When it comes to buying a property, you can go down one of two routes: you can either buy it upfront or take out a mortgage to pay off the property over time.
Both routes will be costly, but of course, you’d expect that when buying a house! Undoubtedly, paying upfront will cost you a lot more money at the time of purchase, however, getting a mortgage will cost you more money in the long run.
It’s likely that you’re going to have to pay the price that’s on the tag when purchasing with cash, whereas a mortgage will allow you to take out a loan and pay it back over a long period of time.
If you can afford it, buying a property upfront is a great investment. It doesn’t matter whether you’re planning to live in the property or use it as a buy to let in Manchester, getting yourself on the property ladder can put you in a great financial position in years to come.
In the majority of situations, you’ll have the upper hand over someone who’s taking out a mortgage if you’re buying with cash. One of these reasons is down to your reliability.
From the viewpoint of a seller, if a cash buyer approaches you and makes an offer, it’s hard to say no. One reason behind this is that it would be a quick sale. There is no chance of your buyer getting caught up in the property chain as they have the money there and then.
‘Getting stuck in the property chain’ is when a property is being sold and the buyer cannot move in yet as they are waiting for their home to be sold. As you can imagine, this chain can go on and on.
Also, a cash buyer will not have to pass any affordability checks, as they already have everything in place. They can proceed right away!
Moving home in Manchester can already be stressful enough, especially when the process starts to slow down. A cash buyer can only speed up the process, not slow it down. The mortgage process can sometimes bring trip-ups and hurdles along with it, particularly in specialist situations.
Equally, buyers taking out a mortgage can speed up the process too if they’re prepared. This means having an agreement in principle in place, being credit checked and had an affordability assessment carried out and early as possible.
A mortgage broker in Manchester like us can help you with this. In a lot of cases, we see mortgage applicants shoot through the moving home process just as fast as a cash buyer would.
When you take out a mortgage, you are taking out a loan. This loan is a huge financial commitment; it’s likely to last well over 20-25+ years. With a cash offer, you are avoiding owing money back.
You also won’t receive interest on your offer, as you’re paying with cash. If you had a mortgage, the interest would possibly push up your monthly payments.
When you don’t have the funds in place to make a cash offer, your next choice is to take out a mortgage.
Instead of using your life savings on a property purchase, you have the choice to save that money and take out a mortgage. Both options result in the same thing! And, depending on your credit score, obtaining a mortgage may only require 5% of the property’s value as a deposit.
You’ll pay back a mortgage in monthly instalments. This allows you to pay back a bit at a time and in some cases overpay if you want to. Monthly costs will vary depending on your interest rate, mortgage product and the property that you’re purchasing.
If you’re viewing properties and the listing says “cash buyers only”, you should be careful with this property. It’s quite likely that the property has something wrong with it. If it is the case that the property is damaged/need repairs, you probably won’t be able to get a mortgage on the property anyway. You could be dodging a bullet if you are choosing a mortgage over cash here, as a cash buyer may be buying into a bad property.
Despite not having to, we’d always recommend that you get a property survey carried out on the property you’re planning to buy. This applies to both cash buyers and mortgage applicants.
Diving into a purchase blind could put you at a slight disadvantage to someone who has a mortgage advisor in Manchester by their side. Your advisor will make things as simple as possible when helping you through your moving home process.
We aim to deliver a fast and friendly advice service. A mortgage broker in Manchester could be the thing that you need to get you through your moving home process. Get in touch with our team for a free consultation.
A lender will need to see your bank statements to learn more about your spending habits. They will analyse your bank statements to determine whether or not you are the sort of person who can manage your money responsibly and can afford to keep up regular mortgage payments.
After all, a mortgage is likely the most significant financial commitment you will ever make in your life and is not something to be taken lightly.
You have several ways to obtain your bank statements either by post, over the counter at your local bank or print from your online banking platform.
As stated above, they need to know you’re responsible with your money. One of the things they’ll be looking at is if there are any overdrafts. Using this often is not necessarily a bad thing; regularly exceeding the overdraft limit is not ideal.
