Hot Topics

How Much Is The Valuation Fee?
The Valuation fee covers the expense of the mortgage lender visiting your prospective property to ensure that it is worth what you are intending to pay.
What Is A Mortgage Indemnity Guarantee (MIG) And Will I Have To Pay It?
The Mortgage Indemnity Guarantee is also known as a Mortgage Indemnity Premium or High Lending Fee. It protects the lender against the risk of you defaulting on your mortgage debt.
How Do I Prove My Income?
When you apply for a mortgage you will normally have to provide proof of income. However, there are mortgages available, called Self-Certified mortgages, where this is not necessary.
Unusual Properties
What happens if I have an unusual property?
Commercial Mortgages
A commercial mortgage is probably the best way to finance the purchase of buildings and land for business purposes, it provides the most flexible and affordable finance solution. Commercial mortgages are specialized due to the fact that the lender has a legal claim over the property until the loan has been repaid in full.

What Will The Initial Costs Of Buying A House Be?

Before you actually move into your new property – you will have to pay a series of initial costs to cover the following:

  • Deposit
    When contracts are exchanged you will pay your deposit through your solicitor – this is a pre-agreed percentage of the purchase price – usually between 5% and 10%.
  • Valuation / Surveys
    The lender will always inspect the property to ensure it’s an acceptable security for a loan. This may or may not cost you anything depending on which lender you choose – if you have to pay it will probably cost around £200.
  • Legal Costs / Conveyancing
    A solicitor or licensed conveyancer will deal with the legal aspects of purchasing a property for you, and this will incur costs. Ask for an estimate of these costs before you choose a solicitor.
  • Stamp Duty
    The government taxes you based on the property's purchase price and is calculated as follows: Up to £60K - Nil, £60K - £250K - 1%, £250K - £500K - 3%, £500K+ - 4%.
  • Arrangement Fee
    The Arrangement fee is the lender’s fee for administering a mortgage. You may be allowed to add this fee to the mortgage and the fee varies depending on the lender chosen and the mortgage offer.
  • Mortgage Indemnity Guarantee
    If the value of the property is not much more than the requested value of the loan (high LTV ratio) you may be required to take out an insurance policy to protect the lender against losses incurred if the property needs to be taken into possession because of arrears. It is important to remember that this is insurance for the lender, not the borrower, but it is you that will have to pay it.
  • Insurance
    You will have to take out a Buildings Insurance policy to cover your home against the usual risks – because if your home is destroyed in a hurricane you will still have to pay the mortgage! In addition to this you will need contents insurance to cover theft, fire, damage etc. It is also considered wise to take out a mortgage payment protection plan that will provide you with income protection against unemployment, sickness and redundancy.
  • Life Assurance
    Most lenders require Life Assurance to be taken out to cover the value of the loan if you die. See our home page for more details on which type of Life Insurance to choose.