It is also worth
remembering the additional costs, on top
of your deposit and mortgage that you will
be expected to pay.
For example,
you will have to pay stamp duty, which
is 1% of the purchase price for properties
between £120,000 and £250,000,
then 3% up to £500,000 and 4% over
that amount.
Plus you will
have to pay for the survey and/or the valuation
of the property, plus solicitor’s
fees.
You may also
have to pay an arrangement fee for the
mortgage and possibly a Higher Lending
Charge - which is insurance for the lender
for you defaulting on your payments when
your property is worth less than the loan.
Add all these costs to the cost of your
property and you may need a mortgage of
105% or more, which is possible.
