Business Q&A

Question:
My fellas cousin is selling her house. If we buy it without them advertising what fees will we need to pay etc and about how much? the house will be about ￡115000. Is it advisable to get a 100% mortgage cos we dont have savings and are 1st time buyers.

Answer:
Providing the house hasn't been advertised in an estate agent, then there are no estate agents fees to pay. Even if it were, then you wouldn't be paying any - its something which the seller pays.

Because the house is only ￡115,000 then there will be no stamp duty (land tax) to pay on the property.

As first time buyers, you will incur the following costs:

1. Mortgage application fee - anything from zero to a thousand pounds depending on the lender.
2. Homebuyers report/survey - you want a homebuyers report which is a more detailed survey, costing around ￡500.
3. Solicitor fees - budget around ￡800-1000 which will include solicitor fees and disbursements (searches).
4. Removals, van hire etc.

If you haven't got savings, then you'll need a 100% mortgage. If you haven't got any money to cover the costs of moving (which could total ￡2000-3000 when taking into account the above, then you'll need more. Northern Rock will lend up to 125% and other lenders probably lend more than 100%

When exchanging contracts, its normal to put down 10% deposit (which in your case is ￡11500) and as the mortgage isn't advanced until completion, you'd have to find this money yourself. As you're buying your place off your cousin, he might accept little/no deposit at exchange of contracts. If not, then you'll need a bridging loan or a guaranteed deposit bond (which your solicitor will advise you about).

Resource from yahoo answers business question and answer:
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