When it comes to buying a house and taking out a mortgage loan there are a lot of other charges you will need to deal with outside of mortgage repayments. The regular outgoing payment may make up the majority of the cost of making a mortgage, but prospective home owners who expect it to be there only cost will soon learn there are a lot more expenses associated with getting a mortgage. We will describe some of the most common and most important charges and fees you should expect to pay when taking out a mortgage loan the purchase your home.
- Broker’s Fee If you decided to use a mortgage broker to help you arrange your mortgage loan with a lender you will be charge a fee by the company you hired. Usually this payment is a percentage of the mortgage amount or just a regular flat fee. Not every broker will charge a fee, so if you are trying to save a little cash it might be a good idea to shop around and find one that fits into your plan.
- Solicitor’s Fees Solicitors are usually hired by home buyers to handle all of the legal factors surrounding your mortgage. Solicitors will also likely charge a flat fee or a percentage of the mortgage amount, typically anywhere form 1% to 2%.
- Local Property Tax Since 2013 home owners have been legally required to pay a local property tax if their home is categorized as a residential property. This tax is determined by self-assessment and you can calculate your amount due for the tax by assessing the market value of your property yourself. Local property tax can be paid via lump sum, but you could also choose to spread out the payment over a year if such a payment plan would be more feasible for your budget.
- Structural Survey Fee A structural survey is used to determine the quality of the condition of your property. This is usually requested by your lender if there were any important issues that arose during the inspection of your home. Even if a structural survey is not something that is required by your lender it may still be a good idea to have one carried out, so as to make sure there are no problems with your property. The amount due in payment for this kind of service can vary depending on the age, location, and type of property you own.
- Valuation Fee This fee is usually required by your lender as a part of applying for your mortgage. This fee is paid to a professional who will determine the market value of your home, and their valuation will usually only last around four months.
Other charges you might have to deal with when getting a mortgage include arrangement fees, estate agent fees, indemnity bonds, and stamp duty.