First time buyer

[sweetcheeks85]

Hi,

Hope someone will be able to help

Me and my DH are thinking about buying our own home, we currently live in a council flat. I was just wondering if anyone can give me a breakdown of the fees (laywers etc) involved with getting a mortage. We are probably looking at getting a 60k mortage.
Not really sure of the whole procedure involved in buying a house so if someone could enlighten me that would be great!


Thanx

 

[MrsRH]

solicitors fees include legal work, land searches, admin, postage, bank transfers , VAT etc = £800-£1500 depending on solicitors/area

you may need to pay for the mortgage arrangemement fees= can be £0- few hundred pounds

nearly all mortgage providers require you to home insurance = few hundred pounds
(depends on area, house value etc)
stamp duty is on the total cost of the house (payable up front to the solicitors)
0% of total house selling price up to £125,000
1% ...................................up to £250,000

removal costs also

I see you live in Scotland?? Scotland legal fees may be different as I know the house buying system is totally different.
I'd phone a local solicitor to ask about their fees
hth

x

 

[womblemum]

Might also be worth looking into whether you are able to buy your council flat/house as you may get a preferential buying rate to do so as a tenant.

Go to charcol.co.uk to compare mortgages or moneysupermarket.co.uk

Bear in mind that often cheaper interest rates come with a larger arrangement fee and will therefore actually work out more expensive for you. For example, if the arrangement fee is an additional £800 to get a 0.2% reduction in rate, and your mortgage would be £800 a month, you are effectively paying an additional months worth of mortgage payments to get a pretty small rate reduction on a £60k mortgage.

Most rate deals are for 2 years and then you are allowed to move mortgage so also potentially factor in the cost of remortgaging in 2 years time - unless you choose a 5 year or life time rate.