9 Things You Should Know When Buying Property in the UK

Buying property in the UK as an expat or foreign national doesn’t have to be stressful. Just devote some of your time to finding the best international mortgage lenders for your situation. But before you do that, here are 9 essential things you should know.

·       To get a more competitive interest rate, don’t let international mortgage lenders finance 100% of your purchase, if you buy property for the first time in the UK. Even a 5% deposit can help you secure better interest rates.

·       The more proof you can provide of your earnings, the easier it will be for international mortgage brokers to find the best lenders for you.

·       As a first time buyer, you’ll usually need to pay up to 10% of the total purchase price from your own pocket, before the international mortgage lenders will lend you the rest of the money to buy the property.

·       For property purchases in the UK exceeding £175,000, you will have to pay 1-4% of the property value as Stamp Duty Land Tax. This tax applies to almost all property purchases in good areas.

·       International mortgage lenders may oblige you to take mortgage protection cover before lending you the money. This cover comes as monthly payments and ensures that the lender gets its money back if you happen to die before paying off the mortgage.

·       Expect to pay from your own pocket the surveyor’s fee, which covers the property valuation survey done by the lender. This fee starts at a few hundred pounds and increases with the property value.

·       You’ll have to pay yourself the solicitor’s fees, which cover legal paperwork. These fees depend on the area where you buy property. Ask your international mortgage broker for more information on them.

·       Arrangement fees requested by the mortgage lender can often be included into the loan. Ask your lender if that is the case,

·       Researching international mortgage brokers before buying any property in the UK usually means better financing conditions.