Valuation Fee 

The type of valuation you choose will depend on factors such as the age and condition of the property and whether there is any history of subsidence in the area. The fee must normally be enclosed with the application and is non refundable once the valuation has been carried out.

    - Basic Mortgage Valuation. This is for the lenders own purposes as they need a professional opinion on whether the property security for the loan. Therefore, we suggest you consider one of the more detailed types of survey, although which one you choose is up to you.

    - Home buyer's report. This provides concise information in a standardised format on the state of repair and condition of the property. The report will include comments on the property's defects and the valuer's opinion as to its marketability.    

    - Full structural survey. This is a structural report based on a detailed examination of the property. Any areas of concern that you might have about the property will be investigated.

Arrangement Fee

This may be payable either in advance, where the lender will ask you to enclose a cheque with the mortgage application, or on completion. An arrangement fee can typically vary from £50 to £300, and all or part of it may be non-refundable if the mortgage is declined or withdrawn

 

Legal costs and fees

The fees charged by a solicitor include the charge for conveyancing (the transfer of ownership of land), the costs of legal registrations and miscellaneous costs (known as disbursements). For example, Local search fees and Land Registry fees. The solicitors' fee varies but 1% of the purchase price or between £300-£500 for remortgages is a common figure used.

Stamp duty

The monthly payment is fixed over an agreed period of time and will remain the same regardless of whether interest rates rise or fall. At the end of the fixed rate term the interest rate usually reverts to the lender's standard variable rate or you may be offered the choice of another product, at the terms available then.

 

Mortgage Indemnity Guarantee (sometimes know as Mortgage Guarantee Premium)

This may apply if the amount you wish to borrow is more than typically 75% o e interest rate of the value of the property, the lender will require additional security on the amount in excess of this threshold in the form of an insurance policy (a Mortgage Indemnity Guarantee premium)

 

For example, if you wish to borrow 90% of the value of an £80,000 property, i.e. £72,000 and the percentage used by the lender is 75%, the insurance premium will be needed on the 15% excess. i.e. 15% of £80,000 which is £12,000. Typically you may be charged 7% on this excess, £12,000 x 7% =£840

 

This policy is used to protect the lender only and is used to cover themselves in the situation where the property is repossessed and the loan plus unpaid interest exceeds the sale value of the property. You will then owe the insurance company any payment claimed by the lender. The lender will arrange the insurance and the premium insurance company any payment claimed by the lender. The lender will arrange the insurance and the premium will be paid by yin some cases it can be added to the loan.

 

Redemption charge

Some lenders make an early redemption charge if you pay off your loan before then end of the normal mortgage term. In some cases this can the terms in the offer letter from your lender

 

Tax relief

Income tax relief is currently given at 10% on the interest element of mortgage £30,000 of a qualifying mortgage. The Government have announced this will be withdrawn from April 2000. To qualify the mortgage must be for your only or main residence and the property must be situated in the UK. This system of giving tax relief is called MIRAS (Mortgage Interest Relief At Source).

web: www.indie-mortgages.co.uk

email: enquiries@indie-mortgages.co.uk

Phone: 0800 028 9013