Unexpected costs when buying your home
From valuation fees to insurance
As well as your monthly mortgage payments, there are other costs you'll need to cover when buying your home, such as valuation fees and insurance.
Our checklist is a starting point to see what else you might need to pay for, and you can use our budget calculator to see how this could impact your day to day finances.
Other costs to cover
During a valuation, the mortgage lender will assess the value of the property to establish how much they are prepared to lend you. The cost for this varies according to the lender and property value, but worth budgeting for between £250-£1,500.
Land Tax (also known as Stamp Duty)
Depending on the value and location of the property you're buying, you may have to pay Land Tax. You can find out more on the MoneyHelper website and use their online calculator to find out how much you'd have to pay.
Home insurance helps protect your home and belongings. It can cover repair or rebuild costs for damage from something like a fire, storm or flood. It can also cover the cost of replacing the things in your home if they're stolen, or repairing or replacing them if they're damaged.
While home insurance isn't mandatory for homeowners, some mortgage lenders may stipulate it as a requirement for a mortgage agreement.
The cost of home insurance can vary depending on many factors, some of which are the level of cover you opt for, the type of property you’re looking to insure and the location of where you live.
NatWest Home insurance is underwritten by U K Insurance Ltd.
Life insurance for mortgage customersIt is important to protect yourself and your loved ones, should the worst happen. Having life insurance could help you continue to take care of them at the time when you can no longer do so. Life insurance is provided by AIG Life Ltd.
A survey will help identify any problems with the property before you take the plunge and buy. Surveys range from a basic home condition survey costing around £250 to a full structural survey costing around £600 or more.
Learn more about the different types of surveys and costs.
A solicitor or licensed conveyancer will carry out all the legal work when buying and selling your home. Legal fees normally range from £850 to £1,500.
They can also check if there are any local plans or problems that might affect the value, particularly in the future. This could cost another £250 to £300.
Hiring a company to move your belongings usually costs between £300 and £1,200, but this will depend on the size of the property and if you want them to pack and/or unpack for you too.
You could save money by hiring a van and doing it yourself. Just arm yourself with boxes, tape, marker pens and some strong friends.
Make sure you're coveredCover your mortgage with life insurance. This pays out a lump sum that could be used to pay off your mortgage if the worst were to happen. Provided by AIG.
If you're buying a leasehold property, you'll need to pay a service charge (normally monthly) and ground rent. These are paid to the freeholder of the property.
There are also additional costs associated with the property purchase, such as a Notice of Charge that tells the freeholder you are buying it. Read more about leasehold properties and charges.