Most buyers focus on saving for their deposit, but that’s only one part of the cost. Here’s what else you should budget for before moving into your new home.
You’ve saved your deposit.
You’ve found a home you love.
You’ve got your Mortgage Agreement in Principle.
Everything is falling into place… until the extra costs of buying a house start appearing.
For many buyers, it’s not the deposit that causes the biggest surprise, it’s the hidden costs of buying a house.
While some costs are unavoidable, the good news is that most can be planned for. Knowing what to expect from the start can help you budget more accurately and avoid unnecessary stress later in the buying process.
Here’s a breakdown of some of the most common costs buyers forget about.
1. Solicitor Fees
Once your offer has been accepted, you’ll need a solicitor or licensed conveyancer to handle the legal side of your purchase.
This typically includes:
- Legal work
- Property searches
- Land Registry fees
- Transferring funds
- Liaising with your mortgage lender
Costs vary depending on the property and the solicitor you choose, so it’s worth obtaining a quote early on.
2. Property Searches
Searches are usually arranged by your solicitor and help identify any issues that could affect the property.
These may include:
- Local Authority searches
- Water and drainage searches
- Environmental searches
Although they’re an essential part of buying a property, they’re often overlooked when budgeting.
3. Survey Costs
Many buyers assume the lender’s mortgage valuation is a survey.
It isn’t.
A mortgage valuation is carried out to help the lender assess whether the property offers suitable security for the loan. It may not identify defects or maintenance issues.
Depending on the age and condition of the property, you may wish to arrange your own survey for additional peace of mind.
Choosing the right survey could potentially save you thousands of pounds by highlighting issues before you complete your purchase.
4. Stamp Duty
Depending on the property’s value and your individual circumstances, you may need to pay Stamp Duty Land Tax (SDLT).
The amount payable varies and not everyone will have a Stamp Duty liability, so it’s worth checking your position early in the buying process.
5. Mortgage Broker Fees
Some mortgage brokers charge a fee for their advice and arranging your mortgage, while others don’t.
Before you proceed, make sure you understand exactly what fees, if any, apply.
A good mortgage adviser will always explain this clearly from the outset.
6. Buildings Insurance
Most mortgage lenders require buildings insurance to be in place from the point you become legally responsible for the property.
This is often forgotten until the final stages, but it’s something you’ll need to arrange before completion.
7. Moving Costs
Whether you’re hiring a removal company or borrowing a van from family, moving home often comes with additional costs.
Don’t forget to budget for things like:
- Removal services
- Packing materials
- Storage (if required)
- Cleaning costs
8. Furniture and Appliances
Buying your first home often means purchasing more than just the property.
You may also need:
- Beds
- Sofas
- White goods
- Curtains or blinds
- Garden equipment
These costs can quickly add up, so it’s worth prioritising what you need immediately and what can wait.
9. Unexpected Repairs or Improvements
Even if a property appears to be in excellent condition, there may still be small jobs you’d like to tackle once you’ve moved in.
Whether it’s decorating, replacing carpets or repairing a fence, having a small contingency fund can make those unexpected expenses much easier to manage.
Ongoing Costs of Buying a House
It’s also important to think beyond the purchase itself.
Once you’ve moved in, your monthly budget may include:
- Mortgage repayments
- Council Tax
- Gas and electricity
- Water
- Broadband
- Home insurance
- Service charges or ground rent (where applicable)
Understanding your ongoing commitments is just as important as budgeting for the purchase.
A Simple Tip: Build a Buffer
One of the best pieces of advice we can give is to keep a little money aside if possible.
Having a financial buffer for unexpected costs can make moving home far less stressful and gives you flexibility if something doesn’t quite go to plan.
The Bottom Line
Saving for your deposit is a fantastic achievement, but it’s only one part of the cost of buying a home.
By planning for the costs of buying a house, you’ll be in a much stronger position when it’s time to collect the keys.
If you’re not sure what costs might apply to your purchase, our team is always happy to help. We can explain what to expect, answer your questions and help you prepare for every stage of your home-buying journey.
