Mortgage fees

Some providers will charge a booking fee which is effectively a down payment to secure your mortgage deal. This is typically £99 for most lenders.

There might also be a mortgage arrangement fee to cover the ongoing administration of setting up the mortgage. This can cost anything up to £2,000 and will depend on the lender and other factors such as the interest rate you have been offered.

Your mortgage lender will want to value your new home to make sure that you are not paying too much for the property. The valuation fee can vary between £150 and £1,500 depending on the mortgage lender and the value of the property.

Some mortgage lenders might ask you to pay an extra fee if the amount that you are borrowing is close to the total value of the property. This is usually around 1.5% of the mortgage value.

As mortgages are complex, you might decide to get guidance from a mortgage adviser (or financial adviser) – although this is optional. The cost of an adviser can differ quite a bit. Some don’t charge you directly on the basis that they receive commission from the mortgage lender, whereas other advisers might charge anything upwards of a few hundred pounds.

When you buy a home you will need a solicitor to look after the administration and legal side of your property purchase. The cost can vary and is typically between £850-£1,500 (including VAT) – and will often include added fees such as the Land Registry fee for registering your new property into your name.

The Government imposes a tax – known as stamp duty – on the purchase of any property over the value of £125,000. Stamp duty applies in different rates depending on the total purchase price of the property, you can find out more at gov.uk

If you are a first time buyer then you don’t pay stamp duty on purchases up to £300,000 subject to a maximum purchase of £500,000. This means that if you purchase a property for £500,000, stamp duty will only be payable on the £200,000 (£500,000-£300,000).

To ensure that there are no issues (or plans) in the local area that could impact the value of your new home, your solicitor will commission property searches on your behalf. The cost of the basic search is around £300. You can also ask for more in-depth searches to cover a number of potential issues, which will come at an additional cost. Your solicitor's quote may well include these search fees so it is worth checking.

The last thing you want when you move into a new home is to find out there is some sort of structural problem with the property. As a homebuyer you should consider getting a survey done on your new home. A surveyor will come and do tests on the property to make sure everything is sound and that there are no potential issues – and report their findings. The cost of a survey varies and starts around £250 upwards depending on how comprehensive you want your report to be.

The chances are that you will have existing possessions to move into your new home. Unless you can cram everything into the back of your car, then you will likely need some help. Removal costs can start at around £300 and run into the thousands – and it depends on factors such as the distance you are moving to the quantity of possessions you need to move.

There’s no place quite like your home and when you’ve spent time and money creating a safe haven for you and your family, the last thing you need is to worry about not being prepared for the unexpected. A fire, burst pipe or burglary can leave a trail of damage and could cost you money to repair or replace. Your home could be at risk if you lose your income, or the ability to work through ill health for example.

You can take out relevant insurances to protect yourself against worst-case-scenarios. Common types of insurance related to home buying include life cover, critical illness cover, income protection and buildings and contents insurance.

You need to take out buildings insurance which is often mandatory when you own a property. You will likely also want to take out contents insurance and the two can usually be taken out with the same provider for a discount.

In terms of the purchase itself, some people also take out ‘buyer’s protection insurance’ which could protect you from potential issues such as a seller withdrawing from the deal, somebody ‘gazumping’ you, the valuation of the property falling in the process of the purchase, or changes in your employment circumstances. Buyer’s protection insurance typically lasts for three months from the date you submit your mortgage application.

If you haven’t already got one in place then you might also want to consider making a will. The fees for this can be anything from £150 upwards, depending on what you require.