What Costs Are Involved in Buying a Home Beyond the Purchase Price?
Buyers regularly discover significant additional costs at various stages of the purchase process, and being unprepared for them can derail otherwise well-planned transactions.
⚡ Quick Answer
Allow for property tax, conveyancing, surveys, mortgage fees, insurance and moving costs as well as your deposit. The amounts depend on the property, lender and services you choose, so obtain itemised quotes. SDLT applies in England and Northern Ireland; Scotland uses LBTT and Wales uses LTT. Confirm with your conveyancer when insurance must start.
The deposit is the headline number — but it’s not all the upfront cash you need. Buyers regularly discover significant additional costs at various stages of the purchase process, and being unprepared for them can derail otherwise well-planned transactions. Here is every cost you’re likely to encounter, explained properly.
1. Stamp Duty Land Tax (SDLT)
In England and Northern Ireland, eligible first-time buyers pay no SDLT on the first £300,000 and 5% on the portion up to £500,000. All joint buyers must qualify and the home must be intended as a main residence. No first-time buyer relief applies above £500,000. Standard residential bands start with 0% up to £125,000, then 2% up to £250,000 and 5% up to £925,000, with higher bands above that. Additional-property purchases usually attract an extra 5 percentage points, subject to exceptions; non-resident surcharges may also apply.
Assuming eligibility and no surcharges, a £280,000 first-time purchase incurs £0 SDLT, a £380,000 first-time purchase £4,000, and a £350,000 standard purchase £7,500. Check HMRC’s current rates. Scotland and Wales have separate property taxes and relief rules.
Our dedicated Stamp Duty guide has the full rate tables and worked examples.
2. Conveyancing/Solicitor Fees
Your solicitor handles the legal work: title searches, contract review, liaising with lender and seller’s solicitor, fund transfers, SDLT return, Land Registry registration. Costs:
- Standard freehold purchase: £1,200-£2,000 plus disbursements
- Leasehold purchase: £1,500-£2,500 plus disbursements
- Disbursements (searches, Land Registry, bank transfer fees): typically £400-£800 additional
Total conveyancing: typically £1,600-£2,800 for a standard freehold purchase. Always get written quotes from at least three solicitors.
3. Survey
The mortgage lender’s valuation protects the lender — it doesn’t protect you. A separate survey is strongly recommended:
- Homebuyer Report (RICS Level 2): £400-£800. Checks accessible parts of the property; flags concerns. Appropriate for most standard modern properties.
- Building Survey (RICS Level 3 / Full Structural): £800-£1,500. More detailed; recommended for older properties, unusual construction, or visible concerns.
Many buyers skip the survey to save money and later regret it. A £600 survey that identifies a £20,000 problem before exchange is excellent value.
4. Mortgage Costs
Mortgage arrangement fee: £0-£1,099 depending on the product. Lower-rate deals often carry fees; higher-rate deals are often fee-free. Calculate total cost (rate + fee) over the fixed period to compare properly — a fee-paying deal isn’t always cheaper overall.
Broker fee: £0-£500 for fee-charging brokers; many whole-of-market brokers are fee-free.
5. Buildings Insurance
Required by your mortgage lender from exchange of contracts (when the transaction becomes legally binding). Annual cost typically £150-£500 depending on property size, location, and rebuild value. Don’t confuse with contents insurance (your possessions) — both are worth having but cover different things.
6. Removal Costs and Post-Move Expenses
Removal company (for a typical household): £500-£2,000 depending on distance and volume. New locks and security: £200-£400. Immediate redecoration: variable. Appliances if not included: variable. Budget a realistic contingency for initial post-purchase costs.
Frequently Asked Questions
Can I add any buying costs to my mortgage?
Mortgage arrangement fees can sometimes be added to the loan (accruing interest over the mortgage term). SDLT and legal fees generally cannot be added to the mortgage — they must be paid in cash at completion.
When exactly are these costs due?
Solicitor fees: part on instruction, remainder at completion. SDLT: due within 14 days of completion. Insurance: must be in place from exchange. Survey: due when commissioned (before offer acceptance in some cases, or after in others).
For an independent, comprehensive overview, MoneyHelper’s buying a home costs guide is thorough and unbiased.
