The costs of buying  -  Property insurance

Required Reading


  


The costs of buying - Property insurance


One of the conditions of the mortgage, generally speaking, is that your house (the building society's security) is properly insured. Most societies will also stipulate a figure that the place must be insured for; in many cases this will be well in excess of the purchase price. It doesn't necessarily mean you've got a bargain, but the insurance has to cover full replacement cost of the property.

If you are buying a flat, the place is probably already covered by insurance arranged through the freeholders or their agents, in which case the lender will require proof that the building is covered and that the sum is sufficient.

If you are buying a house, procedures vary among lenders. Most will arrange the insurance under a 'block policy' covering all their properties. In that case, they may ask you for the premium straight away, or they may wait until the renewal premiums become due. Section 10 deals with the subject of insurance in more detail. Don't forget also that you are responsible for arranging insurance of the contents of your property and this again will be an expense to be faced as you move in.

Remember, though, that you will have to allow extra for other costs such as the following:

1 Extra payments for fixtures and fittings.

2 Premium for contents insurance.

3 Transfer of telephone; connection of gas or electric cooker.

4 Redirection of post.

5 Extra life assurance (if a repayment mortgage is chosen).

6 Mortgage guarantee policy (see below).


Looking for cheapest mortgages

The costs of buying - The move itself


You must of course remember that actually moving all your worldly goods from one place to another is going to cost you money. The cheapest way is to do it all yourself, with cardboard boxes begged from the local off-licence, which would often make sense in the case of first-time buyers.

If you decide to have a firm of professional house removers do the job for you, it is a good idea, again, to shop around. Estimates vary: you may find yourself paying anything between 1200 and 1400 for the contents of an average four-bedroomed house.

If there are special difficulties flat is on the top floor with no lift, for example, or the place fronts on to double yellow lines making parking a problem . . .... see: The costs of buying - The move itself


Current Mortgage Offers

  • At Commercialise Yourself you can compare mortgages using our repayment calculator, look for special offers for first time buyers or for 95% loan to value mortgages and see the most popular choices, Nationwide, Accord etc, we now even have a buy to let section for the brave or heart or strong of pocket! You can send us an email if you want to know more about mortgages and what we do and we will get back to you as soon as we are able. offers@commercialise.org.uk

     

    Finding the right mortgage can be stressful, but we’re here to help you every step of the way.

    Even if you have no proof of income, poor credit rating or facing repossession of your home, we can normally say YES (even if the high street lenders have said NO)!

    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 7.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but our average fee is 2.36% of the loan value. We are authorised and regulated by the Financial Services Authority for regulated mortgage and non-investment insurance contracts.