Typical Costs Involved With Buying A New Home In The UK

Buying a home in the UK can be costly, there are no two ways about it. So if you are thinking of buying a new home then you need to budget for these costs. Let's have a look at some of the costs involved with buying a new home in the UK. This is an ad.


new home

When you buy a property, if you are needing a mortgage (a loan to buy your home) you will need to put a deposit down on the house. This could be anything from 5% to 20% or more. As you can see that's a large amount of money and it's a good idea to set up a savings account beforehand, in some cases years in advance to get your deposit ready.

Valuation Fee

The mortgage lender will assess the value of the property to establish how much they are prepared to lend you. Depending on the type of mortgage you may need to pay a valuation fee which is around £250 on average. 

Surveyors Fee

Before you buy a property it is important to get a survey done. This will show up any problems with the property such a
s structural damage. This can help prevent you make a mistake in buying the property but can also be a bargaining tool to get a cheaper price if there are problems. A surveyor's costs will vary depending on the type of property, its size and location and will cost anything from £350 to over £800. 

Stamp Duty

Stamp duty is a tax to the government paid when you buy a property. You pay this to your solicitor and then they pay the government for you. This applies to properties in England and Northern Ireland and is a percentage of the value over £500,000 but over £300,000 if you are a first-time buyer. In Scotland and Wales its a devolved issue so they have their own rules. 

Legal Fees


Legal fees are carried out by a solicitor or conveyancer and are typically from £500. These can be a set fee or a percentage of the property so it's best to check carefully. Local searches are also carried out and will cost another £300-£400. 

Land Registry Fees

The Land Registry keeps records of all properties in England and Wales and charges a fee for registering a new owner. This can depend on property price but it is typically in the region of £100 to £150. 

Mortgage insurance

Ensure you get mortgage protection so that if something serious happens such as death or disability then the mortgage is paid off. This is really important for peace of mind. There are two main types - Level term cover and decreasing term cover. 

Moving Costs

There are some significant costs with moving. You may want to pay for a professional cleaner to clean your old property first. Then there is the cost of hiring a removal service or van hire if you are doing it yourself. You may want to put some of your items in storage so you need to factor in that cost. Mail redirection can be set up with the Royal Mail. Check out my 9 ways to take the stress out of moving for more advice. 

So as you can see buying a new home costs a lot of money so start saving now. 


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