During the process of securing a house purchase, your solicitor or conveyancer will be responsible for a number of tasks and responsibilities, including arranging contracts, registering your property on the land registry database and conducting searches. These tasks and responsibilities will be billed to you.
We’ll discuss whether you can put these fees on your mortgage, as well as potential alternatives.
Is it possible to add the cost to your mortgage?
Unfortunately, no. There is a difference between conveyancing fees and mortgage fees, and the latter cannot be absorbed by your mortgage, so you will need to think about how you will cover them. When you begin your mortgage application process, you should keep in mind that you’ll be billed during the course of your house purchase.
Alternative ways to pay your solicitor
Your mortgage broker can advise you on how to proceed, but taking out personal loans or credit cards to pay for your house moving fees can be risky. A short-term loan is not only expensive, it also affects your credit score, which then affects how your lender views your mortgage application.
Although borrowing from family might be safer, proving you have the money in the bank and are ready to pay is far more attractive to solicitors and lenders. Some solicitors or conveyancers will be more accommodating if you have to borrow to cover these fees.
An existing property can be used to raise cash, such as through remortgaging to release equity, a secured loan or a lifetime mortgage, if you’re over 55.
Finally, you may be able to free up some funds for conveyancing by finding a lender who accepts a lower amount of deposit.
Most mortgage providers will require at least 10% of the property’s value as a down payment, but you may be able to take advantage of 5% deposit mortgages instead enough left over to pay your solicitor – just keep in mind that a lower deposit amount means holding less equity in your home, and this in turn can mean being hit with a higher interest rate.