What costs will I have to pay?
There are certain costs involved in taking out a mortgage:
- Completion fee (If applicable)
- Solicitor’s fee
- Higher lending charge
- Valuation fee
- Booking fee
In addition, if you are buying a house, you may have to pay:
- Stamp duty
- Search Fees
This fee allows you to reserve a mortgage rate when your application is agreed in principle and may also cover the Society's costs for setting up your loan.
These fees will normally depend on the size of the property and will include a Land Registry fee, the solicitors own conveyancing fee plus other charges and expenses known as 'disbursements'.
If your chosen product includes fees assisted legal please read the guide to Fees Assisted Legals leaflet.
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Before we can make a lending decision, we will need to value your property. There are 3 types of valuation available:
- Standard/Basic Valuation: This is a basic report rather than a survey. There may be faults in the property which will not be discovered during the limited inspection, so the applicant should not place reliance on it indicating the condition of the structure or that the purchase price is reasonable or otherwise. It is on this basis that the Society and its Valuer do not accept any responsibility if the customer proceeds with the purchase on this basic report alone.
- Homebuyers’ report: This is a "halfway" house between the basic valuation and a full structural survey. This is a more moderately priced option, but the report is limited in focus and there is little comeback in the event that serious problems are encountered later. The applicant does, however, have a relatively good chance that defects will be identified.
- Full Building Survey: This is a thorough and complete inspection of the property carried out by a qualified professional surveyor. It is the most expensive type of report, but can prove worthwhile for many applicants. If the property is defective, this should be discovered by a full survey.
If you’re buying a property, you will need to pay local search fees. A search provides information about your property and immediate neighbourhood, which may affect your decision to purchase the property.
Stamp Duty Land Tax
Information about stamp duty lad tax (SDLT) can be found here.