Expat mortgage costings
As an expat the costs you will incur with mortgaging or remortgaging your property are similar to the costs you would incur if you were a UK resident, in simple terms they can be divided into three separate categories.
Lender Fees
You will find that a lender will charge a valuation fee as they will not offer finance without a valuation of the property carried out on their behalf. This is charged at the application stage and is non-refundable once the valuer has completed his inspection. It is also normal for a lender to charge a product fee to secure the fixed rate or tracker scheme you have opted for. Most lenders add this fee to your mortgage advance at completion stage.
Legal Fees
You will require the services of a legal professional to facilitate the purchase or remortgage of your property. You will be charged a specific fee for their services plus you will incur the set costs involved with property conveyancing, these can include stamp duty and fees for the legal searches required by law. If your property is leasehold the fees are normally higher due to the extra work required in validating the terms of the lease.
Broker Fees
As an expat the services of a mortgage broker are invaluable. The advice you will receive and the assistance in selecting a lender and processing the application on your behalf will make the process far easier for you. All brokers charge a fee and by law they must inform you of their charges upfront. It is important to be aware that these costs can vary from broker to broker. Some brokers charge set fees and some charge a percentage, the average cost across the industry is equal to 1% of the amount borrowed, but it can be as high as 3% with some companies.
