The true cost of buying a house

Common fees associated with the home buying process: A guide by Furness Building Society

Costs of buying a home

Buying a new home, whether for the first time or third, can be tricky. However clued up you might feel on the processes and best practice involved, there can often be a surprise along the way that adds to the cost.

The key thing to note is that your costs will vary depending on your circumstances. If, for example, you're a first time buyer, you won't be burdened with the additional fees associated with selling a home. Check out our guide for first time buyers.

In this handy guide, we’ll help you better plan your budget and cover all of the realistic costs along the way including:

  • Mortgage fees and deposit
  • Valuations and surveys
  • The legal bits
  • The additional fees associated with second time buyers
  • Moving costs

Initial costs of buying a house

According to CompareMyMove the additional costs involved make the average cost of buying a house in the UK sit at around £33,070 - based on the home costing £277,000 in total. Granted, this fluctuates depending on what and where you buy and what level of service you opt in for - for example some solicitor fees are based on a sliding scale.

Mortgage application

Your largest upfront cost will naturally be your mortgage deposit. This usually sits anywhere between 10% and 40% of the total house value and the more you can put down, the better interest rates you will be offered.

Alongside a deposit, your mortgage application will require a valuation of your chosen home. This valuation assures your lender that the value of the property you want to buy is correct. This fee will sit anywhere between £250 to £1,500, depending on the size of your desired home.

Whilst this valuation process does have a nosey at your new home to check it’s all in working order, it is by no means an entirely comprehensive process. For this reason, many buyers will opt for their own private survey, to ensure there are no structural issues which may cause problems (and cost money) further down the line. There’s a number of survey options available, each with a more thorough process involved than the previous.

House value £100K - £249K £250K - 349K £350K - £499K £500K - £1M
Rics Home Survey  - L1 £500 £600 £700 £950
Rics Home Survey - L2 £500 - £600 £600 - £700 £700 - £800 £1000
Rics Home Survey - L3 £700 - £750 £800 - £900 £900 - £1100 £1500

Mortgage costs

When your mortgage application has been accepted, there may beare occasionally some up-front fees associated with this process: an arrangement fee, booking fee and an electronic transfer fee. That said, it is possible to have a no fee deal, so it’s worth checking in with your lender ahead of time.

Arrangement fee - An arrangement fee can cost you anywhere between £0 to £2,000. Occasionally these can be added onto your mortgage repayments, but ultimately you will pay more in interest over time.
Booking fee - Some lenders will only charge a booking fee on properties over a certain value, or it may be combined with your arrangement fee. You can expect this to cost anywhere between £99 to £250.
Electronic transfer fee - This cost covers the money transfer fee from your lender to your solicitor. This fee will usually sit around sit around £100 but does vary according to the size of your property.

Legal costs of buying a house

Additional costs

Moving costs

Got any questions?

We hope this guide gives you a helping to start setting a realistic budget for your home buying process.

If you have any questions about the mortgage application and mortgage process, our dedicated team of experts are here to help. Give us a call on 0800 834 312, visit us in branch or send us a message.