The hidden costs of buying a house include your mortgage valuation fee, a survey, solicitor's fees, Stamp Duty Land Tax (if applicable), land registry fees, buildings insurance, and moving costs. Together these can add several thousand pounds on top of your deposit, so budgeting for them properly before you start viewing houses will save you a nasty surprise later.
Most people fix their minds on two numbers when they start planning to buy: the deposit and the monthly mortgage payment. That is understandable, since those are usually the biggest figures involved. But it is the costs sitting around the edges of the purchase that tend to catch buyers out, often because nobody sits them down and lists them clearly. Below is that list, in plain terms.
The costs that come before you even get a mortgage offer
Mortgage valuation fee
When a lender agrees to offer you a mortgage, they will want their own valuation of the property to make sure it is worth what you are paying for it. Some lenders fold this into a free package, particularly on their more popular products, but others charge for it separately. As an illustrative example, a basic valuation fee might run into a few hundred pounds, though this varies by lender and the value of the property, so always check what is included before you commit to a product.
A proper survey
A lender's valuation is not a survey. It protects the lender's interest in the property, not yours. If you want to know about the actual condition of the building, you need to pay separately for a survey, typically either a HomeBuyer Report or a more detailed Building Survey for older or unusual properties. This is one cost that buyers are sometimes tempted to skip to save money, which is a false economy. A survey that flags a problem with the roof or damp before you exchange contracts can save you a great deal more than it costs.
Broker or arrangement fees
Some mortgage products carry a product or arrangement fee charged by the lender, which can sometimes be added to the loan rather than paid upfront, though doing that means you pay interest on it for the life of the mortgage. Separately, some brokers charge a fee for their advice and service, while others are paid by commission from the lender instead. At The Mortgage Experts we are upfront about how we are paid before you commit to anything, so there are no surprises later.
The costs of the legal process
Solicitor or conveyancer fees
You cannot buy a house without a solicitor or licensed conveyancer to handle the legal side: searches, contracts, and the transfer of ownership. Fees vary depending on the firm, the complexity of the transaction, and the price of the property, and most firms will give you a quote upfront. Be wary of a quote that looks suspiciously low, since some firms add on extras later for searches or disbursements that were not made clear at the start.
Local authority and other searches
As part of the conveyancing process, your solicitor will carry out searches with the local authority and other bodies to check things like planning history, flood risk, and whether the property sits above a mineshaft in some parts of the country. These searches carry their own fees, usually bundled into your solicitor's overall quote.
Land Registry fee
When the property changes hands, the change of ownership has to be registered with HM Land Registry. This fee is set by the Land Registry itself and scales with the price of the property, and your solicitor will normally handle the payment on your behalf as part of completion.
Stamp Duty Land Tax
Depending on the price of the property, whether you are a first-time buyer, and whether you already own another property, you may owe Stamp Duty Land Tax (or Land Transaction Tax in Wales, or Land and Buildings Transaction Tax in Scotland). The rates and thresholds change from time to time, and first-time buyers often benefit from relief, so it is worth checking the current rules for your situation rather than relying on an old figure you heard somewhere. This is frequently the single largest cost on this list, so it deserves proper attention early in your planning rather than a late surprise close to completion.
Costs around moving in
Buildings insurance
Most lenders require you to have buildings insurance in place from the moment you exchange contracts, since the property is effectively yours to insure from that point even though you have not yet completed. Shopping around for a policy before exchange, rather than leaving it to the last minute, usually gets you a better deal.
Removals and moving costs
Van hire, a removals firm, cleaning, and simple things like change of address notifications and new furniture for a different-sized room all add up. None of these costs are enormous individually, but together over the weeks around moving day they can take people by surprise if they have not set money aside.
Ground rent, service charges, and ongoing costs
If you are buying a leasehold property, particularly a flat, you may have ground rent and service charges to budget for, sometimes with significant costs for buildings with lifts, communal gardens, or a concierge. These are not one-off costs but ongoing ones, so factor them into your monthly budget rather than your moving-day budget.
How to avoid being caught out
- Ask for a full breakdown of fees from your broker, solicitor, and lender before you commit to anything, in writing where possible.
- Build in a contingency, since unexpected costs during conveyancing (an additional search, a query that needs following up) are common.
- Get your survey done properly rather than skipping it to save a few hundred pounds.
- Check what is and is not included in any 'free' valuation or legal fee offer attached to a mortgage product, since these often come with conditions.
- Start your budgeting conversation with a broker early, rather than after you have had an offer accepted, so there are no late shocks.
Frequently asked questions
How much should I budget on top of my deposit? It depends heavily on the property price, whether Stamp Duty applies, and the complexity of the legal work, but as a rough illustrative guide many buyers set aside somewhere in the low thousands of pounds for fees and moving costs, separate from their deposit. Ask your broker and solicitor for a specific estimate based on your own purchase.
Can any of these costs be added to my mortgage? Some product or arrangement fees can be added to the loan rather than paid upfront, though this means paying interest on them over the life of the mortgage. Solicitor fees, surveys, and moving costs generally cannot be added to a mortgage and need to be paid separately.
Is it worth paying for a survey if the lender already does a valuation? Yes. A lender's valuation is there to protect the lender, not you, and is often quite basic. A proper survey gives you an independent assessment of the property's condition, which can be the difference between a confident purchase and an expensive mistake.
If you want a clear, honest breakdown of what your specific purchase is likely to cost from start to finish, get in touch with The Mortgage Experts. We would rather talk you through the real numbers now than have you discover them halfway through conveyancing.