The true cost of buying a home
Most buyers budget for the deposit and are then blindsided by thousands in extra costs at completion. This guide breaks down every upfront cost of buying in the UK, with typical figures and where you can save.
Stamp Duty Land Tax
SDLT is usually the largest cost after the deposit. In England and Northern Ireland it's charged in slices: nothing up to £125,000, then 2%, 5%, 10% and 12% on higher portions. First-time buyers pay nothing up to £300,000 (and 5% to £500,000), while anyone buying an additional property pays a 5% surcharge on every band. Scotland and Wales have their own equivalents (LBTT and LTT).
Conveyancing and searches
A conveyancer or solicitor handles the legal transfer, typically charging £1,000–£2,000 including their fee and disbursements. On top sit local authority and other searches (around £250–£450) and the Land Registry fee, which scales with price. Buying a leasehold property usually costs a little more in legal work.
Surveys
A survey is optional but strongly advised. A Level 1 (condition) report suits new or modern homes (~£400); a Level 2 (HomeBuyer) report is the common choice for standard properties (~£600–£700); and a Level 3 (building/structural) survey is best for older, larger or unusual homes (~£900+). Skipping a survey to save a few hundred pounds can cost thousands in undiscovered defects.
A survey can pay for itself
Lender and valuation fees
Many deals carry a product/arrangement fee (commonly £999–£1,499), which you can pay upfront or add to the loan (paying interest on it for the term). Lenders run their own valuation — often free on residential deals, occasionally chargeable. Factor the product fee into any rate comparison, as a low rate with a big fee can be worse than a slightly higher fee-free rate.
Removals and the rest
Removals run from a few hundred pounds for a small flat to over £1,500 for a larger home with packing. Add the smaller extras: notice on your rental, mail redirection, new furniture and immediate repairs. It's wise to keep a contingency fund after completion rather than spending every last pound on the deposit.
Common mistakes
- Budgeting only for the deposit. Fees can add several thousand pounds. Total the full cash needed before you offer.
- Skipping the survey. A few hundred saved now can mean thousands in undiscovered repairs later.
- Forgetting stamp duty is cash. SDLT is due within 14 days of completion and usually cannot be added to the mortgage.
- Ignoring the additional-property surcharge. If you'll own two homes at completion, the 5% surcharge applies to the whole price.