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Buying a Home – The Overlooked Costs

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Buying a home, is not just one of the most stressful things you can do but also one of the most expensive, especially if you don’t take into account all of the less obvious costs which are involved. Here are some of the most commonly overlooked costs that can quickly make your home purchase spiral out of control.

Mortgage Fees

When you are comparing the mortgages available on the market don’t forget to take into consideration the fees that are charged to take out the mortgage! These can be anywhere from a few hundred pounds to over £1000, you will have the opportunity to pay these upfront or add it to your borrowing in some cases but it’s definitely not one of those welcome surprises to have if you weren’t aware. As a result make sure when you compare the interest rates of the mortgage you also consider any additional fees you may be charged on top! In addition the mortgage fees if you use a mortgage broker to ensure you get the cheapest mortgage on the market some may charge a fee for their services. The easiest way around this is to use a fee free mortgage advisor offering free mortgage advice, such as First Mortgage at

Stamp Duty

In the UK if you purchase a property you are charged a lump sum in tax depending on the value of the property, the higher the value of the property the higher the rate of tax you will be charged. Properties under £125,000 are not charged tax however, if you purchase a property at £125,001 you will be charged 1% of the total amount, rather than 1% of the amount over £125,000.  When you’re looking for a property to buy you should always take into account the additional costs stamp duty is going to cause. More information regarding stamp duty tiers are available here.


Once you have made an offer on a property and it has been accepted you then need to get a survey completed, this is a requirement in order to get a mortgage as the property value is taken into account against the value of your loan and deposit. It is easy to overlook this cost as it is small in comparison to the likes of stamp duty costing between £250 and £500 depending on where you are in the country however this is one of those costs that adds up once put together with the other home buying costs.

Land Registry Fees

If you are purchasing a property in England and Wales it will be listed on the Land Registry with the registered owners, this will need to be updated and you will be charged a small fee in order to do so. This starts at £40 for properties under £40,000 and goes up to £800 for properties priced over £1,000,001.

Legal Fees

Conveyancing can be complicated so although it might be possible to do the work yourself chances are you may be better off with a solicitor and specialist legal advice. This typically starts at around £600.

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