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Guide for Buyers and Sellers | 9
Redemption penalties mortgage lender can ascertain the size of loan it than by the value of the property.) They will also
Redemption penalties are charged if you wish to is prepared to make against the property. register you with the local Land Registry so your
repay the mortgage or remortgage within the rights as the legal owner of your new home are
period of a discount, tracker rate or fix - or Survey fee recognised.
sometimes even after the special offer has ended. Since there is no recourse once you have bought
Again shop around because these penalties can your home, a full survey is recommended before Buildings insurance
vary greatly from lender to lender but a typical buying it to ascertain that it is not suffering from This is to cover you in the event of serious dam-
penalty is a payment to the lender of three to six structural problems such as subsidence, dry rot age to your home, for example from fire or
months’ worth of interest. or vermin. This is payable in addition to the val- flooding. All lenders insist that you have this
uation. insurance for your new home. As with all insur-
Exit fee ances, premium costs and level of cover can vary
This fee is payable when you redeem your Stamp duty enormously, so it's worth shopping around.
mortgage so is pretty much unavoidable. The 1 per cent if your new home costs between
mortgage exit administration fee again varies £175,000 -£250,000; 3 per cent if your home
from lender to lender, with some not imposing costs between £250,000-£500,000; and 4 per cent Portability
such a charge and some charging as much as if your home costs more than £500,000. Of course, if your mortgage is portable then you
£300. can just transfer it over to your new property!
Legal fees
Other costs
Your solicitor or conveyancer will carry out a
local search of the area the property is in to
ensure that there are no special building restric- For information on the
Property valuation tions on it - or any plans to build a motorway homebuying process, please see
This must be carried out to confirm the property through it! (The cost of search fees varies by the our guide on How to Buy Your
is suitable for mortgage purposes and so that the borough in which a property is located rather Home
www.homebuying.co.uk Homebuying The Complete Guide
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