Deposit Generally, the bigger the deposit, the more likely you are to be given a mortgage, and the lower your interest rate is likely to be. Stamp duty This is the tax paid on homes costing £125,001 or more. Valuation fee The mortgage lender will assess the value of the property to establish how much they are prepared to lend you. Normally around £150-£200 for a small property, but will be more if you buy a larger house. Some lenders don't charge you for this, depending on the type of mortgage product you select. The lender’s valuation is not an survey, and just confirms the house is worth the amount you have agreed to pay. It will not necessarily identify all the repairs or maintenance that might be needed. Surveyor’s fee Surveys range from a basic home condition survey costing around £250 to a full structural survey from £600 or more. Paying for a good survey could save you money on repairs further down the line and can be used to justify a lower valuation on the house should any significant points be raised. Not really required for a new build that still has the builders warranty. Legal fees You will need a solicitor or licenced conveyancer to carry out all the legal work when buying and selling your home. Legal fees are typically £500-£1,500 including VAT at 20%. They will also do local searches, which will cost you an additional £250-£300, these searches check whether there are any local plans or issues. Electronic transfer fee Typically costing £40-£50, this covers the lender’s cost of transferring the mortgage money from the lender to the solicitor. Removal costs Typically £300-£600 though you could do it yourself. Removal firms charge more at weekends and at the end of the month. Furniture and white goods More expensive than you think if you don't own anything already!
Many thanks chaps! Thought i would pop that in there incase people thought i had abandoned the thread, I've not had chance to properly look at every single line of text in this thread but a quick scan seems to provide all the answers i was looking for. Very much appreciate the time put in for this info. I guess i'll focus on nailing the biggest deposit i can in that time, I've started to financially managed myself better than ever so i don't see 10% being an issue given the timescale i expect to achieve it
I recently got my first mortgage through HSBC. Was pretty straight forward if your on top of it. One thing to note, is that you don't necessarily need life insurance. If you have no dependents, then if you die the bank can basically just take the house back. You only need / want life insurance if you've got a partner / kids, and so you wouldn't want them to be made homeless....
South west here.. I've literally given up all hope of getting a property in London. Looking to get a job away from here. Rent is about 1/3 of my wages and creeping up. Car insurance is about the same as a month of my rent (actually more expensive). Add a wife and child along with a job that has me working all hours.. I need to get out of here before I lose it completely. Not an easy choice as all my family is here.
Not completely true- if you have any next of kin ie parents/siblings etc not just dependents then if there is a potential shortfall if the lender sells the house for less than the owed loan amount, then they could be liable to pay this and any other debts that you incur. I have a good friend who is a solicitor and he has told me a couple of cases where this happened at the height of the market crash back in 08/09, where the parents of a deceased borrower had to sell their house in order to pay off the debt that their son owed due to his house being sold for much less than what his mortgage loan was on it.
That doesnt ring true, unless they had a vested interest - or were named as guarantor. Debts belong to the estate, and if the estate doesnt have sufficient funds then tough.
Not true, debt dies with the people named on the loan. The banks are entitled to take their cut from the persons estate before the remainder is passed to next of kin. On stamp duty there used to be an exemption for first time buyers but that seems to have stopped. See here: https://www.gov.uk/stamp-duty-land-tax/overview for the nitty gritty.
If you're in IT or project management, let me know. My work is always hiring experienced people and it's a very family-oriented company. It also helps that the office is both in a leafy family suburb area, and 5 mins walk from a train station. Bristol is roughly 80 - 90 minutes on the M4 to London, less to Paddington on the train. You'll love the pace of life here! PM me if I can help. Yeah .... many people think that debt dies with you but it does not.
That is an incredibly kind offer. I used to commute to somewhere near bristol for work a while ago. I'll PM you with a few details shortly. I appreciate I can't be a perfect fit for every job out there!
Also remmeber if you get a 2 bed, you can rent the 2nd room to a lodger for a while. If you save all the cash it could pay off enough of the mortgage after the first 2 year fix to jump you to the 80% rates which tend to be a lot cheaper than borrowing 90% plus...
