Step 7: Finalising your Mortgage
You can see the finishing line now. Once you've made an offer and it's been accepted, you need to get your mortgage approved. If you've already got an Agreement in Principle, this stage should be a bit easier. In any event, it's important to finally decide exactly how much of the agreed purchase price you're going to pay with your saved money, and how much you want to borrow. Remember that there are lots of things you'll have to spend money on:
  1. Solicitor's fees, survey fees and stamp duty (a government tax on the price you pay for the property). Stamp duty is collected by your solicitor, who will give you a cost estimate.
  2. Protection. If you can't meet your mortgage payments and other expenses in the event, say, of being unable to work, the implications for you and your family could be uncomfortable to say the least. Our advisers can help you decide whether to protect your financial security by taking out some form of protection policy: see step 9 below.
  3. Buildings and contents insurance: see step 2 above. Again, our IFAs can advise.
  4. Moving costs. Whether you're using a professional removals firm or borrowing a van and roping in your friends, there will be some costs involved.
  5. Repairs, decoration and furnishing. Estimate these as best you can, then add a bit on. Most people get quite houseproud when they move into their first home; buying lots of tasteful furnishings and trimmings is fun, but expensive.
Tot up all these costs, add 10% on for safety, and subtract the total from the amount you've saved. That's how much you can put down as a deposit. The rest of the purchase price will have to come from the mortgage provider.
Terms and Conditions - Privacy Statement - © Copyright 2007 ESPC UK Ltd