Mortgages

Chances are you’ll have a lot to think about if you’re considering a new mortgage, especially if you’re moving home. We want your move to go through as smoothly as possible – and with no nasty surprises – so here’s a brief guide to the home moving process, including details on some expenses (some of which may also apply to remortgage transactions) which it’s all too easy to overlook amidst the excitement and activity of moving!

A simple guide to the whole process

Your Sale (if applicable)

• Choose an estate agent and put your home on the market
• Put time aside for prospective buyers to view
• Consider offers
• Accept offer

Your Purchase

• Contact Leeds Building Society or apply online to agree your mortgage in principle
• Find the right house!
• Make an offer
• Contact us again to finalise your mortgage application
• We’ll arrange for your prospective new home to be valued
• Appoint a legal representative
• Arrange a survey if required
• We issue you with a mortgage offer - normally within 10 days of your application
• Exchange contracts, pay deposit
• Complete purchase and sale on the agreed date
• Congratulations – it’s time to move! We'll continue to give you all the help and support you need.

Some expenses to bear in mind

Stamp Duty

If you’re buying a property for more than £170,000 you’ll have to pay stamp duty - this is a form of taxation. The rates are as follows:

Purchase Price - Stamp Duty
Up to £175,000* - 0%
£175,000-£250,000 - 1%
£250,000-£500,000 - 3%
Over £500,000 - 4%

*The £175,000 threshold shown above applies from 3 September 2008 until 2 September 2009 inclusive (unless the lease is for less than 21 years).

Stamp duty may also be payable if a property is transferred from a joint name to a single name or vice versa. If you think this may apply ask your legal representative for further details.

More information on stamp duty can be found at the HM Revenue and Customs website www.hmrc.gov.uk

Higher Lending Charge

If you’re borrowing an amount greater than 75% of the value of the property, the Society may make a Higher Lending Charge depending upon the product. The Charge will normally be deducted from the amount of your mortgage advance before completion. Your Mortgage Advisor will let you know if this applies and if so, how much this will be.

The Charge may be used to insure the Society if the worst happens and your property is repossessed and subsequently sold for less than the amount you owe us. You will remain liable to pay the full amount owing, including arrears interest and legal fees. If our insurers pay a claim, generally speaking they will have the right to recover the amount from you.

Estate Agents

Estate agents services are always free to the buyer, so you’ll only have to budget for their fees if you’re selling your existing home. Fees are usually based on a percentage of the sale price, though they may sometimes be a fixed amount.

Solicitors / Licensed Conveyancer

It’s often worth getting a few quotes from different firms before appointing a legal representative. It will be more cost effective to select a legal representative who has been approved to carry out work on behalf of the Society. Your Mortgage Advisor will confirm which solicitors / licensed conveyancer in your area are able to do this. For remortgages the Society is able to offer a competitive ‘in-house’ service and this may be free with some types of mortgage.

Surveys

We always recommend that you have your prospective new home surveyed independently. Several different levels of report are available, at different rates. The Society may be able to arrange this for you at a competitive rate. Any survey you have carried out will be in addition to the valuation undertaken on behalf of the society for which there will be charge.

Removals

Charges vary considerably – you might like to ask at least three removal companies to come to your home to assess what will be involved and give you a quote well in advance.