Lenders will require a standard valuation for mortgage purposes as a minimum. Some lenders will offer this as a free incentive, others pass the cost of this to you. The amount of this fee will vary from lender to lender and is normally higher, dependent on the property value. Standard Valuations are cheapest. You may choose to upgrade this to a Homebuyers Report to get a better idea of the properties condition. For some properties it will be necessary to instruct a full building survey.
An arrangement fee is a charge from the lender for the product chosen. Arrangement fees vary significantly but the average is around £1,000. You can usually choose between paying the arrangement fee upfront and adding it to the mortgage, however by adding it to the mortgage will cost more in the long term as you will pay interest on it. There are mortgage rates available without an arrangement fee, though typically they have a higher interest rate. We will provide a personalised recommendation on which options are the most cost effective for your circumstances and loan amount.
This is a fee payable to your broker for the work involved in finding you a mortgage and obtaining a mortgage on your behalf. At Sarah Grace, we typically charge £195 for research and assessment and £295 on completion for administering your mortgage.
Stamp Duty Land Tax
The stamp duty payable will depend on your circumstances and the property value. For confirmation of how much you pay, please go to https://www.stampdutycalculator.org.uk/, if you are unsure, your solicitor will be able to advise on the amount payable.
The legal costs are payable to your Legal Representative. For solicitors who offer a ‘No sale, no fee’ service there will normally be an upfront, non-refundable amount payable at outset which covers the searches and disbursements for the property you are buying. The remaining fee will be paid on completion which will cover their own costs for administering the change of ownership.
Lenders make it mandatory to have buildings insurance. This insures the property against damage and ensures that the lenders security is safe. If you are purchasing a leasehold property then your buildings insurance will normally form part of your annual or monthly service charge but if you purchase a freehold house you will normally be responsible for ensuring the property is fully insured. We can help you obtain the appropriate cover by taking into account the rebuild value of your home, whether it is close to a body of water, has 5 level mortice dead locks on doors, has window locks and whether it has any structural problems that need to be considered. It is possible to insure your property for accidental damage and the excess you will pay can also be personalised.
This is not mandatory for the lender but is taken to cover your personal possessions within the home. You can normally keep costs down by combining this with buildings cover, as part of the same policy. It is also possible, within this policy to cover your valuables outside of the home, specify your expensive items to ensure that you have cover that would allow you to replace these items. We will help you cover expensive jewellery, watches, antique items, art or specialist items within and outside of your home.
There are also personal protection products such as Life Insurance, Critical Illness and Income protection. These products are not mandatory, but we will help you understand the importance of ensuring that you and your family are adequately protected.
- Residential purchase
- Residential Remortgage
- Buy to let purchase
- Buy to let remortgage
- Further advances and capital raising
- Second property purchase and remortgage
- Life Insurance, Critical Illness, Family Income Benefit and Income Protection
- Building and Contents Insurance
Contact us today to see how we can help.
We are able to match you with lenders who understand that your annual bonus forms part of your salary and that will accept 100% to allow you to borrow more.
There are lenders who will use your contract to prove income, there are also lenders who will accept just your first payslip. Get in touch to hear more
There are lenders who will accept up to 100% of this additional income. We can help you find a lender based on your individual income, the frequency and amounts of these payments. Get in touch today to discuss this with our experienced advisers