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Things to watch out for

there are no. of important things to watch out for buying or comparing a mortgage .Here's the guide to these :

Head line-grabbing interests rates

If it is too good to be true then it is possible . Remember, mortgage lenders want to make money, so won't give some away for nothing . Watch out for hidden catches and other strings attached.

Don't just look at the interest rates . Look at all of the associated fees too . This will help you work out the tree cost of the mortgage . There are a whole range of fees which you may have to pay, for different things :

House buying process fees

Legal/conveyance fees

conveyance is the legal process for transferring the title tp property . You'll probably need to pay a solicitor or conveyancer for this, although you can do it yourself if you know what you are doing. If you are buying and selling a house, you have to pay for both the deals . The solicitor usually also deals with any stamp duty that which is payable .

survey fees

You should always consider whether to have your own survey done, which will highlight any short comings in the new property, like damp or dry-rot in the roof . The price of the survey could save you a fortune on unforeseen repairs in the future .

The sellers of the property in the England or wales must provide a Home infomation pack . this may contain a home condition report, which is effectively a survey report . This may save you time and money as a buyer .

Broker's fees

If you are arranging a mortgage through a broker , they may also charge you a fee for their service either before or after the mortgage application has been completed . All brokers are required by law to show you how much commission they earn from the lender in a key facts document , so make sure you get this up front . The mortgage business is extremely competitive, so get some quotes from a variety of brokers before you sign on the dotted line .

Up front lender's fee

Valuation fees

A lender has to be sure that their mortgage offer is based on a sound property . For this they require a valuation of the property, which will be usually be paid for by you . The cost depends on what type of valuation they do, which can vary from a simple drive-past to a full survey .

Arrangement fees

Most mortgage lenders charge an arrangement fees ( also called as application fee or completion fee ) when you take out a mortgage . Some mortgage lenders will let you add the cost of this to the mortgage . The fees depends on the mortgage lenger and mortgage offer .

Booking fees

Usually with a fixed rate mortage there will be a fee for the lender "booking" the funds they use to lend you . This is usually non-refundable if you withdraw your application .

Higher lending charges

This is an insurance permium that protects the lender if you are unable to pay back the mortgage . Charges range between 7 and 12% over and above the mortgage threshold (this is tipically anything above 75% of the total mortgage amount ) . You can filter these out in the mortgage best buys . If you can avoid them then do . That's because if you fail to keep up with your mortgage payments and your home is repossessed, you'll still be liable to pay any shortfall once it is sold .

Other fees

Early repayment fees

If you have a fixed rate mortgage or discounted rate mortgage, you may have to pay an early repayment ( or redemption penalty ) if you pay back your mortgage early or switch lenders before your deal has expired . You can filter out this in the mortgage best buys .

Extended tie-ins

Extended ( or overhanging ) tie-ins are early repayment fees that apply even after your deal period ends . They may force you to stay with the lender for a longer period of time than you want to , and should be avoided if possible .