Home-buying Costs

Costs involved in buying a house

As well as your monthly mortgage payments, there are other costs associated with buying a home, such as land tax and costs for a solicitor. Our checklist is a starting point for some of the other things you might need to pay for.

7 home-buying costs to consider...

  1. 1

    Valuation fee

    When you apply for a mortgage, we will complete a mortgage valuation of the property. This helps them decide if the property is a suitable security for the mortgage you’ve applied for.

    The cost varies according to the lender and property size & value, but it's worth budgeting between £250-£1,5001. These fees are sometimes waived as part of a mortgage deal or promotion.

  2. 2

    Survey Costs

    A mortgage valuation is a relatively basic evaluation. Various other assessments can be completed to provide more detailed insight.

    These are generally optional, but could be a great way to get piece of mind and can provide insight into potential problem areas that may need to be addressed.

    Additional surveys can range from a few hundred pounds, to multiple thousands for extensive reports on a large property.

    Learn more about surveys

    It's a good idea to consider different survey options, as they can provide invaluable information about the property you're considering.

  3. 3

    Solicitor costs

    A solicitor or conveyancer will carry out the legal work when buying and selling your home. Legal fees normally range from £850 to £1,5002 depending on the type & location of the property, and the complexity of the transaction.

    Your solicitor will probably incur additional costs for you to cover, such as money transfer fees, land registry fees and fees for necessary searches. This detail should be covered in a quote from a solicitor, so don't be afraid to shop around or seek recommendations from friends or family, if you think you could get a better deal.

  4. 4

    Home insurance

    Home insurance helps protect your home and belongings. It can cover repair or rebuild costs for damage from something like a fire, storm or flood. It can also cover the cost of replacing the things in your home if they're stolen, or repairing or replacing them if they're damaged.

    While home insurance isn't mandatory for homeowners, some mortgage lenders may stipulate it as a requirement for a mortgage agreement.

    The cost of home insurance can vary depending on many factors, some of which are the level of cover you opt for, the type of property you’re looking to insure and the location of where you live.

    Find our more about your options and things to consider.

    NatWest Home insurance is underwritten by U K Insurance Ltd.  

    Life insurance for Mortgage Customers

    It is important to protect yourself and your loved ones, should the worst happen. Having life insurance could help you continue to take care of them at the time when you can no longer do so. Life insurance is provided by AIG Life Ltd. 

  5. 5

    Paying Stamp Duty or other land taxes

    Depending on the property you're buying, you may have to pay Stamp Duty in England or Northern Ireland, or other land taxes in different areas of the UK.

    Many first time buyers are excluded from paying Stamp Duty.

    You can find out more about stamp duty and how much you might need to pay

  6. 6

    Moving costs

    Hiring a company to move your belongings usually costs between £300 and £6004, depending on the size of the property and if you want them to pack and/or unpack for you too.   

    You could save money by hiring a van and doing it yourself. Just arm yourself with boxes, tape, marker pens and some strong friends.

  7. 7

    Leasehold property fees

    If you're buying a leasehold property, you may need to pay a service charge and ground rent (sometimes called factoring and ground annual costs in Scotland). These are paid to the freeholder of the property, who owns the land.

    The average service charge is estimated to be around £1,900 a year5, but figures can vary significantly depending on the property and location. This is usually paid in monthly instalments.

    It is also important to understand the remaining term on a lease. When a lease expires, a leaseholder will need to negotiate a new term with the freeholder, which can be a very costly.

    Find out more about freehold vs leasehold.

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