Your deposit is just the beginning. When you buy a property in the UK, there is a long list of additional costs that can add thousands of pounds to the total. Some are unavoidable, some are optional but recommended, and a few are negotiable. This guide breaks down every fee so you can budget accurately and avoid nasty surprises.
Complete Fee Breakdown
Here is every cost you may encounter when buying a property, based on typical 2026 prices:
| Fee | Typical Cost | When Paid | Mandatory? |
|---|---|---|---|
| Mortgage arrangement fee | £0 – £2,000 | At application or added to loan | Depends on product |
| Booking/reservation fee | £99 – £250 | At application | Some lenders only |
| Mortgage valuation fee | £0 – £400 | At application | Yes (often free) |
| HomeBuyer Report (Level 2 survey) | £250 – £400 | After offer accepted | Optional but recommended |
| Full Building Survey (Level 3) | £400 – £700 | After offer accepted | Optional (recommended for older properties) |
| Solicitor/conveyancer fees | £850 – £1,500 | On completion | Yes |
| Conveyancing disbursements | £250 – £450 | During legal process | Yes |
| Stamp Duty Land Tax | £0 – varies | Within 14 days of completion | If above threshold |
| Mortgage broker fee | £0 – £500 | At application or completion | Only if using a broker |
| Buildings insurance | £150 – £400/year | From exchange date | Yes (lender requirement) |
| Removal costs | £300 – £1,500 | Completion day | Practical necessity |
| Land Registry fee | £40 – £270 | After completion | Yes |
| Typical total additional costs: £2,500 – £8,000+ | (excluding Stamp Duty and deposit) | ||
Mortgage Arrangement Fee
The arrangement fee (sometimes called a product fee or completion fee) is charged by the lender for setting up the mortgage. It ranges from £0 to £2,000, with most falling between £500 and £1,500 for competitive fixed-rate deals.
Generally, mortgage products with lower interest rates carry higher arrangement fees. This creates a trade-off: is it better to pay a £999 fee for a rate that is 0.2% lower, or take the higher rate with no fee? The answer depends on how long you plan to stay on the deal and the size of your mortgage.
Can I add it to the mortgage? Yes, most lenders allow you to add the arrangement fee to your loan balance. This avoids an upfront cost but means you pay interest on the fee for the life of the mortgage — a £999 fee added to a 25-year mortgage at 4.5% ends up costing approximately £1,700 in total.
Booking Fee
Some lenders charge a booking fee (also called a reservation fee) when you apply. This is typically between £99 and £250 and is usually non-refundable, even if your application is declined. Not all lenders charge this, and it is becoming less common.
Valuation Fee
The lender needs to confirm the property is worth at least the amount they are lending. They instruct a surveyor to carry out a valuation, which can be a physical inspection or a desktop assessment. The cost ranges from £150 to £400, though many mortgage products now include a free valuation as a selling point.
Remember: the lender's valuation is for their protection, not yours. It does not check for structural problems, damp, subsidence, or other defects. You should commission your own survey separately.
Survey Costs
While not strictly a mortgage fee, a property survey is one of the most important costs in the buying process. There are three levels:
RICS Level 1: Condition Report (£200–£350)
A basic visual inspection suitable for new-build or nearly new properties in good condition. Identifies significant issues but does not go into detail about defects or provide valuations.
RICS Level 2: HomeBuyer Report (£250–£400)
The most popular choice. Covers the property's condition, identifies problems that could affect value, and includes a market valuation. Suitable for most conventional properties built after 1900 in reasonable condition.
RICS Level 3: Building Survey (£400–£700+)
The most thorough option. Examines all accessible parts of the property in detail and is essential for older properties (pre-1900), listed buildings, properties with known problems, or unusual construction types. The surveyor provides detailed findings and advice on repairs.
Solicitor and Conveyancing Fees
You must use a solicitor or licensed conveyancer to handle the legal transfer of property ownership. Their fees typically range from £850 to £1,500 for the legal work itself, plus disbursements (third-party costs they pay on your behalf).
Common disbursements include:
- Local authority search: £100–£200 (reveals planning issues, building control records, highway matters)
- Environmental search: £30–£60 (checks for contamination, flooding, subsidence risk)
- Water and drainage search: £30–£50 (confirms connection to mains water and drainage)
- Land Registry search: £3–£6 (verifies ownership and any charges against the property)
- Bankruptcy search: £2 per person (lender requirement)
- Bank transfer fee: £20–£50 (for transferring completion funds)
Stamp Duty Land Tax (SDLT)
Stamp Duty is a tax on property purchases in England and Northern Ireland (Scotland has LBTT; Wales has LTT). As of 2026, first-time buyers pay no stamp duty on properties up to £425,000, with a reduced rate on properties up to £625,000.
For non-first-time buyers, the current thresholds are:
- £0 – £250,000: 0%
- £250,001 – £925,000: 5%
- £925,001 – £1,500,000: 10%
- Over £1,500,000: 12%
Additional property buyers (buy-to-let, second homes) pay a 3% surcharge on top of standard rates.
Mortgage Broker Fee
If you use a mortgage broker, they may charge a fee of £300 to £500, payable either at application or on completion. Some brokers charge no fee and earn their income solely from lender commissions. There is no evidence that fee-free brokers provide a worse service — the commission is paid by the lender regardless of whether the broker also charges you.
Hidden Costs to Watch For
Early Repayment Charges (ERCs)
If you repay your mortgage (or overpay beyond a set limit) during a fixed or discounted period, most lenders charge an ERC. This is typically 1% to 5% of the outstanding balance and decreases each year of the deal. On a £200,000 mortgage, a 3% ERC is £6,000. Always check the ERC terms before committing to a product, especially if there is any chance you may move or remortgage before the deal ends.
Higher Lending Charge
Some lenders charge a higher lending charge (or mortgage indemnity premium) on high-LTV mortgages (typically above 90%). This insures the lender (not you) against loss if you default. It can add £500 to £1,500 to your costs. Many lenders have abolished this charge, but check before applying.
Exit/Redemption Fee
A small fee (£50–£300) charged when you fully repay or close your mortgage. This is separate from any early repayment charge.
Ongoing Costs After Purchase
Do not forget the costs that begin after you move in: buildings and contents insurance, council tax, utility setup fees, maintenance, and potentially service charges and ground rent for leasehold properties.
Related Guides
- How Much Deposit Do I Need? — deposit tiers and sources
- Mortgage Application Guide — the full process explained
- First-Time Buyer Checklist — step-by-step buying plan
- Mortgage Glossary — all mortgage terms defined