The costs of buying  -  The costs of paying your mortgage

Required Reading


  


The costs of buying - The costs of paying your mortgage


As a guide to how much you are likely to find yourself paying for your mortgage, Table 8 shows the cost of monthly payments for an 80% mortgage on three properties, again priced at £115,000, £125,000 and £135,000, at various rates of interest. The figures assume that you are taking out a mortgage over 25 years, which is the usual period these days. If you decide for any reason to take out a shorter-term mortgage, it will be more expensive: figures for a 20-year mortgage, for example, are shown in Table 10 in Section 5.

When you are doing your budgeting, remember that, though the mortgage is likely to be the largest cost, it is not the only one you'll face. You will have rates, water rates and electricity bills to pay and maybe telephone and gas bills as well. Most of these bills may be paid in monthly instalments if you ask; you can get an idea of how much you will face by asking for details from the person from whom you're buying the property (usually your solicitor will ask this sort of question). If you are buying a flat, remember that you will also be charged a yearly ground rent and possibly a regular service charge as well.


Looking for a 90 percent mortgages

The costs of buying - Mortgage guarantee policy


The building society legal fees shown in the table are estimated on the basis of a loan of 0.8 of the purchase price. If you are borrowing more than this, the lender will want you to take out a mortgage guarantee policy. If you are looking for, say, 0.95 of the purchase price, it is likely to cost up to 160 for the 115000 property, 1100 for the 125000 property and 1145 for the 135000 property. You may be able to add this to your mortgage and repay it over 25 years you may be asked to pay it in a lump sum.
. . .... see: The costs of buying - Mortgage guarantee policy


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.