The cost of buying a house

We break down seven common costs associated with buying a home.

A deposit is the tip of the iceberg when it comes to buying a home. From legal fees and buildings insurance to stamp duty and removals, there’s a host of smaller costs that can rapidly build up if you’re not careful.

The average move comes to just over £10,000 for a house worth £292,000 in 2025. The actual cost of moving for you will depend on the value of your house, whether you’re a first-time buyer, the type of survey you get and much more. Let’s unpack seven common costs and help you get ready for your next move.

Advice fee

An adviser takes a lot of the hassle out of the mortgage process. They do all the research for you, and they might be able to find exclusive deals and discounts. They can help you find a specialist mortgage if you have a small deposit, you’re self-employed or haven’t been with your employer for long. They’ll often help with the paperwork and explain all the industry jargon too. And you’re secure in the knowledge that they’ll only recommend mortgages that are right for your needs.

Naturally, all these benefits attract a cost. Our advisers always outline their fees at the start of the process so you know exactly what you’ll be paying.

Mortgage fees

You’ll need to pay your lender a few administrative fees when you apply for a mortgage. Comparing these fees across lots of different deals can get confusing, and some of them can have a significant impact on the overall cost of your mortgage. Fortunately, our mortgage advisers can help you understand them.

A booking fee effectively reserves the loan whilst your application is processed and is typically £100 to £200.

An arrangement fee covers the cost of setting up your mortgage. Some lenders charge flat fees whilst others charge a percentage of the loan, which can get expensive if you’re taking out a large mortgage.

A valuation fee pays for the lender’s survey of your property to make sure it’s priced appropriately. The valuation also confirms how much they’re willing to lend you. This can cost between £100 and £300 depending on the property, but some mortgages come with free valuations.

Homebuyer survey

You don’t need a homebuyer survey, but an inspection of your new home gives you peace of mind. It’ll also highlight any potential problems, which could save you thousands in repairs. The cost of a survey varies from £400 for a basic inspection up to £1500 for a thorough one. Our advisers can point you towards reputable chartered surveyors.

Legal fees

These pay for a solicitor to do the legal paperwork for you, a process known as conveyancing. Legal fees can vary depending on the level of service you want and the experience of the solicitor, but it’s wise to allow around £2,000 to make sure you’re covered.

Home insurance

Your lender will need you to take out buildings insurance to protect your home from fire, floods and other damage. It’s often a good idea to get contents insurance to cover your possessions too, and many insurers offer combined deals. The average cost of combined buildings and contents insurance is around £400 but, as with most insurance, it’s worth shopping around to find a good deal.

Stamp Duty

Most homebuyers need to pay stamp duty, but exactly how much you pay depends on the value of your home, whether you’re a first-time buyer, whether you own other property or if you’re eligible for an exemption.

From 1 April 2025, stamp duty rates are as follows:

There are plenty of online calculators you can use to work out how much stamp duty you might need to pay, but our mortgage advisers can help with this too. Check the government website for a full list of rates, additional charges and exemptions.

Moving costs

Once you’ve got the keys, it’s time to start packing things up. Removal costs vary dramatically depending on how much (and how far) you’re moving. You could pay as little as £400 to move out of a 1-bedroom flat and over £2,300 to move from a 4-bedroom house, so this is one area where planning (and saving) ahead is crucial.

Understanding the costs of buying a home can help you get prepared for moving day and avoid any unwelcome financial surprises. Take the stress out of homebuying. Talk to one of our advisers today if you’re in the market for clear, non-nonsense mortgage advice.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

GHL Direct is a trading name of GHL Network Services which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 07/04/2025