The deposit gets most of the attention when you're buying a home, but it's far from the only thing you'll be paying. Between mortgage fees, legal work, surveys, tax and moving costs, there's quite a bit to budget for.
However, your deposit is still normally the highest single cost. MoneyHelper says you'll usually need at least 5% of the property value, and our guide explains how much deposit you need for a mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We'll cover the main costs in the order you're likely to pay them, then look at how they add up on a £300,000 home.
This article is for general information only and isn't personal financial advice.
The cost of buying a house depends on the property's price, where you're buying, your deposit and the mortgage deal you choose. Beyond the deposit itself, the main costs involved in buying a house are listed below:
Legal and conveyancing fees alone tend to come to about £2,000 including VAT, according to MoneyHelper. The figures broadly apply across the UK, but property tax and the legal process itself work differently in Scotland and Wales.
And the bills don't stop once you've moved in, either. Think council tax, utilities, buildings insurance and, for leasehold properties, service charges and ground rent.
For a fuller picture of the buying journey, see our complete guide to buying your first home.
You won't have to pay everything at once. The costs usually come up at five different stages: when you apply for your mortgage, after your offer is accepted, when you exchange contracts, on completion day and after you move in.
These costs are illustrative estimates, not guaranteed quotes. The amount you actually pay will depend on the property, your circumstances and the providers you choose.
This timeline covers England, Wales and Northern Ireland. Our guide to how long it takes to buy a house walks you through the buying process in more detail. Scotland works differently, so we've also got a separate guide to buying a house in Scotland.
You can also check MoneyHelper's timeline when buying a property and the Citizens guide to buying a home.
Getting a mortgage in principle doesn't usually commit you to any fees, and checking your credit report is free. The early paperwork is the cheap part, but lender fees tend to kick in once you make a full application.
Depending on your lender, you might pay a booking fee, an arrangement or product fee, a valuation fee or a mortgage account fee. Our guide to mortgage fees explains how they work. Watch out if an arrangement fee is added to the loan rather than paid upfront, because you'll pay interest on it over the term of your mortgage.
You can get a mortgage in principle to see what you could borrow before you start house hunting in earnest.
Once your offer is accepted, things start moving, and so does your money. You'll need to appoint a solicitor or conveyancer and arrange a survey. Your lender will also arrange a valuation of the property. Some of these costs have to be paid upfront.
You'll generally pay your solicitor's fees before or on completion. Our guide to when solicitor fees are paid explains what to expect. Local searches, which your solicitor orders on your behalf, cost £250 to £300. See our guide on property searches when buying a house.
Expect to fork out about £400 for a Level 2 home survey. Our guide to home survey types and costs explains the different options in more detail.
Go in with your eyes open here. Money spent on your survey and searches may not be refundable if the purchase falls through before exchange.
In Scotland, sellers generally need to make a Home Report available to prospective buyers, usually before marketing the property. It includes a survey, an energy report and a property questionnaire. There are some exemptions, so check what's required for the property you're buying. You can read more in our guide to the Home Report in Scotland..
Exchange is where the big money starts to move. You usually pay an exchange deposit at this point, often 10% of the purchase price, although a different amount may be agreed. This forms part of your overall purchase deposit, rather than being an extra cost on top. If you're buying with a smaller deposit, speak to your solicitor about how much you'll need to pay at exchange.
In England and Wales, buyers often become responsible for insuring the property from exchange of contracts, although this depends on the contract and circumstances. Check with your solicitor when your buildings insurance needs to start. Your mortgage lender will usually require buildings insurance as a condition of the loan.
Exchange makes the purchase legally binding, so pulling out after this point can mean losing your exchange deposit. On a £300,000 home, you could lose £30,000 if you've paid a 10% exchange deposit.
If your solicitor recommends indemnity insurance, expect to pay £20 to £300.
Scotland has no exchange of contracts. Instead, buyers and sellers swap formal letters known as missives.
Completion day is when the keys finally change hands, but the money has to move first. Your solicitor sends the purchase money to the seller's solicitor, made up of your mortgage funds and the rest of your deposit. You'll also settle the solicitor's remaining bill, the electronic transfer fee and any mortgage account fee.
The electronic transfer fee is typically £25 to £50. Mortgage account fees vary by lender. You can read about this in our guide to mortgage fees.
Your solicitor will give you a completion statement showing what you owe. They'll also tell you when to send the money so it's cleared in time.
Our guide to what happens on completion day explains the process in more detail.
Getting the keys doesn't mean you're done paying. You'll still have property tax to pay after completion.
Your solicitor will normally file the return and pay it using money you've sent in advance. Land Registry fees, council tax and utility bills follow once you own the home.
The deadline depends on the nation. SDLT is due within 14 days of completion in England and Northern Ireland, according to GOV.UK's guidance on Stamp Duty Land Tax deadlines.
In Wales, Land Transaction Tax (LTT) returns and payments are generally due within 30 days beginning with the day after the effective date of the transaction. In Scotland, Land and Buildings Transaction Tax (LBTT) returns and payments are generally due within 30 days beginning with the day after the effective date, which is usually completion.
Land Registry fees in England and Wales range from £20 to £500 for online applications under Scale 1, according to HM Land Registry's fee guidance. New leases, part titles and paper applications cost more. Scotland and Northern Ireland have their own registration fees, set by Registers of Scotland and Land & Property Services respectively.