More factors to be careful with are potential returned direct debits, showing a lender you are not consistently reliable, and not disclosing loans at the application stage won’t look good if the lender finds any outgoings on your bank statements that you failed to mention.
Another awareness is if you have missed payments for personal loans and things such as credit cards. What will impress the lender is demonstrating that you handle your money well and meet payment deadlines.
If you have a history of gambling, the occasional bit of fun is harmless, but if you are frequently wagering significant amounts of money, whether you’re making it back or not, the lender will consider whether or not these transactions are reasonable and responsible.
For more information, check out our article “Do Gambling Transactions Look Bad on My Bank Statements?”
The answer is simple – be sensible. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments.
Ensure that your bank account is conducted in a manner that shows you are reliable and manage your finances well.
The first thing we’d suggest is that if you are a frequent big spender, you take a break for some time. During this break, you will find yourself in a better financial state and could improve your mental health.
If you need to save some extra money, some choose to cook at home instead of takeaways, stop treating yourself to unnecessary large purchases, and limit your subscriptions; this will help free up additional cash to ensure you can pay bills on time.
This boils down to simply being sensible and planning with plenty of time ahead of what you’re looking to do. The further away you find yourself from bouts of debt and financial uncertainty, the better your chances will be with a lender.
Whether you’re a first time buyer, moving home, or self-employed in Manchester, it’s always essential to keep on top of your finances.
If you have a history of bad credit history and are unsure of what to do next, you can always enquire about specialist mortgage advice in Manchester by getting in touch with us today. We’ll advise as best as we can to help you through your mortgage journey.
Regardless of your mortgage situation, you could be a first time buyer in Manchester, a home mover or looking to remortgage. Your lender will always want a copy of your bank statements.
They will analyse your bank statements to determine whether or not you are the sort of person who can manage your money responsibly and can afford to keep up regular mortgage payments.
It would help if you thought about your statements and what other elements of your banking say about you. One trend that has come into highlight is the question of gambling transactions on bank statements.
There is nothing illegal about having an annual flutter on the grand national or regular use on licensed gambling sites. However, even the bookmakers and gambling advertisers urge customers to ‘gamble responsibly’.
This is the same message to bear in mind when it comes to applying for a mortgage. It is not the lenders’ job to tell you how to live your life, how you spend your money or preach on moral rights and wrongs of gambling. They do however have a duty to lend responsibly.
If lenders need to prove to the regulators that they are making careful lending decisions, it isn’t entirely unreasonable to expect the people they lend to be responsible for their finances.
As we mentioned above, just because you have the odd gambling transaction on your bank statements doesn’t mean your mortgage application will get declined. The lender will consider whether or not these transactions are reasonable and responsible.
Your lender will mainly look at the frequency of transactions and the overall impact on the account balance. If these gambling transactions are small and infrequent, making no significant impact on your overall regular credit bank balance, then they are likely to be overlooked.
On the contrary, if you bet most weeks and are constantly overdrawn, the lender is likely to view this as irresponsible and could decline your application.
Remember, lenders are financial institutions that either directly or as part of a wider group often provide various products, such as current accounts, overdraft facilities, credit cards and personal loans. The way in which you conduct these accounts will impact your ability to obtain a mortgage.
For example, having an overdraft facility and occasionally using it is not inherently wrong; regularly exceeding the overdraft limit is not ideal.
Your lenders will look for excess overdraft fees or returned direct debits because these would generally show that the account is not being well conducted.
Other things to look out for include credit transactions from pay-day loan companies; “undisclosed” loan repayments. They would look out for any missed payments and consider how much of a typical month is spent overdrawn.
The answer is simple – be sensible and, if possible, plan ahead. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments. Making sure that your bank account is conducted in a manner that shows you are reliable and manage your finances well.
If you are a regular gambler, maybe think about taking a break or setting limits, there are features on most gambling apps that can help with this. As well as helping your mortgage application, this may also be good for mental health.
