A new study by David Wilson Homes reveals over half of Britons are unfamiliar with the stamp duty fee – and many more know little or nothing about mortgages.
The study also reveals that:
• 91% of respondents expressed unfamiliarity with higher lending charges, making it the least recognised mortgage fee among homeowners;
• Despite it being a common practice of most banks to charge a CHAPS fee, a surprising 88% of prospective and current UK homeowners were unaware of it, potentially leaving many vulnerable to unexpected costs during the homebuying process;
• A mortgage provider may charge a mortgage account fee, typically between £100 and £300, to set up, maintain and close your mortgage account. This can be added to your mortgage on completion, or you can pay it upfront. 85% of survey respondents were unaware of this fee;
• If you decide to come out of a fixed, discounted, or tracker deal early, you may have to pay an early repayment charge added to the redemption figure provided by your existing mortgage provider. Again, 85% of survey respondents reported being unfamiliar with the costs of these fees;
• Almost 80% of people were unfamiliar with the costs of own building insurance;
• 78% of people were unfamiliar with the costs of conveyancing fees, typically around £800 to £1,500;
• 75% of the survey respondents reported being unfamiliar with any Land Registry cost;
• A mortgage reservation or application fee costs between £100 and £300. However, 73% had no idea how much this fee would set them back;
• The arrangement fee: 67% of individuals lack awareness of these fees;
• The mortgage provider will want a surveyor to assess the property’s value. 63% of people were unfamiliar with this;
• Some brokers are fee-free, and some require a broker fee. Nonetheless, 62% of individuals were unsure about the associated costs;
• 54% of individuals lack awareness of the potential costs of stamp duty.