You spotted your dream property. You worked out your budget and mortgage payments. But did you factor in all the buying costs along the way?
It’s easy to forget, for example, the survey fees or the buildings insurance. Before you know it, your total expenses have outgrown your original figure.
Let’s go over the various buying costs, so you can feel confident you’ve accounted for everything.
Legal fees and tax
Stamp Duty Land Tax (SDLT)
You pay this tax when buying a home above a certain price. The amount depends on the property price, your status as a buyer (first-time buyer, additional property, etc.), and whether the property is for residential or commercial use.
For 2026, the standard rates are:
- Up to £125,000 – 0%
- The next £125,000 – 2%
- The next £675,000 – 5%
- The next £575,000 – 10%
- Anything above £1.5 million – 12%
As stamp duty is a major cost in the home-buying process, look at how it applies to your specific situation. Here’s more info on the government website.
Conveyancing fees
Conveyancing is the legal process[1] of transferring property ownership from a seller to a buyer. When your offer is accepted, you’ll need to hire a solicitor or conveyancer to handle the legal work. The cost depends on the complexity of the transaction, but typically ranges from £800 to £2,000 including VAT and local search fees.
Land Registry fees
There’s a charge to register your ownership name legally with the government. Take a look at this gov.uk page to see what you could owe.
Mortgage and survey costs
Mortgage arrangement fees
These can range from £999 to £2,000 and be added to your loan or paid upfront. They often cover admin costs for processing your application and arranging the mortgage. Some lenders offer fee-free mortgages, so look around for the most competitive deal.
Surveys
Although surveys aren’t essential, they can be enormously useful when evaluating a property’s condition. A standard mortgage valuation may cost around £150–£300, but a more detailed survey – such as a Homebuyer’s Report or a full building survey – can cost anywhere between £400 and £1,500, depending on the size of the property and its location.
A survey will help identify potential structural problems, damp and other issues that could require costly repairs. So while it may seem like an unnecessary expense, it could save you money in the long run.
Insurance
Lenders require you to take out buildings insurance before you can complete the purchase. This covers the cost of repairing damage caused by events such as fires, storms or flooding. The cost depends on the size, location and condition of the home, but typically ranges from £100 to £300 per year. If you have a mortgage, you'll also need to consider life insurance to make sure your mortgage is paid off in the event of your death. The cost of life insurance varies based on factors such as your age, health and the amount of cover required.
Moving and settling in
It’s easy to overlook the costs associated with moving your belongings and setting up your new home. These can include the following:
- Removal companies: Hiring professional movers or renting a van typically costs between £300 and £1,500 depending on the distance and number of boxes.
- Immediate essentials: Redirecting the post, setting up the internet, buying new appliances, cutting keys, etc.
- Decoration and new furniture: Especially if you’re moving into a larger property, you might want to buy furniture, plus paint rooms and make the place how you like it.
Final thoughts
In the swirl of activity that is buying a home, make sure you consider the various costs involved. Having a good idea of your total expenses will help you feel calm and look forward to moving day.
