Hidden Costs of Buying a Property in the UK: What You Must Know

Hi, I’m Ishtika Muhammad, and welcome to our channel.

If you’re planning to buy a property in the UK, it’s important to understand all the costs involved. Here’s a clear breakdown of everything you may need to budget for.

1. Deposit

Your deposit amount will vary depending on your circumstances.

• Standard deposit: ~10% of the property value
• Lower deposits: Some may qualify for 5%
• Rare cases: 0% deposit options exist
• Best advice: Speak to a mortgage adviser and obtain a Decision in Principle (DIP) to understand what deposit you’ll need before starting the process.

2. Stamp Duty

Stamp duty depends on whether you are a first-time buyer.

• First-time buyers: No stamp duty on properties up to £300,000 (as of today).
• If your property value falls under this threshold, you may be exempt.

3. Legal Costs

Legal fees vary based on the solicitor, the property, and its location.

• Typical range: £700 to £2,000
• Additional charges may include:
  • Land Registry fees
  • Local searches
  • ID verification checks
• As a rule of thumb, budget around £700, though this can differ.

4. Mortgage Costs

Mortgage-related costs can include:

Product Fee

• Typically around £999–£1,000
• Some deals may charge £1,500–£2,000

Valuation Fee

• Often free for first-time buyers but not always
• Possible charges range from £250 to £700, depending on property type

Broker Fees

• Vary from broker to broker
• At WS Mortgages, we do not charge any broker fees
• Many good brokers offer a no-fee service, so this does not reflect quality

5. Survey Costs

Surveys are optional but advisable for understanding the property’s condition.

• Range: £500 to £1,500
• Larger, older, or centrally located properties may cost more

6. Moving Costs

Moving costs are often forgotten but important to factor in. You can move in three ways:

1. Hire a van and move yourself – cheapest
2. Man-and-van service – moderate cost
3. Professional movers – most expensive, especially with full-service packing
   • Costs depend on how much work you do yourself

7. Unforeseen Costs

Unexpected repairs often arise after moving in.

• Common issues: boilers, heating, electrical, plumbing
• Boiler repairs alone can cost £3,000–£4,000 including labour
• New-builds are less likely to have these issues but not immune
• Budget something for unexpected fixes

8. Ongoing Living Costs After Moving In

Once you move in, your monthly expenses may change.

• Mortgage payments
• Electricity and gas – likely higher if moving to a larger home
• Council tax – usually higher with additional bedrooms or larger property size
• Home insurance – typically required by lenders
  • Approx. £50–£100 depending on the policy
• Life insurance – recommended, especially if you’re the main income earner

Final Thoughts

These are the key costs to consider when planning your move. If you have any specific questions or want personalised guidance:

Contact us at 0203 LE 1986

This is Muhammad signing off on behalf of WS Mortgages.