The costs of buying a home in the UK

The cost of buying a house goes beyond saving a deposit. Legal work, surveys, mortgage charges and moving expenses also need cash, while property tax depends on where and how you buy. Planning these costs together helps you avoid using all your savings before collecting the keys.

Understand the main buying costs

How much money will you need?

Split your savings into three parts: deposit, house purchase costs and a buffer. Then check when each payment falls due, as some arrive well before completion.

These figures are planning estimates, not quotes. Your costs will depend on the property, the services you choose and your circumstances. Check what each quote includes before adding costs together.

Your deposit towards the purchase

On a £250,000 home, a 10% deposit is £25,000, leaving £225,000 to borrow before financed fees. A larger deposit lowers your loan-to-value and may widen mortgage choices, subject to lender checks. However, keep enough savings for fees and a buffer. Use our loan-to-value calculator to check how much of the purchase price you would borrow. Then speak to Muttuo about a deposit that fits your budget.

In England and Wales, the deposit paid at exchange forms part of this purchase funding. It is not a second charge; agree the contractual amount with your conveyancer.

Mortgage lender and adviser fees

A mortgage arrangement fee, also called a product fee, is one of the mortgage fees a lender may charge. Booking and valuation fees may also apply, while adviser fees are separate.

However, some deals have no product fee or include a free valuation. Adding an eligible fee to your loan saves cash upfront, but you pay interest until you repay it.

Muttuo can help you compare mortgage options, considering rates and fees over the deal period. A lower interest rate does not always mean a cheaper deal once you include the fees.

Solicitor fees and property searches

Conveyancing is the legal work needed to transfer ownership. Your solicitor or conveyancer checks the contract and title, arranges searches and handles purchase funds.

Conveyancing fees are among the main fees when buying a house. Before comparing quotes, check whether they include VAT, searches, property registration and bank transfers.

Local searches may cost around £250–£300 if charged separately, so avoid adding them again if your quote already includes them. Leasehold work may cost more.

Surveys and mortgage valuation costs

A lender’s valuation checks the home as security for its loan. By contrast, your survey investigates its condition. Choose the level of inspection to suit its age, condition and construction.

For most Scottish homes marketed for sale, the seller supplies a Home Report with a survey and valuation. Exceptions include certain new homes. Read it before paying for another report, although further specialist checks may still help.

Property taxes across the UK

Additional-property rules and, for SDLT, non-resident surcharges can change the bill. Ask your conveyancer to confirm the amount early. Your conveyancer usually collects the tax money for completion, even if the payment deadline comes later.

Moving costs and overlooked expenses

Removal costs vary depending on how much you need to move and the distance involved. Ask your removal company what its quote includes. Also allow for storage, overlapping rent, essential furniture, appliances and initial repairs.

Moving from a home you own? Also allow for selling fees and any charges for changing your existing mortgage. These are outside the first-time buyer example.

When to arrange buildings insurance

In England and Wales, you normally need buildings insurance from exchange. Ask your conveyancer to confirm the start date and any existing block policy, rather than waiting until moving day.

A worked budget for buying

Illustrative buying budget: an existing £250,000 freehold home in England, bought as the buyers’ only/main home. All buyers qualify for first-time buyer SDLT relief, with no non-resident surcharge. The deposit is 10%, and all fees below come from cash.

Illustrative savings target: £31,700

This includes £29,700 for the deposit and listed purchase costs, plus £2,000 for insurance, setup expenses and a buffer. The mortgage remains £225,000.

These fees and the buffer are assumptions, not quotes or Muttuo’s charges. The £2,000 legal allowance already includes searches and registration. Regular bills and future mortgage payments sit outside the purchase total.

Budgeting for life after completion

After moving, budget for mortgage repayments, utilities and repairs, alongside buildings and contents insurance as appropriate. Include Council Tax, or domestic rates in Northern Ireland, plus any leasehold charges or freehold estate charges.

Use Muttuo’s mortgage calculator to explore repayments, then add your household costs. Also check the lender’s payment schedule: the first payment may differ from the regular amount.

For the wider process, our first-time buyer mortgage guide explains the steps from preparing your finances to completion.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Common questions about buying costs