How much does it cost to buy a home?

How much does it cost to buy a home?

Buying a home is one of the biggest financial investments that most people make in their lifetime. As such, you may be concerned about the potential initial costs beyond the actual bricks and mortar.

Home ownership comes with a range of costs and it’s essential you take the time to understand all the costs involved to ensure you can genuinely afford the financial commitment.

Here we detail the most common key costs you need to consider.

• Deposit

Your deposit will most likely be your biggest up front fee. You’ll need to save up at least 5% of the purchase price but this will depend on the mortgage product and lender you choose. The government also offers schemes for first time buyers that mean you can have a smaller deposit such as the Shared Ownership and the Mortgage Guarantee Scheme.

• Mortgage Fees

What fees you pay depends on the lender and mortgage product that you choose. Your lender may charge you the following fees:

• Mortgage valuation fee – you should expect to pay around £300 for this
• Arrangement fee – some lenders will charge you an arrangement fee which can be added to your loan. The cost of this can either be free or up to around £2,000.

• Legal Fees

When you buy a house, you will need to instruct a solicitor to deal with the legal aspects. They will prepare the contracts, transfer the funds for the purchase and Stamp Duty and iron out any issues that may arise. You should consider putting aside at least £2,000 to pay for this.

• Local searches

Your solicitor will arrange for local searches in order to check there are no issues with the property. This normally costs between £200 and £300.

• Stamp Duty Land Tax

The amount of Stamp Duty you pay depends on the purchase price of your property, where in the country you live and also whether you have purchased a property before. From 1^st April 2025, first time buyers will pay stamp duty on residential properties worth £300,000 or more. It increases by increments, but starts at 5% of the property price.

• Property Survey

It’s a good idea to do a survey before you buy a property. This will uncover whether there are any issues with the property that might impact it’s value or which might cost you money to fix. There are three main types of survey to choose from and these can range from £400 to £1500.

• Removal Costs

It is possible to move without paying removal costs. But this can be stressful and you may choose to use a removal company. If you do, you should expect to pay from £150 to over £2000 depending on how many possessions you have or where in the country you live.

• Estate agents fees

If you’re selling your current home and you use an Estate agent, you’ll need to pay estate agent fees. You can negotiate these costs, but most charge a % fee based on the property price. You should budget to pay between 1% and 3% of your property price for your estate agent.

If you’ve read anything in this guide to how much does it cost to buy a home and have any questions, we would love to help.

We are a five star rated mortgage broker* and we have a huge amount of experience with helping people prepare a budget for purchasing a home.

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How Your Mortgage Expert can help

By speaking to Your Mortgage Expert, you’ll get access to expert advice to help you work out how much you can afford to borrow.

While online mortgage calculators can provide a good guide. We will take the time to fully go through your circumstances. We will let you know what your mortgage repayments would be and what type of mortgage is most suitable for your personal circumstances.

With all clients, we break down all the costs the ensure you understand what your financial commitment will be. And to ensure you will be able to afford all of these within your budget.

Not only do we have access to the current deals on the market, some of which are not available to you directly. Having access to over 90 lenders will ultimately save you time. As you won’t have to search or contact each individual lender to compare the mortgage terms and rates. We will do all that for you. We also have extensive knowledge of all the current Government schemes designed to give you a helping hand.

We don’t charge for the initial consultation, so by speaking to us, you are under no obligation. So why not get in touch for expert first time buyer advice and take that first important step. We are based in Salisbury but can help you no matter where in the UK you live. We can carry out face to face meetings for those based locally. Alternatively, we can carry out the whole process remotely via the telephone, email or video call.

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