In brief
- Deposit: typically 5–25% of purchase price, transferred at completion.
- SDLT / LBTT / LTT: calculated on purchase price, paid at completion via your solicitor.
- Solicitor/conveyancer fees: £800–£1,800 base, plus £300–£700 disbursements.
- Survey: £400–£1,500 depending on type; paid before completion, non-refundable.
- Mortgage fees: £0–£2,000 arrangement fee, £100–£250 booking, £150–£500 valuation.
- Contingency: minimum £2,000–£5,000 above calculated completion total.
Definition in plain English
Buying a house in the UK involves costs at multiple stages — from the first mortgage application through to after completion. Many buyers track the deposit and forget the rest. This guide lists every cost in sequence so you can build a complete cash plan before making an offer.
Context
A comprehensive checklist prevents the two most common mid-transaction surprises: running out of cash at completion because of an overlooked fee, and being unable to exchange because funds have not been cleared in time.
Use the calculator for this topic
Run multiple price points and buyer types before setting your final offer ceiling. Keep all assumptions visible in one place so comparisons stay honest.
Worked examples (home mover, typical fees)
Before you make an offer
Mortgage in principle (Decision in Principle / DIP): free to obtain from most lenders or via a broker. Not a firm offer but required by most estate agents before they take an offer seriously. Check that applying does not leave a hard footprint on your credit file — most DIPs use a soft search.
Budget calculation: run the full purchase cost using this calculator — deposit, SDLT, legal fees, survey, mortgage fees, contingency. Set your maximum offer price based on total upfront cash available, not just deposit.
Solicitor instruction: instruct early, ideally before or immediately after your offer is accepted. Get three quotes including disbursements. Confirm the firm's experience with your property type (leasehold, new build, etc.).
After offer accepted — before exchange
Survey (£400–£1,500): commission your own survey within days of offer acceptance. This is separate from the lender's valuation. Use the results to negotiate if defects are found. Non-refundable if the purchase falls through.
Mortgage application (£100–£250 booking fee): submit the full application with supporting documents — 3 months payslips, 3 months bank statements, P60, ID. The lender will instruct a valuation (£150–£500, usually charged separately or included in the product).
Conveyancing searches: your solicitor orders local authority, drainage and environmental searches (£200–£500 total) on your behalf. These take 1–6 weeks depending on the local authority and are non-refundable if the purchase falls through.
Proof of funds and source of deposit: your solicitor will request evidence that your deposit funds are legitimate and traceable (bank statements, gifted deposit letters, sale completion statements). Gather these early — delays in providing evidence delay exchange.
At exchange and completion
Exchange deposit (usually 10% of purchase price): at exchange, you pay a deposit — typically 10% — to the seller's solicitor. This locks both parties into the transaction. If you withdraw after exchange without legal cause, you lose the deposit. If the seller withdraws, you are entitled to it back and may have grounds to claim further loss.
Completion funds: on completion day, your solicitor will transfer the balance of the purchase price (90% if you paid a 10% deposit at exchange, less your mortgage advance) plus SDLT, Land Registry fees, and the solicitor's balance of fees to the relevant accounts. You must have transferred all funds to your solicitor in advance — typically 24–48 hours before completion.
Buildings insurance: must be in place from exchange (not completion). You are at risk the moment contracts are exchanged. If you use a mortgage, your lender will require evidence of buildings cover. Contents insurance is not required by lenders but is advisable.
Decision framework used by careful buyers
Start with an offer ceiling based on total cash, not headline house price. In practice, buyers who only track deposit and mortgage payments can miss the transaction-cost layer, which is exactly where completions become stressful.
Use a three-pass approach: first estimate tax by nation and buyer type, then add realistic fees, then pressure-test the result by increasing the offer by £10,000 and £25,000. This shows how sensitive your budget is before bidding.
Treat the model as a planning instrument. Final legal liability always sits with official calculators and your conveyancer’s completion statement, but early visibility reduces avoidable surprises.
Practical checklist before making an offer
Confirm your likely buyer status first (home mover, first-time buyer, or additional property). Switching status can alter tax materially at the same price point, so this should be fixed before negotiating.
Collect at least two conveyancing quotes and check what is included. Buyers often compare legal fees without checking disbursements, search packages, leasehold supplements or transfer fees.
Keep a contingency buffer instead of budgeting to the exact minimum. A modest reserve can protect timelines when valuation, legal or lender admin costs move late in the process.
Execution checklist that reduces surprises
Use a single source of truth for assumptions, quotes, and deadlines. Fragmented planning across messages and notes causes avoidable misses.
Review your assumptions after every material change in price, lender terms or legal status.
Check your completion budget at least twice before exchange so you are not relying on stale numbers.
Frequently asked questions
What are the main costs when buying a house?
The main costs are: deposit (5–25% of price), SDLT/LBTT/LTT (transaction tax — varies by price, buyer type and nation), solicitor fees (£1,200–£2,500 all-in), survey (£400–£1,500), mortgage fees (£0–£2,500), and a contingency buffer (£2,000–£5,000). Total non-deposit costs for a standard purchase of £300,000 typically run £6,000–£12,000 depending on buyer type and fee choices.
When does the deposit have to be paid?
The main deposit is paid at exchange of contracts. Exchange typically happens 1–4 weeks before completion. You pay the agreed exchange deposit (usually 10% of the purchase price) to your solicitor, who transfers it to the seller's solicitor. The remaining 90% of the purchase price is transferred on completion day.
What happens if the purchase falls through after exchange?
If you withdraw after exchange without legal grounds (such as the seller breaching their obligations), you lose the exchange deposit and may be sued for further losses by the seller. If the seller withdraws, you get the deposit back and may claim additional damages. Exchange creates a legally binding contract — withdrawing after exchange is rare and costly.
Do I need buildings insurance from exchange or completion?
From exchange. Once you exchange contracts, you are legally committed to purchasing the property and bear the risk of damage to it. Mortgage lenders also require buildings insurance to be in place from exchange. Arrange cover before exchange day and confirm the policy start date aligns with exchange.
What costs are non-refundable if the purchase falls through?
Survey fees, conveyancing search fees, mortgage booking fees, and the lender's valuation fee are typically non-refundable if a purchase does not proceed, regardless of which party withdraws. Solicitor fees depend on the firm — many operate a 'no completion, no fee' policy for their own charges, but disbursements paid to third parties (including searches) are generally not refundable.
How much contingency should I keep above the calculated total?
A minimum of £2,000–£5,000 above your projected completion total. Common contingency events include: a mortgage re-application after a down-valuation; survey-identified repairs you choose to fund; a delayed completion requiring a mortgage offer extension; or emergency fund needs in the weeks after completion. Cutting reserves to exact minimum leaves no margin for any of these.
Is there a standard order in which to instruct solicitors and brokers?
Most buyers instruct a mortgage broker before making offers, to understand borrowing capacity and secure a Decision in Principle. Solicitors should be instructed as soon as an offer is accepted — sometimes even before, so you can act immediately. The survey should be ordered within days of offer acceptance. Starting these processes quickly reduces the risk of the chain moving faster than your professional team.
References
- GOV.UK: Stamp Duty Land Tax — Primary SDLT rates and process guidance.
- Revenue Scotland: LBTT — Official LBTT rates and ADS information.
- Welsh Revenue Authority: LTT — Official LTT rates and higher-rate guidance.
For methodology and editorial policy, see Methodology and Editorial standards.