In this guide
Mortgage Fees
Your deposit is just one part of the picture. There are several fees involved in setting up a mortgage, and they can add up quickly if you're not prepared.
| Fee | Typical Cost | Notes |
|---|---|---|
| Arrangement fee | £0 – £1,999 | Charged by the lender. Can usually be added to the loan. |
| Booking fee | £0 – £200 | Non-refundable fee to reserve a deal. Not all lenders charge this. |
| Account fee | £0 – £300 | Some lenders charge this at completion. |
Lower rates often come with higher arrangement fees. A deal with no fee but a slightly higher rate can actually cost less overall — always compare the total cost over the deal period, not just the headline rate.
Solicitor & Legal Costs
You'll need a solicitor or conveyancer to handle the legal side of your purchase. They deal with contracts, property searches, transferring ownership, and registering the property with the Land Registry.
| Item | Typical Cost |
|---|---|
| Solicitor / conveyancing fees | £850 – £2,500 (inc. VAT) |
| Disbursements (searches, Land Registry, etc.) | £250 – £650 |
| Leasehold supplement | ~£300 extra |
Disbursements are third-party costs your solicitor pays on your behalf — things like local authority searches, environmental searches, and Land Registry fees.
Conveyancing costs vary significantly between firms. Online conveyancers can be cheaper than high-street solicitors, but always check reviews. The cheapest option isn't always the best — slow conveyancing can cost you a purchase.
Surveys & Valuations
The lender will arrange a basic valuation to check the property is worth what you're paying. But this is for their benefit, not yours. Getting your own survey is strongly recommended.
| Survey Type | Cost | Best For |
|---|---|---|
| Lender valuation | Often free | Confirms the property is adequate security for the loan |
| Level 2 (HomeBuyer) | £400 – £1,000 | Standard properties in reasonable condition |
| Level 3 (Full Structural) | £630 – £1,500+ | Older, unusual, or significantly altered properties |
A survey costs a few hundred pounds but can save thousands by uncovering problems before you commit — or give you leverage to negotiate a lower price.
Stamp Duty
Stamp Duty Land Tax (SDLT) is a tax you pay when buying a property in England or Northern Ireland above a certain price.
Check Your Stamp Duty
First-time buyers pay no stamp duty on properties up to £300,000.
Costs People Forget About
Beyond the big fees, there are several smaller costs that can catch you off guard:
| Cost | Typical Amount |
|---|---|
| Local authority searches | £250 – £450 |
| Land Registry fee | £200 – £300 |
| Bank transfer fees (CHAPS) | £25 – £50 each |
| Buildings insurance | From £150/year |
| Removal costs | £300 – £1,500+ |
You'll need buildings insurance in place from the point of exchange — not completion. If you don't arrange it in time, you could be uninsured for a period where you're legally committed to buying the property.
How Much Should You Budget?
Here's a realistic breakdown for a typical UK purchase around £290,000:
Additional Costs on a £290,000 Purchase
First-time buyers pay no stamp duty on properties up to £300,000. Standard buyers should add stamp duty on top of the above figures.
Set aside at least £1,000 – £2,000 on top of everything for unexpected costs that pop up during the process or immediately after moving in.
How to Keep Costs Down
There are several ways to reduce what you pay:
- Use a fee-free mortgage broker. They access the same deals as fee-charging brokers but don't charge you directly.
- Choose a fee-free mortgage deal if your savings are tight — accepting a marginally higher rate in exchange for no upfront product fee.
- Compare total cost, not just rate. A lower rate with a £1,500 fee can cost more than a slightly higher rate with no fee.
- Pick a lender that offers free valuation. Many deals include this as standard, saving you £250–£400.
- Get multiple conveyancing quotes. Costs vary wildly between firms.
- Maximise your deposit. Crossing key LTV thresholds (90%, 85%, 80%) unlocks noticeably better rates.
