Payments
There are a number of payments associated with most new mortgages.
- Booking Deposit
- Legal Cost
- Valuation Report
- Surveyors Report
- Stamp Duty
- Deposit
- Estate Agents Fee
- Mortgage Protection Insurance
Booking Deposit
A booking deposit is paid to the estate agent handling the sale of the property you wish to buy normally within 21 days. This deposit is subject to contract, which means either you or the seller can back out of the transaction prior to the exchange of contracts.
Legal Fees
Legal fees are normally in the region of 1 to 1.5% of the purchase price of the property. You will need to add VAT at 21% to this figure. You will also have outlays such as land registry and registry of deeds, fees and searches. We recommend that you shop around before you engage any solicitor.
Valuation Report
A professional valuer from a list of approved valuers has to take a look at the property you are buying and prepare a valuation report. This report indicates the value for mortgage purposes only and is carried out in behalf of the lender. Expect to pay in the region of _100-_130 for this report.
One of our Mortgage Advisors will help you find a valuer in your area.
Surveyor Report
If the property is in poor condition or if the valuer/solicitor recommends it, a structural report will be required on the property you want to buy. This report is much more detailed than the valuation report and involves a structural examination of the property.
If a structural report is advised, we recommend that you contact an independent architect or engineer who will carry out the report for you. Expect to pay in the region of _350-_450.
We would recommend you arrange a report on any property you are considering purchasing, for your own peace of mind regardless of the age of the property.
Stamp Duty
Stamp duty is a tax you pay when you purchase a property. If you are a first time buyer there is no stamp duty payable for both new or second hand homes if the property is valued under _317,500. The table below lists the rates of duty you will pay if the property is a second hand home:
| Purchase Price | Non First Time Buyer |
| Up to _127,500 | Exempt |
| _127,001 — _190,500 | 3% |
| _190,501 — _254,000 | 4% |
| _254,001 — _317,500 | 5% |
| _317,501 — _381,000 | 6% |
| _381,001 — _635,000 | 7.5% |
| Over _635,000 | 9% |
If you are buying a new home, you won't have to pay stamp duty if:
- The floor space is equal to or less than 125 square metres (1,346 square feet); and
- The home is your only, or main home for at least five years.
Deposit
At signing of contracts you will need to pay your non-refundable deposit. Ensure that your formal loan approval from Cornerstone Mortgage Company been obtained to allow contract signing to proceed.
Estate Agent Fee
Most people who are selling as well as buying a home will need an estate agent. Fees are normally in the region of 2% of the selling price, before VAT and advertising charges.
Mortgage Protection Insurance
A mortgage protection policy is designed to protect your partner, family or dependants if you die before you have finished paying off your mortgage. The policy is designed to cover the amount outstanding on your mortgage and the proceeds are paid directly to your mortgage lender.
Mortgage protection assurance is a legal requirement on the mortgage of your family home. We arrange your life cover and answer any questions you may have.
