Fees and costs explained

Before buying your home, you will have to take into account other costs that come with getting a mortgage and buying a place to live. You will also have to bear in mind that once you have moved in, there will be ongoing costs other than your mortgage.

Fees and costs - things to consider

The expense of buying your first home is not just about the price of the property. As a first time buyer it’s vital to bear in mind the other costs involved. For starters, there’s the deposit. For instance, if you’re buying a house for around £150,000 and want to put down a 10% deposit, that’s £15,000 you’ll need to have saved.

That’s not all. There are the other costs you usually come across when buying a property.  

  • Booking fee - the booking fee is the charge that a bank or building society may put on a product to secure the rate of the mortgage. This is sometimes referred to as the application fee. The usual cost of this fee is from £100-200. 
  • Completion fee - this is the fee for the mortgage product. This may also be referred to as an arrangement fee. You may have the option to add this to your mortgage in most cases although this can affect the amount you owe, your interest and your monthly payments.
  • Stamp duty - stamp duty (or Land and Buildings Transaction Tax in Scotland) is a lump sum tax that anyone buying a property, or land costing more than a set amount, has to pay. The rate of this tax will vary depending on the value of your property.  
  • Valuation fee - the mortgage lender will assess the value of the property to establish how much they’re prepared to lend you. This fee can be anywhere from £150 up to £1,500 according to the property’s value. Some lenders might not charge you for this, depending on the type of mortgage product you choose. It’s important to remember that the lender’s valuation is not an extensive in-depth survey and may not identify all the repairs or maintenance that might be necessary.
  • Survey fee - before buying a house you should have it checked by a surveyor. This will uncover any issues and concerns about the property before you buy it. The survey could be a basic home condition survey, costing around £250; or a full structural survey upwards of £600. Never underestimate the value of a good detailed survey as it can save you money on repairs later down the line. 
  • Legal fees - you will need a solicitor or licenced conveyancer to carry out all legal work when buying and selling your home. They will also do local searches, normally for about £250-£300, which are crucial when checking if there are any local plans or issues. In addition, bear in mind the legal fees, typically £500-£1,500 with VAT at 20%.

Costs when owning a home


Nearly all lenders require borrowers to have home insurance to protect your home. The costs of home insurance will depend on the type of home, its value and the area you live in. You can get a competitive home insurance quote from us here at the West Brom.

For life insurance, this will reflect your age, activities, habits and dependents. 

General upkeep of your home

We can all hope for a trouble-free home but things will inevitably go wrong with it from time to time. General maintenance alone, even if it’s regular wear-and-tear over time, will need paying for. The average repair bill for new homeowners is estimated at £4,205.

Council tax

The amount you pay is based on where you live and the valuation the property is in (apart from Northern Ireland where rates are set individually). You can check your council tax band by going to the Gov.uk website.

Bills, bills and more bills

There’s no getting away from the running costs of a home – the likes of water, gas and electricity and this is before you include other bills such as telephone, television or broadband.

Average repair bills - http://www.thisismoney.co.uk/money/mortgageshome/article-2630260/Eager-home-buyers-left-4k-repair-bills-not-checking-condition-property.html