How much does it cost to buy a house?

It’s not just the property price you need to think about when buying a home

Buying a home is expensive. But as well as the property purchase price, you can expect to fork out for a whole load of other things including solicitor fees and Stamp Duty. 

So here’s a breakdown of what you’re likely to pay for when buying a home.

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The property

The average cost of a UK property is £271,000 but you’ll pay more or less depending on where you’re buying and the type of home you’re considering. 

Luckily, you don’t need to pay the entire sum upfront. That’s because most people usually borrow a significant part of the selling price using a mortgage – effectively a very big loan! 

The amount you can borrow depends on how much the lender decides you can afford. It’ll take into account things like your household income, your credit score, outgoings and other factors. Typically, you could borrow four to four-and-a-half times your household income for a mortgage, but you may be offered more or less than this.

The rest will be made up by your deposit which is often the trickiest part of buying a home. 

Ideally, you want to save at least 10% of the total property price to put down, although some providers do accept a 5% deposit. There are a few lenders that offer an 100% mortgage but there aren’t many.

So based on the average property price, this means you’d still need to save up at least £13,550 for that 5% deposit or £27,100 if you’re putting down 10%.

The larger the deposit, the better mortgage rate you’ll be able to secure and the lower your monthly repayments. We’ve explained more about this in one of our guides, ‘LTV and the remortgaging tricks that will save you thousands’.

Mortgage charges

Once you’ve got your deposit and you’ve been accepted for the mortgage, you’ll need to pay a number of mortgage fees. 

This could include:

• An arrangement fee or ‘product fee. This is usually upwards of £2,000 and is charged for setting up the mortgage. Sometimes you’ll see a low interest rate in the best buy tables and when you click on the deal there’s a whopping arrangement fee – so be careful. You can pay this fee upfront, or add it to the mortgage, however, it will attract interest. You could get it added to the mortgage and pay it off straight away by ‘overpaying’ if your lender allows. This prevents interest building on that sum and means you don’t lose the money if something goes wrong. Or if the fee is refundable (to ensure you get the money back if the property purchase doesn’t go through) you could pay it upfront.
• Booking fee. These aren’t that common anymore but some lenders charge between £100 and £300 to secure a top deal.
• Valuation fee. This is usually around £300 and needs to be paid upfront. It’s for the lender to check the property is worth how much you say it is. In some cases, this fee is covered by the lender.
• Mortgage broker fee. Some brokers charge customers a fee once they’ve secured you a deal and you’ve completed. It’s usually between £300 and £600 or it could be a percentage of the mortgage amount, typically 0.3-1% of the loan value.

Solicitors fees

Most estate agents and lenders will insist you instruct a solicitor or conveyancer to deal with the legal side of buying a property. This includes conducting searches, reviewing the contracts, raising enquiries and negotiating terms on your behalf.

You’ll need to pay the fees for the service, which can vary depending on the property price and how complicated the purchase is, plus there are usually additional costs for extras like searches and anti-money laundering checks, referred to as ‘disbursements’. 

But to give you a rough idea, the average solicitors’ fee to buy a home is £1,474, according to the HomeOwner’s Alliance, but you could pay as much as £2,000. You may be asked to pay a portion of the solicitors fees upfront, then the rest on completion.

And these are the average costs for disbursements: 

• Anti-money laundering checks to verify your identity and proof of funds: £6 – £20
• Bankruptcy search to check your financial history and ensure you can complete the sale: £6
• Local authority searches to give you information about the local area that could impact your property such as planned building works, environmental issues (like flood risks) and water issues : usually around £250 to £450
• Property fraud check to ensure the seller’s solicitor is legitimate before you send money to them: £10
• Bank transfer fees: around £20 – £30 per transaction
• Land registry fee which is paid by the solicitor to the Land Registry to register the property in your name: depends on the value of your property but could be between £20 and £1,105
• Lifetime ISA fee (if you’re using one) which your solicitor may charge to withdraw your funds from this account on your behalf. This could be around £60 to £75. Whatever you do, don’t withdraw your funds yourself. Your solicitor must do this for you, otherwise the funds you withdraw will be subject to the 25% withdrawal charge.
• Leasehold fee (if you’re buying one) which your solicitor may charge you to deal with the additional legal work related to the lease agreement with the landlord or property management company.

Be mindful, these are just suggestions of average prices and they could be more depending on where you live and the solicitor you use. It may be that you also need additional services too, like a declaration of trust drawn up, that you’ll need to pay more for.

You can compare conveyancer quotes by using a comparison site, for example this one from Really Moving. 

To protect yourself from escalating costs it’s best to choose a conveyancer or solicitor that offers a fixed fee option so you know what you’ll be paying (minus the disbursements). 

