The Hidden Costs of Buying a Home and How to Budget for Them
Buying a home? At Property Connections, we understand it can be overwhelming, especially with unexpected costs. Our guide breaks down the hidden expenses of UK home buying, explains their importance, and offers practical budgeting tips to keep you prepared. Don't let surprise fees catch you off guard & plan ahead with our expert advice.
Buying a home is one of the most exciting and expensive milestones in life. For most people, it’s not just a property purchase but the start of a new chapter. Whether you're a first-time buyer or moving up the property ladder, it's easy to focus on the big-ticket costs like the deposit and mortgage repayments while overlooking the many additional expenses that come with buying a home.
At Property Connections, we work with buyers every day and understand how overwhelming the process can feel, especially when unexpected costs begin to add up. That’s why we’ve created this guide to help you prepare and budget properly -
1 - Mortgage Fees
Even before you move into your new home, securing your mortgage often comes with a few charges. These costs can vary depending on the lender and the type of mortgage product you choose. Common mortgage-related costs include:
- Arrangement Fee: This is a fee your lender charges to set up the mortgage. It can range from a few hundred to over a thousand pounds, and in some cases, it's added to the mortgage balance.
- Booking Fee: Some lenders charge a booking or application fee (typically around £100–£250) just for applying for a specific mortgage product.
Budget Tip: Ask your mortgage adviser or lender for a full breakdown of fees before committing. Also, consider whether it's worth paying more upfront for a better interest rate over time.
2 - Legal Fees
Hiring a solicitor or licensed conveyancer is essential for handling the legal aspects of the property transaction. Their responsibilities include conducting local authority searches, reviewing contracts, handling the transfer of funds, and registering the property in your name.
Legal fees typically range from £800 to £1,500, depending on the complexity of the sale and the price of the property. Additional costs may apply for leasehold properties, more detailed searches, or additional legal work.
Budget Tip: Get a clear, itemised quote from your solicitor in advance, and make sure it includes all standard disbursements.
3 - Insurance Costs
When buying a home, you’ll need at least buildings insurance in place from the date of exchange, as required by most mortgage lenders. This protects the structure of your home against damage from fire, floods, or other events.
You may also want to consider:
- Contents Insurance: Protects your belongings
- Life Insurance or Mortgage Protection Insurance: Helps cover repayments in the event of illness or death
- Income Protection Insurance: Useful if you’re self-employed or rely on a single income
Budget Tip: Shop around for insurance quotes and consider bundling buildings and contents cover to save money.
4 - Moving Costs
The logistics of physically moving can add up quickly—especially if you’re hiring professionals or moving long distance.
Typical moving expenses:
- Professional removal service: £300–£1,500+
- Van hire (DIY): £100–£300
- Packing materials: £50–£150
- Temporary storage (if needed): £20–£50+ per week
Budget Tip: Compare quotes from removal companies well in advance and consider off-peak moving days (like weekdays) to reduce costs.
5- Initial Set up & Utilities
Once you’ve moved in, the initial setup costs for your home can catch you by surprise. These include:
- Connecting or switching utility providers
- Council Tax setup (if not pre-paid by seller)
- Broadband installation or activation
- Buying or replacing appliances or furniture
While these may not seem major individually, they can quickly add hundreds or even thousands of pounds to your budget, especially if your previous home was rented and furnished.
Budget Tip: Start with a basic inventory of what you’ll need in the new home, and prioritise essentials. Spread out non-urgent purchases over time to avoid overspending.
6 - Furnishing & Decorating
Many buyers overlook the cost of turning their new house into a home. From curtains and rugs to sofas and wardrobes, furnishing even a small property can be surprisingly expensive.
Start with the essentials and take your time building out each room. Focus on quality for long-term items like beds or appliances, and consider second-hand or upcycled pieces for non-essentials.
Budget Tip: Budget an additional 5–10% of the property price for furnishing if you’re starting from scratch.
7 - Maintenance & Repairs
Once the home is yours, any repairs or upgrades become your responsibility. Even a well-maintained property can have minor issues that require attention soon after you move in.
Common post-purchase costs include:
- Plumbing or electrical fixes
- Painting and decorating
- Replacing fixtures or fittings
- Garden maintenance or landscaping
Budget Tip: Set aside a contingency fund so aim for at least £1,000–£2,000 to cover unexpected post-move repairs or improvements.
Final Thoughts: How to Budget Effectively
The best way to manage the hidden costs of buying a home is to plan ahead and build a realistic budget. Start by writing down every potential cost, from mortgage fees to moving day extras and overestimate where possible. Many buyers find themselves stretched thin because they only budget for the deposit and monthly mortgage payments.
Speak to your mortgage adviser, estate agent, and solicitor early on to understand the full financial picture. At Property Connections, we’re always happy to walk you through the process and help you prepare for a smooth, confident purchase.
Thinking about buying a home?
We’d love to help. Whether you’re a first-time buyer or planning your next move, our team is here to guide you from viewing to completion—with expert advice at every stage.
📞 Call us on 01596 650 550 or 📧 Email info@propertyconnections.com to chat with Team PC today!