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fees associated with mortgage

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hi,

We have been saving for years and years, we may be able to get something this year but I need to know how much extra we need to save for fees, I have searched online a lot but with quite different amounts, for example one site said 5k is charged to Exchange co contracts and another said about 4k covers all fees including solicitors contract fees?
If you have personally gone through that process we would be grateful if you could tell us how much your fees were?.
Also, we have 13k for a mortgage but at a 10 percent deal, does that mean the bank lend me 130k and I add my 13 k to that giving us 143k to spend or does it mean they multiply 13k by 10 and lend me 117k and I add my 13k to that giving us 130 k to spend?
Kind regards,
Bet :)

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Things may have changed, but I'm fairly sure the fees all got added to the mortgage, with the exception of the mortgage arrangement fee (which was around 100 - so probably 200 now) which was paid up front.

    For a 10% deal you provide 10% and they provide 90%, so for a 130K mortgage you are expected to come up with 13K and they provide 117K
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Arrangement fees are pretty hefty since the credit crunch, if you can get one for £1500 at the moment, that's pretty reasonable. I've not gone through the process as yet, but did work with mortgages for a fair while until recently. I've been keeping an eye on rates as I'm looking to buy soon. As far as I'm aware with most lenders you would need the arrangement fee up front on top of the (minimum) 10% deposit. Generally, as Carriage Return says, any other fees will be added onto the overall mortgage loan amount.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Thanks guys, I appreciate the confirmation that 13k gets a 130k mortgage and also the facts about other fees, its relieving to know most fees will be added to the mortgage.

    I hope everything goes well for your mortgage fibberty :)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    We've just moved, the mortgage fees were quite low and were all added to the mortgage anyway.

    The real killers are the solicitor's. You'll need about £1500 if you're moving, £3000 if you're selling as well. Don't forget removals, if it's your first house then you'll be fine without them, otherwise, getting a removal firm was quite easily the best £400 we spent.
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