The True Cost of Buying a Home

After weeks or possibly months of searching, having seen more living rooms and kitchens than you would care to admit, you have finally decided to take the plunge and buy your first home. So, how exactly do you go about it? What are all the fees involved? What is the true cost of buying a home?

Paying for the new home itself is obviously going to be the overwhelming sum, but there are also additional costs that can tot up and put an extra 5-10% on to the total bill. It is important to be aware of these fees and budget them in when making any big decisions.


The first thing to consider is saving up for a deposit. You will need at least 5% of the value of the home to secure the property, although ideally you will want a larger percentage to secure a better mortgage rate.


Unless you are able to afford the cost of the property outright you will need to find out how much of a mortgage you can lend. In order to do this you will need to speak to an advisor. The amount will be based on a few variables, which more often than not are the size of the deposit, your salary and your credit history.


There has been a lot written about Stamp Duty recently, and although there may be a surcharge for buy-to-let investors or anyone buying a second home, it is also applicable for first-time buyers. It is a charge applicable to any home that costs over £125,000. Depending on the cost, different rates will apply.

For example,

if you are buying a house worth £200,000, stamp duty will be calculated as follows:

0% on the first £125,000 = £0 2% on the next £125,000 (£75,000 in this case) = £1,500

Total stamp duty payable = £1,500


In the next step, your chosen mortgage company will value the property and check its condition. There are normally a range of reports that you can decide between from a basic home buyers report to a full structural survey’ being the most detailed and the most expensive. I could be best to be thorough at this stage than be stuck with an expensive maintenance down the line!


You will need to appoint a solicitor (conveyancer) to help with the legal aspect of the purchase. A solicitor will charge their fees and take care of all the contract work. They will also charge disbursement fees which are additional searches such as checking any plans in place around the area of the property which may affect you as the owner. You wouldn’t want that perfect home to be spoiled by a brand new motorway at the bottom of the garden!

It may seem like a lot, but it is always best to know the full extent of the process beforehand so you are certain you have enough saved. We know how stressful the process of buying a house can be. So if you are thinking about getting on to the property ladder, and would like some advice, request a call back below or get in touch with one of our award winning branches and good luck with your home purchase!