If you are a first-time buyer, home mover or looking to remortgage in Manchester but need some support or guidance, you should get some specialist advice from a mortgage advisor in Manchester.
Our advisors can guide you through the whole mortgage process and help you with your application and get you on track so that lenders will be impressed.
If you are a First-Time Buyer in Manchester or a Home Mover in Manchester and have put in your offer for a property, you may be wondering what the next step in your mortgage process is.
That next step will be to take out a property survey, as a means of establishing what the condition of the property is, so you can figure out if it is worth the amount that you are paying for it.
If the surveyor happens to find something and reports it on the survey, then the buyer will be in a position by law to approach the seller and further negotiate a price that will cover the costs of any required work that may need doing to the property.
There are 3 main types of property survey available to home buyers.
A Mortgage Valuation survey will consist of basic, straightforward valuation. This kind of valuation will be required to be paid for by the person taking out the mortgage, in order to secure a mortgage offer.
It should not be confused this with a full survey. The mortgage valuation confirms to the lender that the property you are looking to borrow money to purchase, is worth exactly what you’re willing to pay for it.
This type of home valuation will not highlight any repairs that are needed, though it may still point out any obvious defects that they would recommend you further look into and use your own judgement on.
This type of survey will cover structural safety and highlights any apparent problems that will require your immediate attention, including things like any damp that exists in the property, as well as anything that doesn’t meet current building regulations.
This report will offer an independent report of your property by an expert in the field. To ensure that two surveys aren’t being paid for, it is recommended to ask the mortgage companies surveyor to carry out this report on your behalf, though be wary that it may take a couple of hours to complete.
A full structural survey is better suited for properties that are older and those of a non-standard construction.
Depending on various factors such as property size and type, a full structural survey will possibly take longer than a Homebuyers’ Report, sometimes taking as long as a day to complete.
A full structural survey will provide a detailed insight on the condition of the property and highlights issues that should be investigated further before continuing with making a full purchase, to provide the buyer with a more settled peace of mind.
You can find a surveyor to carry out a Homebuyers’ report or building survey through the Royal Institution of Chartered Surveyors.
As a general rule of thumb, the fewer addresses tied to your name and accounts the better, when it comes to your credit score and applying for mortgages. Many First-Time Buyers in Manchester and Home Movers in Manchester feel like they are becoming savvier and utilising their previous and current addresses to their advantage.
We see it as a fairly common practice for applicants, where they may have moved out of their parents address into rented accommodation and happen to think it is a great idea to leave their bank statements, credit card and Electoral Roll information registered at one of the addresses that they previously lived at.
Whilst this sounds like an ideal situation for some people, the truth is that it is now a flawed strategy. Almost every single time, if you have moved to a new address, there will be some record of this, somewhere on your credit report.
This could be from a delivery address when you have ordered something online or a car and, or home insurance search, amongst various other things that may be tied to an address.
We would say that by a country mile, the best strategy for you, if you are thinking about taking out a mortgage, is to get all of your accounts, cards, accounts and electoral roll changed over to your new address. Keep everything consistent and accurate to one another.
When you update your address on your credit file and electoral roll, ensure you double-check the date in and date out. If you do happen to make a mistake with either of these dates, it may look like you are living in two places simultaneously. Correcting your addresses and dates is a more open and honest way of trying to apply for a mortgage with a lender.
The government’s Lifetime ISA is a fairly new scheme that was introduced in 2017. Most people, if they’ve heard of it, confuse this ISA with the Help to Buy scheme. The Help to Buy ISA was actually discontinued in 2020 when the government decided that they were going to push the Help to Buy Equity loan over its predecessor.
Surprisingly, the lifetime ISA is completely different, it can help you build up savings for your first home or save for later in life. As a Mortgage Broker in Manchester, we are going to show how the Lifetime ISA can help you buy a home as a First Time Buyer in Manchester.
