If you're re-mortgaging, it's not uncommon for the mortgage provider to meet the cost of your valuation and legal fees. You may have to pay an application or booking fee. If you're buying a new home, you usually have to pay for a valuation, meet your own legal costs, and possibly pay an application or booking fee. You may also be liable for stamp duty.
The valuation depends on how much you wish to find out about the condition of the property. The three most common valuation reports are: A basic valuation, to establish the property’s value A home buyers report, which also identifies works to the property that need immediate attention A structural survey, which will give you a full analysis of the structural integrity of the property, identify current and future works required, and confirm the value
What you can borrow is based on what you can afford, and each mortgage provider has different affordability criteria. Your advisor will complete a full income and expenditure assessment to help you establish how much you can borrow.
Interest only mortgages are still available but you will need to meet very strict qualifying criteria. You will also be required to have an adequate repayment vehicle linked to the mortgage. To avoid the risks associated with an interest only mortgage most mortgage providers and clients prefer repayment mortgages. This means your mortgage will be fully repaid at the end of your term, should you make all of your payments.
If your interest only mortgage term has come to an end, or is due to end soon, and you still owe money and have no means to repay, then StepChange Financial Solutions may be able to help. We provide free and impartial advice to help you understand your options and ensure you have the knowledge and confidence to make informed decisions.