Before you start the process, be prepared to cover these payments:
A property survey will look at the physical condition of your intended home. It isn't a legal requirement but it’s a good idea. If your home needs repairs after you’ve bought it, they may be expensive. Knowing about any issues beforehand could help you negotiate a lower price or give you a reason not to purchase the property.
There are several types of surveys offering different levels of property inspection:
Before agreeing to offer you a mortgage, your lender will typically arrange a valuation for mortgage purposes. It’s an assessment that will help them confirm the property’s value and whether it is suitable security.
You may need to cover the cost of this valuation. However, some providers may have no charge. It’s important to understand that a valuation for mortgage purposes is not the same as a property survey. It's prepared for your lender only – you won’t be able to rely on it.
Keep in mind – if you agree to pay more than the value of the property, your mortgage lender may not lend you the amount you need.
Explore: What is a mortgage valuation?
When buying a property, a solicitor or licensed conveyancer will charge for the related legal work. They’ll also pass on any costs they incur for property searches – these are enquiries made by your conveyancer to find out more about the property you want to buy.
Explore: Conveyancing and property searches: what you need to know
The Land Registry is a government department who register the ownership of land and property in England and Wales. They charge a fee when a property is registered to a new owner. Your solicitor or licensed conveyancer may deal with the Land Registry directly, and the amount charged will depend on the property price.
When you buy a property in the UK, you may need to pay tax.
In England and Northern Ireland, this is called Stamp Duty Land Tax (SDLT). In Wales, it’s called Land Transaction Tax (LTT) and in Scotland, it’s called Land and Buildings Transaction Tax (LBTT).
The amount of Stamp Duty you pay will vary, depending on several factors. For example, whether you’re a first-time buyer and the price of the property.
Explore: When do you have to pay Stamp Duty?
An arrangement fee is what you pay a lender to arrange and process your mortgage. It is sometimes known as a product fee or completion fee.
Most mortgage lenders require you to have buildings insurance in place when you exchange contracts on a property.
Buildings insurance protects you against the cost of repairing or rebuilding your home from scratch should it get damaged, so it’s important to consider getting the cover you need.
Explore: How much home insurance do you need?
You may need to hire a removal company to transport your furniture and other belongings to your new home. If you move a considerable distance from your current home or have a lot of large furniture, this service could be expensive. You may want to compare a few quotes from different companies.
Your home may be repossessed if you do not keep up repayments on your mortgage.