The Lifetime ISA is a government-led scheme that helps First Time Buyers raise money for their first home or people wanting to save for later in life. ISA stands for Independent Savings Account, so the Lifetime ISA works exactly how it sounds, it’s a savings account and the best thing is that your money grows tax-free.
There is no minimum to how much you can save each month, there is just a £4,000 a year cap. Also, as a bonus, the government top up your total annual savings by an extra 25%, so if you meet the £4,000 mark, you will receive an extra £1,000. This brings your total yearly savings to £5,000.
Even if you save £60 a month (£720 a year), you will recieve a £180 free bonus from the goverment. You should know that once the money is inside of the savings account, it cannot be withdrawn without a fee.
There are two different ways to how you can spend your savings. You can either use it to buy your first home or save it up for later in life.
You can use your Lifetime ISA savings to purchase your first home. This has to be your first purchase, it does not affect you if you’re currently renting. If you want to withdraw from the Lifetime ISA without using it to purchase your home, you’re going to have to face a 25% withdrawal charge. This is why you have to be careful of how much you’re putting into it.
As a Mortgage Broker in Manchester, we recommend looking at the Lifetime ISA when you are struggling to afford your deposit or you are planning to buy your first home within the next 5 years or more. You can keep building up your ISA until you want to withdraw the funds for your property purchase.
We only see clients who are using the ISA as their deposit for their first home. So if you are wanting to save for later in life, you can find more information here on the government’s official webpage: https://www.gov.uk/lifetime-isa.
There are a couple of things that you’ll need to consider when it comes to qualifying for the Lifetime ISA. Here are the requirements for when you are looking to use it to purchase your own home.
Lifetime ISA to buy your first home:
If you are interested in the Lifetime ISA scheme and think that it is for you, feel free to get in touch with your Mortgage Broker in Manchester and we can help you get the ball rolling with your ISA.
Are you interested in the Lifetime ISA and want to begin your mortgage journey or maybe you are curious about other schemes that could match your situation? If so, now could be the perfect time to get in contact with an experienced Mortgage Advisor in Manchester.
We don’t just specialise in Lifetime ISAs, we have experience with Self Employed mortgages, Remortgages, Buy to Lets. We love a good challenge and we would love to try and help you make that first step onto the property ladder.
Most homeowners in Manchester will never imagine that they’ll miss their mortgage payments, although sometimes an illness or family emergency can cause financial struggle, especially for those with minimal savings and low-income.
It is even more difficult for those who don’t have an insurance policy that would cover their mortgage payments in such a possible event or outcome.
So, we are here to answer the following questions: what should you do if you think you will miss a mortgage payment and how can you recover afterwards?
If you think you’re going to miss an upcoming mortgage payment, the first thing to do is inform your lender. As soon as you miss a payment, this gets instantly marked on your credit record, which could later affect your ability to get a mortgage/remortgage in the future.
Your lender is required to offer support and guidance to borrowers going through a difficult time. Depending on your circumstances and your lender’s criteria, there may be options available that can help you avoid missing a payment.
The most important thing is that you don’t miss the payment because your credit record gets impacted immediately.
Don’t worry about feeling embarrassed, you are not alone—many people will be in the same or worse situation, you won’t be the first or the last who has contacted a lender about this scenario.
If you don’t manage to sort out an alternative arrangement in time and cancel your direct debit or allow your payment to bounce due to lack of funds, your lender may take several attempts to retrieve the money. Depending on the lender, there could usually be several attempts and maybe a period for one missed payment, but you could be hit with a late payment fee, hence impacting your score. Therefore, your ability to get accepted for a mortgage and the amount that you can borrow in the future may be affected.
Once you’ve missed a payment, your lender will want an explanation as to why this had happened.
This will be dependent on the number of missed mortgage payments and also how much time has passed since.
It may still be possible depending on the answers to the above, but it will most likely limit your options and the deals available will typically have higher interest rates.