And make sure you opt for ‘no sale, no fee’ so you won’t pay unless the sale completes. If you’re choosing a solicitor make sure they’re regulated and if you’re opting for a conveyancer (which are usually cheaper), make sure they’re licensed. 

Property surveys

Now, property surveys are optional – but they’re a good idea. 

A surveyor will visit the property you’re planning to buy and inspect it to help you understand more about its condition and whether you’re getting a fair price. In some cases, they may be able to help you negotiate a reduction if works have been flagged as urgent, or, if extensive issues are found, you might decide not to go through with the purchase after all.

There are three different levels of survey – and the cost reflects the amount of detail they go into. Different surveyors will produce different reports and include different things, so the below is just a rough guide. 

Level one: Condition Survey (£300 – £900)

This is the most basic survey. You’ll get a report that describes the condition of the property, highlights any risks or urgent problems and any potential legal issues. However, you’ll not be offered advice on what to do to resolve the problems. This survey is worth considering if you’re buying a conventional property that’s in good condition.

Level two: HomeBuyers report (£400 – £1,000)

The surveyor will take a look at areas of the house that are reasonably accessible and report back on any problems that are clear to see. This could include patches of damp on the walls, window frames in poor condition or worn out rendering. They may also suggest what work needs to be done to repair any issues as well as ideas about future improvements that might be needed. Again, this is suitable for a conventional home that’s in reasonable condition, but for homebuyers who want more information about the state of the property and what needs to be done.

Level three: Full building survey (£600 – £1,500)

This is the most comprehensive survey, designed to give you a thorough understanding of what you are buying. You’ll get a detailed assessment of the structure and condition of the property, plus advice on repairs and maintenance options. This survey’s suitable for those buying a large, older or run down property, or one that’s unusual or altered or if you’re planning major works.

For a full list of what’s included in each survey, see the Royal Institution of Chartered Surveyors’ website.

It’s worth noting that electrics are not typically covered by any of these surveys. The surveyor may do basic checks, for example see if the lights work when switched on, but as wires are mostly hidden, they’ll not be able to do a thorough check. 

If you’re worried about the electrics, or you just want to be sure they’re safe with no potential problems, you can get an Electrical Installation Condition Report (EICR) which usually costs between £100 and £350, depending on the size of the property.

Stamp Duty

Stamp Duty is a tax you pay when you buy residential property.

The tax is tiered and how much you pay depends on the price of the property. First time buyers get a discount.

To give you an example, if you’re buying your first home and it costs £500,000, the Stamp Duty alone will be £10,000 – so it’s a significant cost you need to consider. In Scotland, the Stamp Duty equivalent is Land and Building Transaction Tax (LBTT) and in Wales they have Land Transaction Tax, which work slightly differently.

There are lots of rules when it comes to property tax and it can be quite complicated, so be sure to read our full guide to Stamp Duty, to understand exactly how it works.

Building insurance

Most lenders will require you to have building insurance in place before they release the mortgage funds, usually before you exchange contracts.

Building insurance covers your property’s walls, roof and floors from risks like fires, flooding, leaks and storm damage, and could cover the cost of rebuilding your home if it’s destroyed.

The cost of your policy will depend on the type of property you’re buying, the number of rooms, when it was built and other factors. But the average price of a buildings insurance policy is £203 a year, according to comparison site GoCompare. If you opt for a combined buildings and contents policy (which also covers your belongings), the average cost is £223 a year for a flat and £232 a year for a house.

Your best bet is to use a comparison site like GoCompare, Compare the Market and MoneySupermarket to get some home insurance quotes. Do this every year before your policy comes to an end to make sure you’re always getting the best deal.

It’s also a good idea to check reviews of the insurance companies too using a review site, such as our sister company, Smart Money People.

Important

*Your home may be repossessed if you do not keep up repayments on your mortgage. Be Clever With Your Cash may receive a payment from Tembo Money if you complete a mortgage through the link provided. This will not affect the amount you pay for the service.

This broker fee discount of up to £499 is applicable for standard mortgages and remortgages only, more complex cases including guarantor, buy-to-let, adverse credit, and equity transfer may be liable for a fee. The fee you are required to pay will be clearly outlined by your adviser prior to an application being submitted on your behalf. The offer does not cover any other potential fees that may arise during the mortgage process.

Tembo Money Limited (12631312) is a company registered in England and Wales with its registered office at 18 Crucifix Lane, London, SE1 3JW. Tembo is authorised and regulated by the Financial Conduct Authority under the registration number 952652. Tembo Money was awarded Best Mortgage Broker at the British bank awards in 2022, 2023, 2024 and 2025. Rates are not guaranteed and may change by the time you come to apply. Eligibility criteria may vary by lender.

Our calculator is only an estimate of how much you are able to borrow and does not constitute mortgage advice