Council tax can start from the day you own the property, even if you haven't moved in yet. Let your council know your completion date, and sort out gas, electricity, water and broadband before moving day.
Then there's the move itself. Removal costs can range from £400 to over £1,000, depending on the distance and how much you're moving. A local move with a two-person crew and a van costs about £400 to £500, while packing help adds roughly £50 an hour.
If you need somewhere to store your belongings between properties, self-storage costs around £22 a week for 50 sq ft. Mail redirection starts from £36 for up to 12 months. When comparing removal quotes, look for firms that belong to the British Association of Removers.
Moving house costs don't end with the van, so set aside money for furniture, appliances and cleaning too. How much you'll spend depends on what you're bringing with you and what the new place needs.
If you're selling as well as buying, you'll also need to budget for estate agent fees, typically 1% to 3% of the sale price plus VAT. Read more in our guide on selling and buying a house at the same time.
The tax even changes its name depending on where the home is, with Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales. Each is charged in bands, so you only pay each rate on the portion of the price that falls within that band.
Information is correct at the time of writing and may change. Always check the latest terms and conditions before taking out a product.
Buying a second home costs more in tax. SDLT usually adds 5% on top of standard rates, Scotland adds an 8% Additional Dwelling Supplement, and Wales applies separate higher rates.
For details, see our guide to how much stamp duty is in the UK or try the stamp duty calculator.
The official rates live on GOV.UK's Stamp Duty Land Tax residential rates, Revenue Scotland's LBTT residential rates in Scotland and the Welsh Revenue Authority's Land Transaction Tax rates and bands.
If you're buying your first home in England for £300,000 with a 10% deposit, you won't pay stamp duty. You'll still need roughly £33,200 to £33,900 or more for your deposit and other buying costs, before any mortgage product fees. The £30,000 deposit makes up the lion's share.
These costs are illustrative estimates, not guaranteed quotes. Actual costs will depend on the property, your circumstances and the providers you choose. Mortgage fees and other costs not included in this example may increase the total. The amount you may be able to borrow will depend on your income, spending, credit history, deposit and the lender's affordability checks.
Costs vary depending on the property, where you're buying and the providers you choose.
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The tax bill would look different elsewhere in the UK. On a £300,000 home, a first-time buyer in Scotland would pay £4,000 in LBTT, and one in Wales would pay £4,500 in LTT, as Wales has no first-time buyer relief. If you weren't a first-time buyer in England, you'd pay £5,000 in SDLT.
Mortgage product fees sit on their own line because they vary so much by deal. Some lenders charge none, and others add the fee to the loan itself.
Want to work out the costs for a different property price? MoneyHelper's tool to estimate your buying and moving costs can help.
The trick is knowing what's due when, not just the grand total. A few things can help you stay on top of the costs:
Options available to you will depend on lender criteria, affordability and your personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Find out what you could be eligible for with Habito
You'll need your deposit, which is usually at least 5% of the price, plus money for mortgage fees, your solicitor, a survey, property tax and moving. As a ballpark, our worked example puts it at about £33,200 to £33,900 or more for a £300,000 first-time buyer purchase in England with a 10% deposit, before any mortgage product fees. For your own numbers, estimate your buying and moving costs with MoneyHelper's tool.
You usually pay an exchange deposit at exchange of contracts, often 10% of the price but it can vary, according to the Citizens Advice guide to buying a home. The rest of your deposit goes over with your mortgage funds on completion day. In Scotland, where there's no exchange of contracts, your solicitor can tell you when funds are due in your case.
It depends where you're buying. On a £300,000 first home, you'd pay no property tax in England or Northern Ireland, £4,000 in Scotland and £4,500 in Wales.
In England and Northern Ireland, there's no SDLT up to £300,000, 5% on £300,001 to £500,000 and no relief above £500,000. Scotland's LBTT relief raises the nil rate band to £175,000, saving up to £600, and Wales has no first-time buyer relief at all, with LTT starting above £225,000.
If you want more detail, our guide to stamp duty rules for first-time buyers covers it, or you can try the stamp duty calculator. You can also check the official LBTT residential rates in Scotland and the Welsh Land Transaction Tax guide.
You pay it after completion, not before, as our guide on when you pay stamp duty explains. Your solicitor usually files the return and pays it for you, so they'll ask for the funds before completion day. For SDLT, the clock runs 14 days from completion, and for LTT and LBTT it's 30 days from the day after completion.
Some lenders let you add the arrangement fee to the loan, but you'll pay interest on it over the term of your mortgage. Your solicitor, survey, searches and moving costs are usually paid from your own savings, so check with your lender about what it allows. Our mortgage fees guide also explains when a fee can be added to the loan.
If you're selling too, add estate agent fees of 1% to 3% of the sale price plus VAT, along with legal fees for the sale. Your overall fees can roughly double when you sell and buy at once. If you're moving straight from your old home into your new one, you may only need one removal, and our guide to selling and buying a house at the same time covers what else to plan for.
This article is based on guidance from organisations including MoneyHelper, Citizens Advice, and GOV.UK. Mortgage rules and legal processes can change, so it's worth checking the latest information or speaking to a qualified adviser.
Sources
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