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Costs and fees- Newbie edition

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Hi guys,


Just a quick question. All the additional costs and fees-Surveyors, Arrangement fees and Solicitors etc- are they paid out of a separate pot to the BTL Mortgage? As in, do you need an additional source of funds as well as the downpayment?


Sorry if it sounds a stupid question.

Kind regards


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Hi Noah,


I am a newbie too but I am currently buying a flat so I have some experience but please double check everything. 


Yes, you would need to pay for all upfront: 

lender valuation fee


mortgage broker

your surveyor( if you need to do a survey)


Dont forget the stamp duty, which will have to be paid further down the process but can't be added to the mortgage. 

 The only fee you could possibly add to the mortgage is the arrangement fee if the lender would allow it.


You could pay for some of these on an 0% credit card, set up a Direct debit to pay it all off over the term of the card! 



Make sure you research your mortgage broker carefully because there will be fewer BTL lenders that will lend to a first time BTL investor. If the broker doesn't know s/he will put your application and the lender will do a hard credit check on you and that will have impact on your credit score and you still won't get the mortgage. This is what happened to me.


Check the broker is whole of the market, has a lot of experience with BTL, ideally an investor himself, I know a few great guys on this forum are! 


Good luck and please keep checking everything in the forum and the rest of The Property Hub website, you will learn everything you need to know!


Best regards 



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