Mortgage Administration Fee
Mortgages
For the use of one of our qualified advisors we charge a small administration fee that is made up of the following and payable on application:
| Compliance Fee | £150 |
| Incidentals and administration | £150 |
| Total | £300 |
Our Administration fee is guaranteed. For this fee you will receive exceptional guidance and service. If you are not completely satisfied with your advisor or we can not secure you a mortgage, we will refund the administration fee you paid.
Due to the increased costs associated in being FSA regulated and the protection this provides you, we allocate a percentage of the cost to the payment of expenses in this regard.
Other Costs associated with buying a property:
1. Valuation fee
There are typically three levels of valuation available when buying a property. In most cases the buyer will be responsible for payment of this cost and payment is done when the mortgage application is completed. The level of valuation required is decided by the buyer and depends on a few factors. The age of the property, location etc.
| Basic Valuation Fee | +/- £450 incl VAT |
| Home Buyers Report | +/- £600 incl VAT |
| Full Structural Survey | +/- £1000 incl VAT |
2. Arrangement product Fee
Most bank charge an arrangement or product fee. They sometimes disguise it by calling it a booking fee, but in general it is referred to as an arrangement fee.
The cost of the arrangement fee will be dependant on a few factors: Loan amount, loan to value, interest rate and some others, but you can expect to pay around £1000 for a £250,000 mortgage. Since the start of the credit crunch these fees has increased significantly.
In most cases the fee can be added to the loan amount and is thus not payable until the mortgage completes.
3. Deposit
The amount of deposit required varies from bank to bank and various other factors. Expect to put down at least 5%, this will increase your chances of securing a competitive rate and product. It is possible to obtain a 100% mortgage, but it will mean that banks will protect their increased risk buy additional charges or a much higher interest rate.
Deposit - 5% to 25% of the value of the property is payable upon exchange of contracts.
4. Stamp Duty
In essence Stamp Duty is not a cost but a tax levied by the government all property purchases above £125 000. Stamp duty is payable upon exchange of contracts.
| Stamp duty on purchase price | 0% up to £125,000 |
| 1% £125 001 to £250,000 | |
| 3% £250 001 to £500,000 | |
| 4% above £500,001 |
5. Solicitors Fees
The total fees payable to the solicitor are made up out of a few components. Payable upon exchange of contracts.
| Conveyance & incidentals | +/-£800 + Vat |
| Local Authority Searches & Land Registry | +/-£400 + Vat |
| Total | £+/- £1200 + VAT |