Buying a home involves more than just the deposit and mortgage repayments. Understanding all fees and costs helps first-time buyers plan effectively and avoid surprises.
1. Deposit
- Typically 5%–20% of the property price.
- Larger deposits can improve mortgage offers and reduce interest rates.
2. Mortgage Fees
- Arrangement or booking fees charged by lenders.
- Valuation fees for the lender to assess the property.
- Some fees are added to the mortgage; others are paid upfront.
3. Legal Fees (Solicitor or Conveyancer)
- Covering searches, contracts, and transfer of ownership.
- Costs vary but typically range from £500 to £1,500.
4. Survey Costs
- Homebuyer survey: £400–£700
- Building/structural survey: £600–£1,500
- Ensures property condition is assessed before purchase.
5. Stamp Duty Land Tax (SDLT)
- Payable in England and Northern Ireland on properties above certain thresholds.
- First-time buyers may be eligible for relief up to £425,000.
- Rates vary depending on purchase price and property type.
6. Additional Costs
- Removal costs: £300–£1,500 depending on size and distance.
- Mortgage broker fees if used.
- Home insurance (buildings and contents).
- Ongoing utilities and council tax.
7. Optional Costs
- Decorating or refurbishment costs.
- Furniture and fittings.
- Garden or exterior work.
8. Budgeting Tips
- Keep a contingency fund for unexpected costs.
- Factor in ongoing monthly costs, not just upfront fees.
- Compare solicitors and surveyors to get competitive prices.
- Consider using calculators for SDLT and mortgage costs.
This guide complements other pages including Deposit & Saving Guide, Mortgage Affordability Guide, and How Much Can I Borrow?.