Ultimately, the recommended option is to protect yourself against missed mortgage payments and to take out income protection insurance that may cover you if you can’t pay. Some think they’ll never need it, but ultimately not having something in place, such as a protection policy or savings to fall back on, can add to what is already a difficult situation.
If you need any additional support or guidance, please speak to one of our Mortgage Protection and Insurance Specialists in Manchester and find out which insurance will benefit you.
As life goes on, you will undoubtedly want more living and breathing space in your home, it’s only natural. There are always ways to make more space; when it comes to living space, you can either physically move home or extend your current home, the choice is yours. Generally speaking, it can be cheaper to remain inside your current home as you don’t get all of the fees that are attached to moving home. So, if you’ve found a home that you can see yourself living in for years to come, it may be more beneficial to carry on living in the property.
If you choose to extend your home over Moving Home in Manchester you have to think about what you want from extending your home. Do you want a kitchen extension? A conservatory? Maybe a bigger garden? Whichever option you choose, you will still need to decide how you are going to do it.
This article is going to focus on the Remortgage side of things and how you can Remortgage your home and come out with an extension.
Improving your home through a Remortgage could be the smartest thing to do, especially if you’re looking for a better mortgage rate anyway.
When you Remortgage / take out a product transfer, you are replacing your current mortgage deal with a new one. A Remortgage is when you swap deals through another lender and not your current one and a product transfer is when you swap products but stay with the same lender.
When Remortgaging for home improvements, you’re taking out another mortgage deal (through either way of remortgaging) to incorporate the costs for the intended home improvements. Your payments might be slightly more per month or your mortgage term may just extend for a few years or more. You may be paying more, but you end up with a lovely, new home extension.
Not only does Remortgaging for home improvements give your property a makeover, but it may also save you money on all of the fees that are associated with Moving Home.
Home improvements will likely increase your property’s value too. When it comes to selling the property further down the line, this can become incredibly useful when you are trying to get more money for your property.
Whilst it can save money, it’s worth noting that home improvements come with some significant costs of their own. These can include:
In order to Remortgage for home improvements, you may need to release some equity within your property. You can do this at the point of Remortgaging.
Equity Release can be quite a specialist subject, so we would recommend that you speak with a Mortgage Advisor in Manchester before making any decisions. You may not even need to go down the equity release route so it’s best to find out whether you need to or not first.
You’ll need to speak with a Mortgage Broker in Manchester in order to get the ball rolling on something like this. Remortgages tend to go a lot smoother and quicker than the first time you took out a mortgage, so you’ll hopefully be enjoying a nice and easy process once you’ve been assigned your Remortgage Advisor in Manchester.
Here at Manchestermoneyman, we have Mortgage Advisors in Manchester working all throughout the day to help with our customer’s needs. If you’re looking to Remortgage your current property for home improvements or would like to further discuss the pros and cons of that versus moving home, get in touch and an advisor will run through all your questions.
If you have ever thought about Moving Home in Manchester, you have likely found yourself wondering which areas are the best places to live in Manchester. To help you make an informed decision, we have put together a list of the best areas to live in and around the Manchester area.
Altrincham is a large market town situated in Trafford, Greater Manchester. Having been through generations of cultural and industrial change, the town has become quite the location for First Time Buyers in Manchester and Home Movers. In fact, it has even been described as one of the best places to live in the northwest!
You may have to pay a higher amount to live in Altrincham, however, with the types of housing that is available, it’s definitely worth it. Altrincham is also a great place to bring up a family; the local area of Timperley is a good place to look if this is why you are wanting to buy a home in Altrincham.
Home to halls, gardens, canals, indoor markets and music venues, Altrincham is an amazing place to live. If you choose to live in Altrincham, we are sure that you’ll enjoy your stay and hopefully find your dream home!
Chorlton is a small suburban area located 3 miles South West of the Manchester City Centre. Chorlton is a great place to live, the average housing price stands at £335,000 (May 2021). This is the perfect location for someone wanting access to the city life as well as the quieter, local suburban lifestyle.
