• The cost of buying a home in Britain

    Buying a property is the biggest financial decision you’re ever likely to make. That’s why borrowing well when it comes to your mortgage is so important.

    So to make the process a little easier and more transparent, we’ve created this guide to the cost of buying a property in Britain.

    We hope it helps.
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    So you want to buy a home? Great.

    This is our guide to some of the
    costs of buying a property in Britain.

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    House prices in Britain

    House prices in Britain increased by 10.5% in the year to May 2014. That’s up from 9.9% in the year to April 2014.

    During the year to July 2014, average house prices increased by 12% in England, 7.4% in Wales, and 7.6% in Scotland.*

    Select a country or region for more details.

    Buying a property is the largest investment most people will ever make.

    In 2012 the average mortgage was over 3 times the size of buyers' annual income.

    As well as the cost of the mortgage, there are other costs you might need to consider too. We’ve collected them together so you can get a sense of what you might need to pay.

    Non-mortgage costs

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    Deposit

    Minimum 5 %-20% of the purchase price
    Some banks offer 100% mortgages, they lend you the full cost of your new house, but usually at a more expensive rate.

    Stamp Duty

    Increments of 2%-12%***as the price of your house increases from £125,000 to £1.5 million +
    If your home costs less than 125,000 congratulations! You don’t have to pay Stamp Duty! Stamp Duty is different in Scotland, please visit this link for more information.*

    Removal Costs

    £3002000
    3 men and a big van for one very long day...

    Legal costs

    £0250 for Local Searches £0500 for legal fees

    Local Searches - to check whether there are any local plans or issues.

    Legal fees - what your solicitor charges you for handling the handover of money.

    Electronic Transfer Fee

    £4050 to transfer the mortgage money to your solicitor
    The actual cost of moving the money.

    Surveyors Fee

    Basic home condition survey from £250 or full structural survey from £600

    Basic home condition survey - For newer houses, or if you don’t expect any structural issues.

    Full structural survey - For older houses, or those with obvious issues.

    The government, solicitors, surveyors, removal firms – there are a lot of people involved when you buy a property, and most of them come with a price tag. These are some of the things you need to pay for before you can buy and move into your new home.**

    Select the icons for more details.

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    Okay, that looks all pretty
    daunting, doesn’t it?

    Let’s make things simple.

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    If your new home costs
    you’d pay around
    £X,XXX

    Average upfront costs

    Value of the property:
    £50,000£1,000,000

    These are the costs you should expect to pay, inclusive of deposit and stamp duty, on top of your mortgage cost when you buy a new home (excluding any mortgage fees).**

    Use this tool to get a better idea of what your costs might be.
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    If your new home costs
    you’d pay around
    £X,XXX

    You’ll also need to consider
    mortgage fees, so we’ve
    put together details of what
    you might pay.

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    Mortgage fees

    These are the fees that your lender charges you for giving you a mortgage. This is how they cover their costs.**

    Likely mortgage fees can include:

    Arrangement or Account Fee
    £265
    Mortgage Valuation Fee up to
    £1,250
    Booking fee
    £1,999

    Good luck with your new property

    At TSB we know how important it is to borrow well, so if you need assistance finding the right mortgage for you, we’re here to help.

    See our website for more information.

    Your home may be repossessed if you do not keep up repayments on your mortgage.

    Use our mortagage
    calculator
    Share this
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    The cost of buying a home in Britain

    So you want to buy a home

    House prices in Britain

    Buying a property

    Non-mortgage costs

    Let's make things simple

    Average upfront costs

    You'll also need to consider

    Mortgage fees

    Good luck

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