According to CompareMyMove, fees when buying a home make the average cost of buying a house in the UK sit at around £33,070 (including your deposit) - based on the home costing £277,000 in total. This fluctuates depending on the type of property you buy, where it’s located and the level of service you opt for. For example, some solicitor fees are based on a sliding scale.
Mortgage application
Your largest upfront cost will naturally be your mortgage deposit. How much is needed for a deposit on a house will depend on the value of the property and the percentage you can afford to pay. 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.
When you apply for a mortgage your lender 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, and this validates your mortgage deal. This mortgage valuation fee will sit anywhere between £250 to £1,500, depending on the size of your desired home.
While this valuation process assesses what your property is worth, it is by no means an entirely comprehensive survey. For this reason, many buyers will opt for their own private survey, to ensure there are no structural issues that may cause problems (and cost money) further down the line. When it comes to the cost of a home buyer survey, 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 fees
When your mortgage application has been accepted, there may be some up-front mortgage loan 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 - Sometimes known as a ‘product fee’ or a ‘completion 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.