Speaking of city life, from Chorlton, the Manchester City Centre is only a 15-minute tram ride away. You’ll find lots of transports links in Chorlton, there is no need to worry about the ease of getting to your place of work, getting from A to B and dropping your children off at school.
Even if you don’t wish to take regular trips into the city, there are still plenty of different things to do in Chorlton. You can find plenty of restaurants, cafes and pubs dotted around the area; each having their own unique but local feel.
If Chorlton sounds like the kind of place where you could see yourself living in the near or far future, make sure to get in touch and we will see how we can help you get your Moving Home process started!
The longest road in Manchester City Centre at over a mile in length, Deansgate is a location rich in history and is in fact one of Manchester’s most historic areas, with information on it dating back even as far as the 17th century.
The local high street is filled with various designer shopping opportunities, allowing for an enjoyable experience. If you wish to travel between the different areas in Manchester, you’ll find it has easy access to various popular locales and many different transport options to choose from, ranging from trams, to trains and even a shuttle bus.
If you like history filled locations that have a great high street and double as a transport hub for various nearby areas, Deansgate could be the perfect location for you.
As one of the most vibrant places to live in Manchester, Didsbury has something for everyone. With elegant greenery, noble properties, and a famous nightlife scene, it’s no wonder that this gem has been popular with First-Time Buyers in Manchester over the last few years.
Split into three areas: East Didsbury is famous for its excellent schools, West Didsbury has a selection of fantastic restaurants and Didsbury Village is home to a lively community, popular restaurants, hotels and a range of shops. Favored amongst families, Didsbury offers a quiet escape from the busy center of Manchester.
Easily accessible from Manchester City Centre, Didsbury has an excellent public transport system. You can choose from the train, bus or even the Metrolink.
As one of Manchester’s most popular area’s Didsbury is just one of the reasons that make Manchester such a wonderful place, and that’s why we recommend Didsbury for families as there are plenty of housing choices available.
If you are familiar with Rusholme, you know it’s nicknamed the “the Curry Mile” for a reason. Thanks to many curry houses, Rusholme is an area in Manchester with its own distinct culture and Asian influence.
High-performing schools make Rusholme an appealing area for families, while excellent transport links to Manchester City Centre make getting around a breeze. Suppose you’re looking for somewhere with plenty the conveniences and great food. Rusholme should be on your list of places to live in Manchester.
If you’re looking to live close to the city centre but avoid the premiums that part of city life throws up, Rusholme is the place for you. It’s an excellent area for First-Time Buyers in Manchester; from terraced to semi-detached housing, we are sure that you will find something that is for you.
5.2 miles south west of Manchester, just down the road from Stretford and Altrincham, is the large Trafford town of Sale. Popular with families, Sale has great local options for children’s education, with some regularly well-performing primary schools in and around the area. It doesn’t just stop there however, as there are plenty of secondary school options too, some of which are considered high in-demand.
There’s a great community feel in Sale, with a mixed variety of different people and even a volunteer run festival for people to take part in. If this hasn’t sold you on the area already, then let’s talk property prices. No matter the era of property you’re looking to buy, you’ll find the property prices to be a lot lower than expected, appealing to people from all walks of life.
Like much of the Manchester area, Sale too is rich in history, with potential findings suggesting even prehistoric life in this general location. For an affordable, historic and community driven area with great opportunities for your children to grow, a place in Sale could be just the home you’re looking for.
Salford is an ideal location for any media enthusiast as this city is a media hub surrounded by green belt land. Salford is a perfect place to live in, from its vibrant community to its thriving modern hub, putting it firmly on the home-buying map for First Time Buyers or Home Movers in Manchester.
Thanks to MediaCityUK and the investment in the area, Salford now homes more shops, restaurants and bars, but if this isn’t enough, the attractions of Manchester City Centre are always nearby. But this modern city development hasn’t destroyed its green spaces. Salford remains one of the UK’s greenest cities so that residents can enjoy waterfront, urban and rural living.
