need advice on first time buyers please?

Question

im looking at getting a mortgage as a first time buyer but am not sure how much i have to pay before i actually move in the property. can anyone tell me roughly how much im talking about paying solicitors fees and do i have to pay them on the spot or can i pay off bit by bit?

also can anyone tell me from experience anything i should know about, also how much its going to cost me before moving into the property. i would be going for a simple mortgage.

im from uk so answers from uk would be most appreciated.

im not being funny with other countries only you americans do things differently from us uk's

Answer 1

It all depends on how much you are buying at. Some price ranges do not incur stamp duty, so im presuming you are buying below £125,000??

If so, you solicitor will charge you around £1000. They normally ask for about £250 of this to pay for dispersments - ie local search etc. The rest must be paid just before exchange of contracts (when everything becomes legal).

A survey will have to be done on the property, with most lenders charging around £350 to set the mortgage up and arrange for survey.

Its safe to say that you will need about £2000 before you start, not including any deposit you are putting down for the mortgage - or are you having 100% mortgage?

If you are buying above £125,000 (150,000 in some disadvantaged areas) you will need to pay 1% stamp duty (upto £250,000). This is a government tax and will also be paid before exchange of contracts. Hope this helps and good luck with your move.

Answer 2

It depends on the type of property, and the price.

If you're purchasing a leasehold property (i.e. flat, maisonette) then the solicitor fees will be higher due to the extra work relating to the leasehold. Normally an extra £200-300 in this situation.

In any case, if the property costs less than £125,001 then you will have no stamp duty - and will save at least £1250.

In general, you're looking at about £600-1000 for the solicitors, with stamp duty costing extra.

In addition to the solictors, you will need to allow for the survey + mortgage application fee, which will vary depending on the mortgage product. A survey will cost anything from £250-1000 depending on the type of survey you have done. The mortgage fee is normally anything from £0-1000 depending on the lender.

The only hiccup normally experienced by first time buyers is the deposit on exchange of contracts. Your mortgage isn't advanced until completion - which is normally 7 days after exchange of contracts. To exchange contracts, you normally require 10% of the purchase price. If you haven't got access to the money; you either have to exchange and complete at the same time, take a bridging loan, or a guaranteed deposit indemnity bond.

Answer 3

Solicitors fees are usually fixed with the price of the property. It can change from solicitor to solicitor. It can be as low as 0.25% or as high as 1% of the buying price. Therefore for a £300,000 buying price expect to pay between £750-£3000. On the top of that you will have to pay stamp duty to the government. This again depends on the price of the property. For properties below £125,000 the stamp duty is zero, between £125,000-£250,000 it is 1% (i.e. £2500) and over £300,000 to some other limit, it is 3% . If you are first time buyer and the property that you are buying is under £250,000 then prepare yourself for an extra £5,000 for these expenses. These expenses have to be paid up front. This means that your solicitor will pay the stamp duty and his fees from the mortgage you have, before it is handed to the seller's solicitors. This means that you need £5000 over and above the buying price of the property. If you haven't got this sort of money to spare, try to get a mortgage which £5000 more than you need to barrow for the property alone. When you get a good solicitor, he will advice you how to do these things. But before you get a solicitor, ask how much they are charging. Good luck and I hope this was helpful.

Answer 4

first of all you need to speak to an independant mortgage advisor as there are so many different mortgages out there to help first time buyers. their services will be free as they are paid comission from the lenders. depending on lender you may have to pay 5% - 15% deposit but with some you dont need any deposit at all. some lenders even pay a the survey fee for you otherwise this will be approx £300. this seems general but your mortgage advisor will give you definate figures free of charge. solicitors fees vary from area to area but the easiest thing to do is ring 2 or 3 and ask for a "quote for conveyancing" they will ask how much approx the house will be and if there will be one person buying it or a couple and then give you a verbal quote over the phone. other than that - just removal van - or mates cars! I know this isnt an exact answer but at least you know where you can get the info from. good luck!

Answer 5

before i moved into my house as a first time buyer i had to pay out just over £2,000. that was to solicitors and searches and all the other bits in between. i had to pay it up front.

Answer 6

you are looking at about 2ish grand in fees etc and don't forget the deposit which is traditionally 5% of the house value but you can get all sorts of deals if you look around.