Explain... Costs


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When you decide to buy a house, there are always costs involved. These are one off costs, but need to be budgeted for as they can get quite high. Some costs can be added to your mortgage, but some must be paid upfront. Following is a quick guide to the extras you should allow for:

Arrangement fee	charged by the lender to set up your mortgage

Mortgage Indemnity Guarantee	charged by some lenders to cover the risk of a high value loan with a small deposit

Early Redemption Penalty	charged by the lender if you move to a different lender within a certain time period

Mortgage Protection	optional insurance which covers you for illness and loss of earnings

Basic Valuation	charged by the lender to ensure they are not over lending for a property

Legal Fees	charged by a solicitor for conveyancing

Searches	charged by a solicitor to cover their costs for carrying them out

Stamp Duty	tax charged by the government

Estate Agent’s Commission	charged by estate agent’s when selling your home

Removal Costs	charged by the removal if you choose to use them