How Much Does Buying a Property Cost?

Written By PropertyLoop
February 16, 2021

As online property agents we’ve found that buying a home often turns out to be far more expensive than most people budget for. That’s because as well as the ‘big’ costs, such as ongoing monthly mortgage payments, buying furniture and paying utility bills, there’s also an awful lot of little things to consider. 

And, when you sit down and count them up, these ‘small’ bills can add up to one huge sum. In this article we’ll list all possible costs that you’ll need to keep in mind when budgeting for buying and moving home. 

What Is a Mortgage Deposit?

The first big financial hurdle you’ll come across when buying a house is saving enough cash for the deposit. At this moment in time there really aren’t a lot of small Loan to Value mortgages around, meaning you’ll need to save up around 20 to 25 per cent of the property cost. That’s not a bad thing though – as you’ll find out later down the line. That’s because the bigger deposit you have, the less your monthly mortgage payments are.  

Arrangement Fees 

This is for setting up the mortgage and will usually be around £1000. Your solicitor (or conveyancer) too will want around 10 per cent of the cost of your property for putting through the transaction. Their job includes checking the contract is kosher, handling the transfer of money and title deeds with the Land Registry and ensuring there is no future property planning obstacles on the horizon. 

Cost of Mortgage Broker 

Using a mortgage broker to find you the best deal possible can cost too – around £200 to £250. This can, however, be added on to the cost of your mortgage. 

Survey Costs 

Certainly, it doesn’t make sense to buy a property without getting a survey done. Even a basic survey, known as a Home Condition Survey, can still provide a level of protection if anything goes wrong with the property in future. It may also give you a negotiating point with the seller is something is found to be wrong ie one wall may need a damp proofing course which would cost around £700 (so you ask the seller to drop the asking price of the house by £700. 

The mortgage company themselves will insist on getting a survey done to ensure the property is worth the value you say it is. The cost of this is around £250. 

The Home Buyers Report is a more detailed survey and comes in at around £400. And, finally, a building/structural survey is the most detailed, hence the price of £600. As online property agents we would always advise getting a structural survey done on an old property – certainly a Victorian or Georgian house. 

Buildings Insurance 

To protect yourself against structural damage to the fabric of the building, buildings insurance is a necessity. It can be from £100 to £200 depending on the property. You might also want to consider having your contents insured too. 

Stamp Duty 

If you buy right now and your property is valued at less than £500,001 then you won’t pay any Stamp Duty (in Scotland the value is £250,001). That’s because the government has introduced a Stamp Duty Holiday as a means of stimulating the property market after lockdown. However, this ‘holiday’ ends on March 31 so if you aren’t already in the process of buying you’d better put your skates on. Meanwhile in ‘normal’ times, Stamp Duty is only due in England if the property you are buying is worth more than £300,000. In Scotland that figure is  

£145,000 or £175,000 if you happen to be a first-time buyer.  Your online property agent can explain all this to you. 

Moving Costs 

Hiring a van can prove expensive if you’ve a lot of possessions to move. But it’s not nearly as expensive as going the whole hog and getting in a removal company. Expect to pay anything between £1000 to £1,500 for the latter. 

Need to sell your old property before you move? Then get in touch with our online property agents here at Property Loop today.  

Buying to Let  

Whether you are an experienced property investor or a new entrant, you will need some help with letting your property. There are thousands of letting agents across the country that claim to be the best, but you might want to consider our online end-to-end platform that helps the owners to find the right renters first. In fact, we believe that after listing your property on PropertyLoop, you wouldn’t need to see a traditional “brick and mortar” agent anymore. Our website takes care of advertising, remote viewing and receiving offers. Sign up today and see how much you can save.  

PropertyLoop is the world’s first commission free lettings platform. Our platform allows landlords to advertise their rental, reference tenants, curate an agreement, register the deposit and collect rent completely for free! There are no hidden charges, upfront fees or any catches.   

Built by experienced property investors and landlords, PropertyLoop connects renters with the owners directly. Your property is featured on all major search and comparison portals as well as advertised by PropertyLoop everywhere else on the Internet. You don’t have to worry about finding the good renters, that’s the job for the platform. Receive offers straight to your mailbox and select the renters that are right for your property. Need access to busy London property market? No problem at all! PropertyLoop is the London market specialist with years of experience and unique knowledge. Whatever your needs are, you can always speak to friendly support staff. Renting property is made as simple as one, two, three. 

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