Complete Guide to House Buying Costs in 2026

Buying a house involves more than just the asking price. Understanding all the costs involved helps you budget properly and avoid unexpected financial pressure. Here's everything you need to know about house buying costs in 2026.

Costs of buying a house in 2026 – At a glance

• Stamp duty: Budget from 0-15% of the purchase price, depending on price, whether you're a first-time buyer, and whether it's an additional property.

• Deposit: Typically at least 5–10% of the property value (e.g. £15,000-£30,000 on a £300,000 home). Bigger deposits can unlock better mortgage rates. However, it is possible to buy with no deposit.

• Conveyancing & legal fees: Allow up to £1,800 when buying, including solicitor fees and disbursements (searches, Land Registry fees, etc).

• Surveys & mortgage fees: Budget £300–£1,500 for a survey, up to £300 for a mortgage valuation, and up to £1,500 for mortgage arrangement fees (unless you choose a fee-free deal).

• Moving & protection costs: Factor in removals (£450–£1,400) and Home Buyer protection insurance (from £74).

• Ongoing ownership costs: Don't forget council tax, utilities, leasehold charges (if applicable), maintenance and repairs, plus furniture and redecorating once you move in.

Being aware of these costs is vital: Our HomeOwners Survey 2025 found more than a third (37%) of UK homeowners regret aspects of their purchase. This rises to 63% among 18–34-year-olds, whose biggest regret is underestimating costs (29%).

Breaking down the main costs

1. Deposit

Your deposit is usually the largest upfront cost. Most lenders require at least 5-10% of the property value, though larger deposits typically secure better interest rates.

Example: On a £300,000 property:

• 5% deposit = £15,000

• 10% deposit = £30,000

• 15% deposit = £45,000

Mortgage Tree can help you understand how different deposit sizes affect your mortgage options and monthly payments, helping you find the right balance between what you can afford upfront and your long-term costs.

2. Stamp Duty Land Tax (SDLT)

Stamp duty is a tax paid on property purchases. The amount depends on:

• The purchase price

• Whether you're a first-time buyer

• Whether it's an additional property

First-time buyers benefit from stamp duty relief on properties up to £425,000. For non-first-time buyers, stamp duty starts on properties over £250,000.

Additional properties (second homes or buy-to-let) incur a 5% surcharge on top of standard rates.

3. Conveyancing and legal fees

Conveyancing covers the legal work involved in transferring property ownership. Budget around £1,500-£1,800, which includes:

• Solicitor's fees

• Property searches (local authority, drainage, environmental)

• Land Registry fees

• Bank transfer fees

4. Surveys and valuations

Mortgage valuation (£0-£300): Your lender arranges this to confirm the property is worth what you're paying. Some lenders offer free valuations.

Homebuyer survey (£400-£900): A more detailed inspection highlighting potential issues.

Full structural survey (£600-£1,500): The most comprehensive option, recommended for older or unusual properties.

Mortgage Tree works with trusted surveyors and can guide you on which level of survey is appropriate for your property, potentially saving you from costly surprises down the line.

5. Mortgage arrangement fees

Many mortgages come with arrangement or product fees, typically £0-£1,500. Some lenders offer fee-free mortgages, though these may have slightly higher interest rates.

You can usually add the fee to your mortgage, but this means paying interest on it over the mortgage term.

Our advisors at Mortgage Tree help you compare the true cost of different mortgage deals, factoring in both fees and interest rates to find the most cost-effective option for your situation.

6. Moving costs

Removal companies typically charge £450-£1,400 depending on:

• Size of your property

• Distance of the move

• Amount of belongings

• Time of year (avoid peak summer months for better rates)

7. Home Buyer protection insurance

This insurance (from £74) covers your deposit and other costs if the purchase falls through due to circumstances beyond your control, such as the seller withdrawing.

8. Ongoing costs after purchase

Don't forget the regular costs of homeownership:

• Council tax: Varies by property band and location (£1,000-£3,000+ annually)

• Utilities: Gas, electricity, water (budget £100-£200+ monthly)

• Buildings insurance: Required by mortgage lenders (£200-£500+ annually)

• Contents insurance: Protects your belongings (£100-£300 annually)

• Ground rent & service charges: For leasehold properties (varies significantly)

• Maintenance and repairs: Budget 1% of property value annually

• Furniture and decorating: Can easily run into thousands

How Mortgage Tree helps you manage these costs

Buying a house involves juggling multiple expenses, and it's easy to underestimate the total. Mortgage Tree provides comprehensive guidance throughout your home buying journey:

• Accurate budgeting: We help you understand all upfront and ongoing costs so there are no nasty surprises

• Deposit strategies: Our advisors can show you how different deposit amounts affect your mortgage options and overall costs

• Fee comparison: We compare mortgages based on total cost, not just interest rates, ensuring arrangement fees don't catch you out

• Protection advice: We can recommend appropriate insurance products to protect your investment

• Lender relationships: Our connections with multiple lenders mean we can often access exclusive deals or fee-free mortgages

Top tips for managing house buying costs in 2026

1. Get a mortgage in principle early: This shows sellers you're serious and helps you understand your true budget

2. Shop around for conveyancing: Quotes can vary significantly between solicitors

3. Don't skip the survey: It could save you thousands in unexpected repairs

4. Budget for the unexpected: Add a 10% buffer to your calculations

5. Consider timing: Completion dates around the end of the month can sometimes reduce double-rent periods

Common mistakes to avoid

• Underestimating stamp duty: Use an online calculator to get accurate figures

• Forgetting ongoing costs: Your mortgage payment isn't your only monthly housing cost

• Choosing a mortgage based on fees alone: A higher fee might come with a better rate that saves you money long-term

• Not factoring in overlap costs: You may need to pay rent and mortgage simultaneously during the move

Ready to buy in 2026? Mortgage Tree's expert advisors provide fee-free guidance on all aspects of your home purchase. We'll help you understand the true cost of buying and find the best mortgage for your needs. Contact us today for a no-obligation consultation.