors, surveyors, and your mortgage lender. You've paid for valuations, conveyancing, and saved for a deposit.
But even after all that, there's no guarantee that you'll complete the deal. The seller doesn't have to commit until the last moment, so, if another buyer makes a more lucrative offer, there's a chance you may lose the house.
That's why it's crucial that you close the deal as soon as possible.
Buying a home as a couple
Buying a home with your partner enables you to secure a bigger mortgage and therefore to buy a better property. However, do bear in mind that if one of you stops making mortgage repayments, for whatever reason, you could be responsible for paying your share AND your partner's.
One solution to this could be an interest-only mortgage, with the capital being repaid from an ISA. This option offers an inbuilt safeguard because they can only be held in individual names. So, you're unlikely to be landed with a huge bill, if it all goes wrong between you and your partner.
Mortgage Basics - basics regarding interest rate, exit penalities, proving income
Property valuation & survey fees - property valuations and expenses incurred buying a home
Getting a Mortgage - different ways you can go about arranging a mortgage
Mortgage Types - explanation of the different types of mortgage available
Mortgages for people with bad credit - info for people who have credit problems
Bad Credit Mortgage - more info on mortgages for bad credit
Remortgaging - information on switching your mortgage to another provider
Mortgage Calculator - basic mortgage repayment calculator
Useful contact information - useful contact information relating to mortgages
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.