When purchasing a home, there is more to consider than the cost of a mortgage. There are other expenses to be factored in before and after you agree to buy. Below is a summary of what costs you can expect to incur.

Mortgage Fees

  • The arrangement fee is charged by lenders who are seeking to recoup the cost of administering your mortgage.
  • The booking fee is charged by some lenders if you wish to secure a fixed-rate, tracker or discount mortgage. This fee can be in the region of £100-£200

It is important that you understand if either or both these fees are applicable depending on the mortgage/ lender you use

Valuation fee

In order to safeguard the mortgage, lenders will require an independent valuation of the property you intend to buy. This valuation is to ensure that the house you are buying is worth the amount you have agreed to pay for it. Should your circumstances change in the future e.g. failure to keep up mortgage payments, the lender wants security that, should they repossess your home, they can sell it and recoup a fair amount.

The cost of this fee will vary but you can budget in the region of £300-£400 .

Survey fee 

Your lender may request that a survey is carried out to ascertain the structural integrity of the property you have agreed to purchase. As part of your own due diligence, you may decide to instruct a survey.

The survey will identify any defects at/ in the property e.g. damp, electrical/ plumbing issues.

This information allows you to be more informed about the property prior to completion.

Fees will vary, however you can budget between £400-£700 for this service.

Broker Fee

If you use an independent adviser to broker your mortgage there may be a fee associated with this service. More often a broker will receive a commission from the lender, however it’s worth checking with your broker to allow you to budget for the cost if necessary.

Stamp duty

Stamp duty is a tax on property transactions payable to the Government. When you purchase your house, you will transfer the stamp duty amount to your lawyer who then pays the HMRC on your behalf.

Go to www.gov.uk/stamp-duty-land-tax/residential-property-rates to calculate the stamp duty based on the price you have agreed to purchase your new house.

Conveyancing Fee

You will have to appoint a lawyer to handle the transaction of acquiring your new house. This service will incur a fee which is payable directly to your lawyer. The fee will vary depending on which lawyer you decide to appoint.

Land Registry Fee

Land Registry hold up to date records regarding ownership of property. Upon completion of your new home, your lawyer will pass the new ownership details to Land Registry and there is a fee levied by Land Registry for this service.

The fee will vary depending on the price of your new home therefore you can set aside a budget of up to £500.

Estate Agents Fee

At Mayers Real Estate we charge unbeatable fees and our clients experience excellent service.

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