What Other Costs?

It is vital that you are made aware of all the potential costs involved in either moving home or re-mortgaging. Once you have moved into your new home, the last thing you want is an unexpected bill.

Additional Security
If you plan to borrow more than 75% of the value of your property, your lender might elect to take additional security known as a Higher Lending Charge. This is an insurance that some lenders will take for their own benefit, which will protect it from serious loss should you default. Lenders will tend to only make this charge to you should you borrow more than 90% of the value of your property and will pay it on your behalf below this. They may also allow you to add it to the mortgage should you not be able to pay it up front.

Deposit
Some lenders will require a minimum level of deposit to be put down on the house you are buying, typically 5%.

Stamp Duty Land Tax (not applicable on re-mortgages)
This is a tax levied on all property purchases of more than £175,000 and is tiered as follows:

PROPERTY VALUE CHARGE
£175,001 - £250,000 1%
£250,001 - £500,000 3%
£500,001+ 4%

Solicitors' Fees
These fees are charged for overseeing the sale and/or purchase of your property, as well as in some cases, re-mortgages. It is worth noting that for re-mortgages, our adviser could find a special product where there are no additional solicitors' fees to pay. Contact us for a quote for conveyancing fees.

Survey Fees
There are essentially three different levels of survey available:

Every lender will require a basic valuation on the property. In addition, for your own information and peace of mind, you can elect to have either of the other two reports. Often the cost of doing so can be negotiated with the lender or find you a special product where the cost of the survey is included.

Application Fees
With some mortgages, there are application and/or booking fees. These are usually charged where there is a special fixed or capped rate to be booked and you need to be aware that not every lender will refund the fee should your transaction fall through.

Removal Fees
Again, should you be moving house, there will be a cost for hiring a removal company.

© 2008 Peterkins Solicitors Aberdeen, Inverurie, Huntly, Keith and Alford