Moving home is expensive enough, and the same is true of moving to the TW1 area. When you are considering whether or not you can afford to move you should take into account all of the costs involved, not just the obvious ones like how much the house is going to cost.
Here are some things that you should think about:
• The Deposit
In order to secure the property you will need to place a deposit down on it, the type of mortgage you are able to attain greatly depends on how much of a deposit you are able to save up. If you had say 5% deposit, this would mean your mortgage would be at 95% which is quite high risk and usually carries some additional interest charges. You will need to have the deposit available in the bank and ready to transfer to the seller as soon after the offer has been accepted as is possible. If you were able to put down a 10% deposit on your property, the remaining 90% would be paid from your mortgage provider to the seller upon completion of the sale.
• The fees charged by mortgage providers for setting up and running a mortgage for you.
Of course you will need to pay monthly repayment amounts to your mortgage provider each month, the amount will be pre-agreed as will things like interest rates, but there are some things on top of this that you will need to pay your mortgage provider. One of these are higher lending charges, this is something that is applied to mortgages that are at 90% or above, the mortgage provider considers loaning this money to you more high risk and so applies an additional charge to cover the fact that they are taking this risk.
Another payment that you may need to pay is stamp duty, whether or not you need to pay this greatly depends on the property that you are buying, where that property is located and how big it is. If the property is subjected to a stamp duty this is usually charged at a percentage of the overall value of the property and is typically between 1 and 3%.
If you are able to pay off some or all of your mortgage before the contract is due to run out, then you will most likely have tp pay what is called and early repayment fee. The mortgage provider will be losing out on the interest charges from your loan if you pay it off early, this is therefore to cover some of that. All of this will be noted in the terms and conditions of the contract you are asked to sign with the mortgage provider.
Whether or not you are paying off your mortgage early, when it comes to exiting from the mortgage agreement it is likely that you will need to pay an exit fee. Only by paying this will you release the deeds to the house, and this is usually charged to pay for the administration charges involved in finishing the agreement. Again, whether or not you need to pay this will be set out in the terms and conditions of the mortgage contract.
• Solicitors fees
You won’t be able to buy or sell an house without using a solicitor to cover all the legal legwork for you. How much you will need to pay your solicitor greatly depends on how expensive your solicitor is, always be sure to shop around for quotes before deciding which one to use and understand all of the charges involved.
• Surveyor Charges
• Removal Costs