First time buyer mortgage advice in Doncaster
Buying a house in Doncaster or any property will possibly be one of the most significant financial decisions you make in a lifetime.
That said, first time buyers in Doncaster like yourself need to be aware of the additional costs when you purchase a house before you jump onto the property ladder.
The Break Down of Costs
Deposit
One of the most considerable costs of buying a house is having a deposit. Your deposit will all depend on the price of the property you are purchasing.
For example, if the buyer has a 5% deposit of the purchase price and got accepted. A mortgage lender would then lend you the remaining 95%. The larger the deposit you can put down, the better mortgage deals you will may be eligible for.
Estate Agency Fees
You only need to deal with estate agent fees when selling a property. Their services can vary between companies, so make sure you try to find the best price and leading service before diving into anything.
We find that the cheapest agents tend to be online ones who don’t have to worry about the costs of maintaining offices.
If you prefer a more personalised service, you may have to pay an extra 1-2% of your property selling price. The fees usually have room for negotiations, especially in a “seller’s market”.
(A seller’s market is where agents are fighting to get your instruction because of the lack of houses on the market.)
Valuation Fees
A lender will need to be sure of whether the property is worth what you’re going to be paying for it. Your lender may offer you this service for free, although they may not send you a copy of the report in return.
When this is the case, you may need to pay a fee. The prices can vary and be more expensive if you wish to select a more detailed report or not; it is entirely up to your choice.
Your decision will likely depend upon the age and type of property you are purchasing, along with any concerns you have about the property in question.
Mortgage Arrangement Fees
Some mortgage products offer comparatively cheap rates. The benefit can be outweighed by an arrangement fee made payable to the lender. Not every product will have one, so the cost.
An example, could either be nothing, or as much as £999+. It all depends upon the lender and the product you have chosen.
Sometimes these are to be paid upfront or you can elect to add these to the balance of your mortgage, but you would then incur further interest charges.
As a mortgage broker in Doncaster, we can compare mortgage deals factoring in the costs to give you a more general overview of your expenses.
Solicitor’s Fees
You’ll need to take up the services of a solicitor, wherein the fees quoted by various firms can differ by massive amounts.
Whether it’s a freehold or leasehold, you will need to give the property address and give the purchase price to obtain quotations on what you’ll have to pay.
- Ensure the firm includes VAT
- Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Authority Search FeesIs
- Is your solicitor on your mortgage lenders panel?
Stamp Duty
In addition to your Solicitor’s fees and disbursements, you’ll be required to pay this tax which the solicitor collects on completion of the property purchase.
Full details can be found here – a residential purchase of £180000, the Stamp Duty would be £1100.
Broker Fees
Your mortgage broker will usually charge a fee for their service. Please try to use a company that charges on completion only and avoid any application fees where your money will be at risk.
Removal Fees
The cost of moving your furniture can vary significantly and will depend on the level of service you are looking for. If you are quite happy to hire a van and roll your sleeves up, this can cost less than £200.
On the other hand, if you are looking for a company that provides the full service this can be £1,000 plus.
If you would like to discuss the costs involved in obtaining a mortgage in more detail then please don’t hesitate to get in touch.
Date Last Edited: December 6, 2023
