Step 5 - Confirm Your Costs

You will need £3,000 - £10,000 worth of savings to cover the costs of buying.


  • The reservation fee – This is the £500 you pay to reserve your home. You’ll get this back when you buy your home.
  • The mortgage valuation fee – Your mortgage lender will arrange a valuation of your home. This costs around £250 - £350 but it may vary from lender to lender.
  • Mortgage arrangement fees – These vary from lender to lender but you should allow £400 - £500. Generally, the longer fixed interest rate, the higher the fee. These fees are not returnable.
  • Solicitors’ fees – Usually between £600 to £1,000. This will cover Land Registry fees and local search fees. This will not include stamp duty.
  • Stamp Duty Land Tax (SDLT)* – This is a government tax on buying a home. You do not have to pay stamp duty on homes costing less than £125,000. For homes above £125,001 stamp duty is payable. Please speak to your solicitor for advice on SDTL. Click here for more information.
  • Deposit – We’ll ask you for a deposit of £1,000 when you exchange contracts. Like the reservation fee, we take the deposit off the price of your home.

Understood your costs? Move on to Step 6, appointing your solicitor.