Homes to buy
Costs to consider
Information on some of the costs to consider when buying your first home.
You’ve made the decision to buy your first home. Hurrah! You’re probably pretty keen to get things started and who can blame you? But before you do, it’s time to stop and ask yourself: “am I sure I can afford this?”.
What fees will you pay when buying a house or flat?
There are a handful of upfront fees and payments you'll need budget for before you get started. Take a look below for more information (costs are averages in the UK):
Deposit: £33,000. This is the lump sum of money you pay towards the cost of your new home. It'll normally be at least 5% of the value of the property you're buying.
Stamp duty: £3,500. This is a government tax paid on homes costing more than £125,001.
Valuation fees: £250. Before you can buy your home, it'll need a valuation survey first to make sure it's worth the amount you want to borrow - this is for loan security purposes.
Solicitors fees for buying a house or flat: £1,000. These are fees that will need to be paid to your solicitor to cover the cost of all legal work associated with buying your home.
Mortgage arrangement fees: £2,500. Mortgage arrangement fees refer to the admin costs of setting up the mortgage. It's usually an upfront cost, but can also be added to your mortgage repayments with interest.
Other fees: You'll need to be prepared for a number of other small fees that might pop up along the way. For example, notice of mortgage fees, mortgage approval fees or a mortgage reservation fee.
What costs will I need to budget for when I'm a homeowner?
With a new home comes new responsibilities. As soon as you have those shiny new keys in your hands, you'll need to keep up with a number of ongoing monthly payments. Take a look below to get an idea of the average household monthly running costs:
- Mortgage repayments: £660
- Buildings and contents insurance: £25
- Gas and electricity: £95
- TV, broadband and phone: £50
- Water: £35
- Maintenance and building work: £50
- Council Tax: £120