Buying a house – what does it really cost?

It is not just mortgage costs that you need to consider when buying a property, there are a number of other major upfront costs that need to be budgeted for.

  • Deposit – how much do you need to put towards the cost of the property when you buy your home. On average, you will need at least 5% to 20% of the purchase price (for example £10,000 to £40,000. Generally, the bigger the deposit, the lower your mortgage interest rate is likely to be
  • Land and Buildings Transaction Tax (also known as Stamp Duty in England) – the government tax paid on homes costing £145,000 (in Scotland) or more.  Remember though that there is a surcharge of 3% if either party already owns a property anywhere else in the world
  • Mortgage fees and costs – this will vary depending on lender
  • Home Report and Surveyors fees – the Home Report is a document comprising the single survey, a property questionnaire completed by the seller and an Energy Performance Certificate. Sometimes you may want to obtain a House Buyer’s survey (or buildings survey) which provides an independent thorough and detailed inspection of the property
  • Removal costs – typically £300-£600, although some removal firms charge more at weekends and at the end of the month.

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