How much should you budget for when buying a home?
Your mortgage deposit
Your deposit is likely to be your largest upfront cost.
Many mortgages are available with a deposit of 5% or 10%, although the amount you need will depend on the lender, property and your personal circumstances. Some mortgage options may also be available without a traditional deposit, but these have different and separate eligibility requirements.
A larger deposit can sometimes give you access to a wider choice of mortgages or more competitive rates. However, putting every pound of your savings into your deposit may leave you without enough money for legal fees, moving costs or unexpected repairs.
A mortgage broker can help you compare different deposit options and understand whether increasing your deposit would make a meaningful difference to the mortgages available to you.
For example, we can help you consider whether you would be better using more of your savings as a deposit or keeping some money available for the other costs of moving.
Mortgage fees
Depending on the mortgage you choose, you may need to pay:
- A product or arrangement fee
- A booking fee
- A mortgage account fee
- A valuation fee
Some mortgages have no product fee, while others may charge £1,000, £2,000 or more.
This is one reason why a mortgage with the lowest interest rate is not always the cheapest mortgage overall. For example, a slightly higher rate with a lower fee could cost you less, particularly if you are borrowing a smaller amount or only keeping the mortgage deal for a short period.
It may be possible to add some fees to the mortgage, but you will usually pay interest on them if you do this.
Your Mortgage Expert can compare the rate, fees, monthly payment and overall cost of different mortgage options to help you make a properly informed decision.
Legal and conveyancing costs
You will need a solicitor or licensed conveyancer to complete the legal work involved in buying your home.
Their work usually includes:
- Checking the contracts
- Carrying out property searches
- Dealing with the Land Registry
- Transferring money to the seller
- Arranging payment of any property tax due
Legal costs vary depending on the property and how complicated the purchase is. Leasehold, Shared Ownership and other specialist purchases may involve additional work and charges.
Ask for a full quotation that includes VAT, searches, Land Registry fees, bank transfer charges and any likely additional costs.
Your solicitor will need to be accepted by your chosen mortgage lender. This is worth checking before you instruct them.
At Your Mortgage Expert, we have close relationships with a range of national and local conveyancers and can assist you with getting a no obligation quotation.
Stamp Duty and property taxes
The property tax you pay depends on where in the UK you are buying, the property price and your circumstances.
In England and Northern Ireland, eligible first time buyers currently pay no Stamp Duty Land Tax on the first £300,000 of a property costing £500,000 or less. They pay 5% on the portion between £300,001 and £500,000.
Different rates apply if you have owned property before, are buying an additional property or are not treated as a UK resident for Stamp Duty purposes.
Wales and Scotland have separate property tax systems.
Stamp Duty rules can change, so check the amount with your solicitor and use the current government calculator before relying on a figure.
Mortgage valuation and property survey
A mortgage valuation and a property survey are not the same thing.
Your lender may arrange a mortgage valuation to check whether the property provides suitable security for the mortgage. This is primarily for the lender’s benefit and may not identify repairs or defects that could cost you money later.
You can arrange your own property survey for a more detailed assessment of the home’s condition.
The appropriate type of survey will depend on the age, construction and condition of the property. An older home, unusual property or building requiring renovation may need a more detailed survey.
Although a survey is another upfront expense, it could reveal problems that affect your decision, allow you to investigate repair costs or give you grounds to renegotiate your offer.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Moving, insurance and initial household costs
You should also allow for the practical costs of moving and setting up your new home.
These could include:
- A removal company or van hire
- Buildings and contents insurance
- Storage costs
- Furniture and appliances
- Cleaning or decorating
- Immediate repairs
- Council Tax and utility bills
- Service charges if you are buying a leasehold property
If you are selling a property at the same time, you may also have estate agent fees and additional legal costs to pay.
Try to retain an emergency fund rather than using every available pound for your purchase. Even a property that appears to be in good condition can bring unexpected costs after you move in.
If you are looking for a buildings and contents insurance quote, our team of brokers would be delighted to help.
How can a mortgage broker help you plan the cost of buying?
The most useful time to speak to a mortgage broker is often before you find a property.
At Your Mortgage Expert, we can help you:
- Understand how much you may be able to borrow
- Estimate your likely monthly mortgage payments
- Work out how much deposit you may need
- Compare mortgage rates, fees and overall costs
- Understand which costs need to be paid upfront
- Identify mortgage options that fit your circumstances
- Prepare an Agreement in Principle before you make an offer
- Avoid applying to a lender whose criteria may not suit you
- Manage your mortgage application through to completion
We will look at your income, commitments, deposit and future monthly budget rather than relying on a general online calculator.
This can give you a clearer idea of what you can comfortably afford and help you search for a property with greater confidence.
How Your Mortgage Expert can help
Find out what buying a home could cost you
You don’t need to wait until you have found a property to ask for mortgage advice.
Tell us about your income, deposit and plans, and we can help you understand what may be possible, what your mortgage payments could look like and which additional costs you should allow for.
We can help first time buyers and home movers throughout the UK by phone or video call, with face to face appointments also available for clients based near Salisbury.
Last reviewed: June 2026
This guide provides general information and does not replace personalised mortgage, legal or tax advice.
