When people budget for a home, they naturally focus on the deposit. But the full cost of buying a house includes a range of fees and charges that can add up to several thousand pounds. Knowing about these in advance means no unwelcome surprises, and lets you set aside the right amount before you start. This guide breaks down the main costs, with an illustrative example to show how they add up.
The main costs of buying a home
Beyond your deposit, budget for the following.
Stamp duty land tax
Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland. The amount depends on the price of the property and your circumstances. First-time buyers often benefit from relief that reduces or removes the bill on lower-priced homes, while home movers and additional-property buyers pay more.
Stamp duty thresholds and rates change over time, and equivalent taxes apply in Scotland (Land and Buildings Transaction Tax) and Wales (Land Transaction Tax). The figures here are for illustration only and are correct at the time of writing — always confirm the current rates before you budget. We cover this in detail in our guide to whether first-time buyers pay stamp duty.
Conveyancing and legal fees
You will need a solicitor or licensed conveyancer to handle the legal transfer of ownership. Their fees typically range from around £800 to £1,800, plus disbursements — costs they pay on your behalf, such as:
- Local authority searches (often £250 to £450)
- Land Registry fees
- Bank transfer fees
- Anti-money-laundering checks
Survey costs
A survey checks the condition of the property and can save you from expensive surprises:
- A HomeBuyer Report typically costs £400 to £900
- A full building survey typically costs £600 to £1,500 or more, depending on the property
Skipping a survey to save money can be a false economy if it means missing a serious defect.
Valuation fee
Your lender will carry out a valuation to confirm the property is worth the loan. Some lenders include this free, while others charge a fee, often £150 to £400 depending on the property value. Note that a lender's valuation is not the same as a survey — it protects the lender, not you.
Mortgage and broker fees
There may be fees associated with the mortgage itself:
- Arrangement or product fees charged by the lender, which can sometimes be added to the loan (though this means paying interest on them)
- A broker or advice fee, if you use an adviser
At Wisely, we are transparent about our fees from the outset. For your mortgage, we are not a fee-free broker — you pay a clear, capped fee for genuine, whole-of-market advice — while our protection advice is free. We believe that clarity is part of the service.
Removals and moving costs
Moving your belongings can cost anywhere from a couple of hundred pounds for a small flat to £1,000 or more for a larger home with a professional firm. Add in cleaning, redirecting post and any immediate essentials.
Insurance
Buildings insurance is usually a condition of your mortgage and must be in place from exchange of contracts. Contents insurance is optional but sensible. It is also worth considering protection such as life insurance and income protection, so your home and family are secure if your circumstances change.
An illustrative cost breakdown
Here is a rough example for a first-time buyer purchasing a £250,000 home. These are illustrative figures only, and your actual costs will vary.
- Deposit (10%): £25,000
- Stamp duty: £0 (assuming first-time buyer relief applies — confirm current rules)
- Conveyancing and disbursements: £1,400
- HomeBuyer survey: £600
- Valuation fee: £200
- Mortgage arrangement fee: £999
- Removals: £600
- Buildings insurance (first year): £250
In this example, the costs on top of the deposit come to roughly £4,000 to £4,500. On a home where stamp duty is payable, the total could be considerably higher.
Budgeting tips
- Add a contingency. Set aside an extra 5% to 10% on top of your expected costs for the unexpected.
- Keep some savings back. Try not to spend every penny on the deposit; you will want a buffer for moving-in costs and emergencies.
- Ask for fees in writing. Solicitors and lenders should give you a clear breakdown, so you can compare like for like.
- Factor in ongoing costs. Beyond the purchase, budget for council tax, utilities, maintenance and your monthly mortgage payments.
How Wisely can help
Understanding the full cost of buying a house helps you plan with confidence and avoid nasty surprises. As an independent, whole-of-market adviser, Wisely can help you weigh up mortgage options, including how product fees affect the overall cost, and arrange the protection that keeps your new home secure.
Big decisions, made wisely. To plan your purchase with no obligation, book a free call on 023 8268 1111.
This guide is general information, not personal financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
Frequently asked questions
How much does it cost to buy a house on top of the deposit?
For a typical first-time purchase, the additional costs often come to a few thousand pounds, covering legal fees, surveys, valuation and moving. Where stamp duty applies, the total can be significantly higher, so budget carefully for your specific circumstances.
Do I have to pay for a survey?
A survey is not compulsory, but it is strongly advised because it can reveal defects that affect the value or safety of the property. The cost is modest compared with the expense of an undiscovered problem after you move in.
Is a lender's valuation the same as a survey?
No. A valuation confirms the property is worth the loan and protects the lender, not you. A separate survey assesses the condition of the property in your interest, so the two serve different purposes.
Can I add mortgage fees to the loan?
Many lenders let you add arrangement fees to the mortgage, but you then pay interest on them over the term. It can ease upfront costs, though it may cost more overall, so weigh it up with your adviser.