Wondering how much it costs to buy a house or a flat? There are a number of fees to consider when buying a new property, including the cost of moving home, your deposit and solicitor fees. This guide will help you plan for all of these when you work out your budget.

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Major upfront costs

Make sure you have saved enough to cover all of the upfront costs.

These include:

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Stamp Duty

The cost of Stamp Duty Land Tax (SDLT), is an important consideration when purchasing a property and something that must not be overlooked. The simplest way to find out what you may need to pay is to use a Stamp Duty Calculator. Enter "Stamp Duty Calculator" into your favourite search engine and you will discover multiple options.

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Deposit

This is the amount you put towards the cost of the property when you buying.

On average, you need at least 5% to 20% of the purchase price (for example: £10,000 to £40,000 when buying a £200,000 home). A larger deposit will generally offer you lower payment rates

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Valuation fee

The mortgage lender will assess the value of the property to establish how much they are prepared to lend you. The cost can be £150-£1,500 based on the property’s value.  Some lenders might not charge you for this, depending on the type of mortgage product you select.

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The lender’s valuation is not a full structural survey so it might not identify all the repairs or maintenance that might be needed.

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Surveyor’s fee

Before you buy a property you may wish to have it checked by a surveyor. This is vital so you understand if there are any problems before you buy.

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Surveys range from a basic home condition survey costing around £250 to a full structural survey from £600 or more.

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Paying for a good survey could save you money on repairs in the long run.

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Legal fees

You’ll normally need a solicitor or licensed conveyor to carry out all the legal work when buying and selling your home. Legal fees are typically £1200-£2000 including VAT at 20%.

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They will also do local searches, which will cost you £250-£300, to check whether there are any local plans or problems.

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Electronic transfer fee

Typically this costs £20-£50.

It covers the lenders cost of transferring the mortgage money to your solicitor/conveyancer.

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Removal costs

These are usually around £600, although you could rent a van and do it yourself!

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Mortgage fees

These might include:

• An application fee of typically £99-£300

• An arrangement fee of £0 up to £2,000

• A mortgage valuation fee of £0 up to £500 or more.

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It’s best to pay these fees upfront rather than adding them to your mortgage, otherwise you’ll be paying interest on them for the life of the mortgage.

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Insurance

The lender will require you have buildings insurance to protect your new property against damage from fire, floods, subsidence and anything else.

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It’s also a good idea to have contents insurance for all your possessions, and life insurance to pay off your mortgage should you die before you’ve repaid the entire amount.

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As part of our service, your Mortgage Guru will provide you with quotations from our independent panel of leading insurers.

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Council Tax

The amount you pay is based on where the property is based and its valuation band (apart from in Northern Ireland where rates are set individually).

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Leaseholders’ costs

If you buy a leasehold property, you’ll have to pay ground rent (around £50-£100 a year) and service charges to the person who owns the freehold.

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Service charges and admin fees differ between properties.

This is an important cost of running a property so it’s vital you know more about these charges.

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Mortgage Broker Fee

The Mortgage Gurus charge a broker fee of £295. Of which, £100 is payable upon obtaining your Agreement in Principle (AIP), and the balance when your Mortgage Offer is received from the lender. A full description of how we get paid is detailed in our Combined Initial disclosure Document (CIDD), a copy of which can be downloaded below.

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