Purchasing a property is an expensive business. We are all aware that buying a property means most of us will have to sign up for a mortgage and the advice from a trustworthy experienced mortgage advisor is critical to ensuring you have a positive time as a homeowner. We are also aware that saving for your first deposit has, with houses prices as high as they are, taken a large amount of time and sacrifice. However, you might not be aware of all the costs of purchasing your home; here are some of the costs you might not have considered.
Mortgage Application Fee; this is a fee levied at the buyer from the mortgage company when first taking the application. This is to cover administration costs on behalf of the lender for processing the mortgage request. This can be anything up to £1000 depending on the size of the mortgage.
Mortgage Broker Fee; Your mortgage broker needs to earn a living as well! With the rise of fully Independent Mortgage brokers, you as a buyer get better more personal advice, so ultimately you are in a better position. However, if you employ a professional they will charge. Nothing to worry about, but good to budget for. For more independent financial advice we recommend Pinewood Financial Solutions get in touch at 02380 199 540 or email peter@pinewoodfinancial.co.uk.
Legal Fees; Don't be fooled by cheap online lawyers, our best advice is always pay more than less. The extra money spent now will generally result in a quicker more efficient service and ultimately less stress. Online solicitors are cheap, but being able to talk to someone or visit their office, in our view is a must for truly understanding some of the complexities of the move. Mitchell and Partners work with a number of local solicitors and would be delighted to pass on their details.
Search Fees; Your solicitor will need to carry out a number of investigations for your purchase, these include local authority, environment, water and drainage searches. These ensure that you are aware of every piece of information concerned with your purchase, from whether you are connected for drainage to whether there are plans to build a motorway in your back garden!
Indemnity Policy; These are a specific type of insurance policy that your solicitor might advise you take if they believe you have a small (but none the less real) risk of a specific problem with your home after you purchase. This might be to insure you against costs or losses if the searches are unclear. These indemnity policies are constructed for the exact issue, therefore costs can range, but are normally hundreds of pound not thousands.
Down Valuation; It is possible that a surveyor might down value the property, not due to an issue with the building, but simply because of a lack of comparable evidence for the price. At this stage often a compromise is reached between buyer and seller and the price is adjusted, however, this might result in the buyer having to increase the deposit amount paid.
Solicitors Disbursements; This is a catch-all phrase that covers various smaller (but not insignificant) charges these might include the cost of transferring the mortgage monies or specific costs relating to extra work carried out on your purchases.
Now the good stuff - completion day- moving in...
Enjoyable and hard work is the name of the game following picking up the keys. You now own the house of your dreams, but even so, most buyers have to set aside funds for decoration works. Perhaps new floor coverings or larger projects like the refitting of major rooms like kitchen and bathrooms. Even if the property is just the way you want it, be ready for any unexpected bills, plumbing issues, boiler replacements and so on. Owning a home can be a thoroughly rewarding experience, Mitchell & Partners have a proud history over the past 50 years of helping house buyers become home owners. We work in partnership with solicitors and financial advisers that are open with the costs of moving and we will be delighted to assist you.
The cost of home ownership does not complete with completion.
