The True Cost of Buying a Home: What to Budget For
Most people know they need a deposit to buy a property, but the total upfront cost of a purchase is often higher than buyers expect. Understanding every cost involved before you begin your search helps you plan properly and ensures there are no unwelcome surprises along the way. At Akers Pritchett, our advisors walk every client through a full cost breakdown from the very first appointment, whether they are a first-time buyer, a home mover, or a buy-to-let investor.
Your Deposit
The deposit is typically the largest single upfront cost. Having a larger deposit generally opens up more competitive rates and a wider range of products, as it reduces your loan-to-value (LTV). A lower LTV gives lenders greater confidence and typically unlocks better deals. Our advisors will always factor your deposit size into their recommendations so you have a clear picture of what is available to you at different deposit levels.
Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is payable on property purchases in England, with the amount dependent on the purchase price and your individual circumstances. Different rates apply depending on whether you are a first-time buyer, an existing homeowner moving to a new property, or purchasing a buy-to-let or additional property. Our team will always factor the SDLT liability into your overall budget so the total cost is clear before you commit to a purchase.
Solicitor and Conveyancing Fees
You will need a solicitor to handle the legal transfer of ownership, known as conveyancing. Solicitor fees vary depending on the complexity and value of the transaction. Your solicitor will also charge for searches carried out on the property, covering matters such as planning restrictions, drainage, and local authority records that may affect the property or your plans for it. These fees are paid during the purchase process rather than upfront, though they need to be budgeted for from the outset.
Survey and Valuation Fees
Your lender will carry out a valuation to confirm the property is worth the amount being borrowed against it. Some lenders include this as part of their product. In addition, you may wish to commission an independent survey of the property’s condition, particularly for older properties, which can identify potential issues before exchange of contracts. Our advisors can help you understand the different levels of survey available and what each one covers.
Mortgage and Lender Fees
Some mortgage products carry an arrangement fee, which can sometimes be added to the loan rather than paid upfront. Our advisors always calculate the true overall cost of each product, including any fees, so you can compare deals on a genuinely like-for-like basis rather than by headline rate alone.
Buildings Insurance
Most lenders require buildings insurance to be in place from the date of exchange of contracts. Our protection team can help you arrange appropriate cover alongside your mortgage so nothing is left uncovered from day one.
Get in touch with our team today for a full cost breakdown tailored to your situation. We help buyers across Nottingham, Derby, and Leicester.
Frequently Asked Questions
Do all of these costs need to be paid at the same time?
No. The costs of a property purchase fall at different stages of the process. Solicitor fees and search costs are typically settled around completion. A lender arrangement fee can sometimes be added to the mortgage loan. Your deposit, however, must be available by the time you exchange contracts. Our advisors will walk you through the timing of each cost so you can plan your finances carefully across the full purchase process.
Are the costs different for a buy-to-let purchase?
The broad categories of cost are the same, but there are important differences. A larger deposit is typically required for a buy-to-let purchase, and Stamp Duty Land Tax is charged at a higher rate for buy-to-let and additional properties. Ongoing management costs through a letting agent may also need to be factored in. Our buy-to-let advisors will help you understand the full cost picture for an investment purchase before you proceed.
What evidence do I need to provide for my deposit?
Lenders will typically want to see recent bank statements confirming that the deposit funds are held in your account. If any part of the deposit is a gift from a family member, the lender will usually require a signed gifted deposit letter confirming the funds do not need to be repaid. Our team will confirm exactly what documentation is needed for your specific application well in advance of submission.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority.
As with all insurance policies, conditions and exclusions will apply.