Supported by excellent housing prices, Salford is a great place to live in Manchester. Make sure that you don’t sweep this option under the rug.
We hope that our list has proved to be a little helpful in your decision making. Of course, you should still do your own research and visit the areas yourself, but we at least summarised the highlights of some of the best areas in and around Manchester, to really give you a feel for what they may be like.
If you are looking at Moving Home in Manchester and would like some help with getting the process started, please do Get in Touch. A trusted and dedicated Mortgage Broker in Manchester like ourselves will work hard to try and guide you through the whole process.
Buying a home, whether you’re a First-Time Buyer in Manchester or have experience already in the property market, can be a rather stressful and an expensive process. The cost of all this only goes up even more when you are looking to buy and sell at the same time. Here is a helpful breakdown of some of the expenditures you will have to consider when buying a home in Manchester.
You should know that you only need to deal with estate agent fees when it comes to selling a property. The prices of their services can vary between companies, so make sure you try to find the best price and leading service before diving into anything concrete. The cheapest agents tend to be online ones who don’t have to worry about the costs of maintaining offices.
If you aren’t too sensitive to how much something is going to cost and you would prefer a more personalised service, you may have to pay an extra 1-2% of your properties selling price.
The fees usually have room for negotiations, especially in a “seller’s market”. A seller’s market is where agents are fighting to get your instruction, because of lack of houses on the market.
If you are thinking of taking out a mortgage, then a lender will need to be certain of whether the property is worth what you’re actually going to be paying for it. If you are lucky, your lender may offer you this service for free, although they may not send you a copy of the report in return.
From time to time, we have seen that lenders may not offer a free valuation. When this is the case case, you may need to pay a few hundred pounds for one to be undertaken. You can expect to pay roughly double that price if you would like to upgrade to a more in-depth Homebuyers Report.
Whether you wish to elect for a more detailed report or not, is entirely up to your choice. Your decision will likely depend upon the age and type of property you are purchasing. This will be along with any fears/concerns you have about the property in question.
Some mortgage products offer comparatively cheap rates. Although this benefit can be outweighed by an arrangement fee made payable to the lender. Not every product will have one, so the cost, for example, could either be nothing at all, or as much as £999, possibly even more than that, depending upon the lender or product you have gone with.
Sometimes these are to be paid as upfront costs or, as some choose to do, you can opt for these to be added to the balance of your mortgage. Although because of this, you would then incur further interest charges. As an experienced and hard working Mortgage Broker in Manchester, we are able to compare mortgage deals factoring in these costs, to give you a more general overview of what your costs may be.
You’ll need to take up the services of a solicitor, wherein the fees quoted by various firms can differ by huge amounts. A very rough estimation for a straightforward purchase with a company, is probably around £600 for a low-value property. You will need to give the property address, as well as give the purchase price to obtain quotations on what you’ll have to pay. This is the case whether freehold or leasehold.
The key points to cover when asking for a quote are:
The solicitor collects on completion of the property purchase, in addition to your Solicitor’s fees and disbursements. You will be required to pay this fee. Full details can be found here: https://www.gov.uk/stamp-duty-land-tax. An example would be if a residential purchase was £180,000, the Stamp Duty would be £1,100.
Your Mortgage Broker in Manchester will usually charge a fee for their dedicated mortgage advice service. Please try to use a company that charges on mortgage offer only, and doesn’t request any payment upfront, as this means if things happen to fall through, you walk away without a payable fee. Avoid any application fees where your money will be at risk too.
The cost of moving your furniture can vary by large amounts, depending on the service undertaken. It will depend on the level of service you are looking for. If you are quite happy to hire a van and roll your sleeves up, or even hire the services of a local man with a van, this can cost less than £200. On the other hand, if you are looking for a company that provides the full service this can be well over £1,000.
If you would like to discuss the costs involved in obtaining a mortgage in more detail then please don’t hesitate to Get in Touch and speak with a Mortgage Advisor in Manchester today.