Other costs

Other costs
Arranging any type of finance comes with fees and costs. Here are some examples that may apply, depending on whether you are buying a new property or remortgaging an existing one:

Stamp duty
This is a tax you pay when you buy a property based on the property’s value.

Legal fees
You will pay fees to your solicitor for doing the legal work associated with your purchase. This work is known as conveyancing.

Land registry
A fee for registering your ownership of a property.

Estate agent
Payable to your agent if you are selling through one. Typically this is a percentage of the final sale price.

Removal company
Fees vary depending on how far and how much you’re moving. You will typically pay 50% as a deposit and the rest on the day you move. It’s best to get several quotations before deciding which firm to use.

Mortgage valuation
This is for the lender’s benefit not yours. It satisfies them that the property is worth what you say it is.

Property valuation / survey
This is for your benefit and satisfies you that there are no issues with the property you’re buying. You may pay for a full structural survey or a less comprehensive homebuyer’s survey.

Mortgage lender’s arrangement fee
You pay this to the lender for arranging your mortgage, either up front or by adding it to your loan. Arrangement fees can vary significantly depending on the mortgage product you choose.

Early repayment charges
If you repay your mortgage in full, or in part but exceed the agreed partial repayment level, before the end of your mortgage term you can expect to pay a fee. This can range from a simple administration fee to significant early-redemption charges.

Higher lending charge
Where you are borrowing a high proportion of your property’s value your lender will insure itself against you defaulting and property values falling. The lender will usually pass this cost to you by adding it to the loan.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.

Our Terms of Business will clarify the areas of advice covered by your specific adviser.