Gone are the days of 0% deposits. Most lenders will consider a deposit as low as 5% but as a general rule, the higher the loan to value (LTV*), the higher the interest you pay. In order to keep your mortgage repayments as low as possible we recommend aiming to secure a higher deposit if possible.
*LTV – amount you are borrowing compared to the purchase price or property value (whichever is lower).
Other Costs/Your Checklist:
Saving hard for your deposit shouldn’t overshadow the other costs associated with buying and selling property as these can add up! Many people simply aren’t aware of the additional costs or just simply forget to factor them in:
- Land & Buildings Transaction Tax (LBTT) - previously known as Stamp Duty Land Tax (SDLT) came into force in April 2015 in Scotland with considerable changes depending on the cost of the property being purchased. The Scottish Government, in line with Westminster, launched further updates on 1st April 2016 - 3% LBTT charge when people purchase an additional investment property or second home – visit www.gov.scot/Topics/Government/Finance/scottishapproach/lbtt for more information
- Home Report – if selling this is now required by law in Scotland
- Additional Specialist Reports e.g damp/dry rot proofing
- Conveyancing fee – the legal fee associated with legally selling or purchasing a property
- Registers of Scotland fee for registering title deed and mortgage deed
- Estate agency fee if you are selling
- Moving costs
- Furnishing the property, white goods, new carpets, immediate repairs etc
- Mortgage Administration Fee (if applicable – see opposite for our fees)
Our Fees Explained…
Due to the high level of administration and work involved coupled with the changes in mortgage legislation we charge a Mortgage Administration Fee payable on application - this fee covers the following and is non-refundable:
- Liaising with you to ensure we provide you with the correct mortgage advice based on your circumstances
- Sourcing the mortgage arrangement, completing the decision in principle and obtaining the illustration
- Collating all supporting evidence from you to satisfy the lenders requirements
- Full submission of your mortgage application and supporting documents to the lender
- Liaising with you, the lender, valuer, solicitor etc until the mortgage is fully completed
- Removing the burden of you having to deal with the whole mortgage application/administration process
Our highly experienced Mortgage Advisers will take the time - at your pace - to understand your requirements and circumstances, talking you through the full range of mortgage options, creating a tailored solution that’s right for you now and in the future.