Applying for a mortgage brings with it a large amount of responsibility and it is essential that you are aware of the fees involved before you commit.

Choosing the right type of mortgage is a big task in itself and the last thing you want is to be stung with hidden charges.

With this in mind, this article aims to explain all of the charges involved in getting a mortgage.

mortgage-charges

Booking Fee

This is the very first online bill payment that you will come across when buying a house. You may be lucky and be able to avoid this fee but this will depend on the specific mortgage lender you have chosen. You will need to pay this fee upfront as it books the loan you need while your mortgage is approved but if the sale falls through, you will not be refunded.

Arrangement Fee

As soon as you apply for a mortgage, you will need to pay an arrangement fee. This covers the cost of setting up your mortgage. You have the option of paying this fee upfront but if you choose not to it can be added on to the mortgage. However, it is worth noting that if you add this on to your mortgage it will cost you more in the long run as you will have to pay interest on it.

Legal Fees

Mortgage-Closing-CostsLike any financial transaction, there is legal paperwork involved. The legal fees involved when buying a house include stamp duty and any legal work carried out.

Valuation Fees

Your mortgage lender will charge you a fee to survey your new property. Some lenders will offer you this service at no charge but it essential to realise that this is only a basic inspection of the property in question and you may wish to do a survey of your own.

Additional Charges

When buying a house, you may come across a number of additional fees or charges that you hadn’t foreseen. For example, if you require advice from a mortgage specialist, this could cost you. If you do your research online, you could find a mortgage provider that will offer you this service free of charge.

Do your Homework

If you are purchasing a property for the first time, it is a wise move to find out everything you can about the mortgage process and any hidden charges that may be involved. Capital Fortune can offer expert mortgage advice to first time buyers.

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