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Let us guide you through the costs involved when buying a property.

When you're ready to purchase a property it's often easy to overlook the costs involved other than mortgage payments and your deposit.

This guide gives you a breakdown of all the different fees and charges you might need to pay when you're buying a new home.

What will I need to pay upfront?


This is the amount you put towards the cost of purchasing the property. This, together with the amount of your mortgage loan makes up the entire purchase price. The Loan to Value of your mortgage is the percentage of the property purchase price not covered by the deposit so for example:

Property price: £200,000
Your deposit: £20,000

This means your mortgage would be £180,000 and your Loan to Value 90% (£180,000 is 90% of £200,000)

The more you can put towards your deposit, the lower your mortgage loan will be and so the repayments may also be lower, although this depends on the interest rate and the mortgage term.

Stamp duty land tax

This is a government tax that you will need to pay if your property costs £125,001 or more.

The amount you have to pay depends on the purchase price of the property you're buying.

You can find further details atgov.uk.

In Scotland, Land and Buildings Transaction Tax applies instead.

You can find further details atgov.scot.


Before we can lend you the money to buy your home, we need expert guidance on what the property is worth as security for us.

This is not a survey and so may not identify any repairs that might be needed. Because of this, you may also want to have your own survey carried out.

The cost of the valuation depends on the property amount. See a breakdown of survey and valuation costs.

Survey Options

A survey of any potential property is advisable and ensures that there are no nasty surprises or additional costs after you move in. All mortgage lenders will require you to get a basic valuation of the property (i.e. a professional assessment of the market value for lending purposes) but it's also a good idea to get an independent survey carried out to check whether or not there are any repairs to be done. You can then decide if you want to negotiate a reduction in the price or ask the seller to complete the necessary work prior to exchanging contracts.

There are 3 types of survey...

  • Home Condition report
    A very basic survey, with no valuation included and no advice given.
  • Homebuyer Report
    This focuses on urgent matters needing attention, it doesn't however detail every aspect of the property. A standard mortgage valuation is included.
  • Building Survey
    This is a detailed and comprehensive report that can be tailored to suit your needs. It will highlight any faults and advise on any repairs that are needed. A valuation is not included but this can be arranged directly with the surveyor and will be required for us to process your mortgage application.

Legal fees

If you're buying, selling or remortgaging your home with us from another lender you must have a solicitor or licenced conveyancer to carry out all the legal work.

When buying a home your legal adviser will also do a local authority search to check whether there are any financial charges or local issues affecting the property such as planned road alterations, tree preservation orders, compulsory purchase or clearance area orders. This will usually cost around £200. On top of this the legal fees are typically £500-£1,500 including VAT at 20%.

Estate agent fees

This is a fee for the estate agent's services and is paid by the seller not the buyer. The cost is negotiated when they put the property on the market and is usually 1% to 3% of the sale price plus 20% VAT.


You might want to employ a removal company to help take the stress out of moving, or hire a van and do it yourself.


What are the one-off mortgage costs?

Mortgage product fee

Depending on which mortgage product you choose, you may have to pay a product fee. The reason we usually charge this is that it helps keeps the initial interest rate lower. If there is a product fee, it will be clearly stated on the mortgage product information pages.

Mortgage Application Processing fee

Our processing fee is £130 which you will usually have to pay when applying for your mortgage. It covers the costs involved with processing your mortgage application from start to finish and is strictly non-refundable.

As well as the application and product fees, you may incur other charges. See a breakdown of other costs.


Remortgage fees

Early repayment charge and/or exit fees

You should check with your existing lender about any fees you may need to pay when you want to switch to a new lender. Your Redemption Statement will tell you how much you need to repay your existing mortgage plus any applicable fees.

Valuation fee

A valuation will need to be carried out on your current property when you wish to switch mortgages to a new lender. This tells us that the property offers adequate security against your loan. Our Mortgage Valuations page details this cost.

Please note, unlike a new home purchase, you won’t need a survey.

Conveyancing/solicitor fees

Remortgage applications require that you have a solicitor or licenced conveyancer to carry out the legal work on your behalf, much the same as a mortgage for moving home.

Legal fees for a remortgage or mortgage application can be between £500 and £1,500 including VAT (20%). On top of that, there will be a charge for the local authority searches that your legal representative will need to do – this is usually around £200.

Mortgage product fee

You may have to pay a product fee for the mortgage you choose and these can vary from product to product. The fee will be stated on the mortgage product details when you select which deal you want.


What are the other ongoing costs for a property?

Household utility bills

You will need to budget for running costs like gas, electricity, water and TV packages and broadband.

Council tax

The amount you can expect to pay varies, it depends on where you live and the valuation band the property is in.


We require that you take out buildings insurance to protect your home from fire, flood and other specified risks. It is advisable that you also have contents insurance for all your possessions and life / sickness insurance. See more information here.

Ground rent & service charges

If you have a leasehold property you will have to pay ground rent and service charges. These charges differ for each property, so it is important you fully understand what the charge relates to and when it is payable.

Property maintenance

If you had a survey carried out then this should have highlighted any problems that need fixing straight away, but you should budget for unexpected repairs and general maintenance.

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