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Costs and fees

What fees will I need to pay?

Buying a house is one of the most significant financial decisions most people will make in their lives.  While owning a home can be a rewarding investment, it does also come with several costs.

Upfront fees - Upfront fees will consist of anything you need to pay as a one off, and if you haven’t budgeted for them, they can come as a bit of a surprise. Here’s some of the upfront costs you need to consider:

  • Product and arrangement fees - Some mortgages come with a product fee that can either be paid upfront or added to the cost of your mortgage. There’s often also an administration charge made by the lender for arranging the credit of your mortgage.
  • Mortgage adviser fee - This is a separate fee charged by the adviser for their specialist knowledge.
  • Legal fees - You’ll need to use a solicitor/conveyancer in order to complete on your mortgage. They deal with all the contracts, documentation, and searches amongst other things.

There are other additional costs that you may also need to be accounted for:

  • Stamp duty - As of September 2022, first-time buyers in England and Northern Ireland are exempt from paying stamp duty on properties costing up to £425,000. However, if your property costs between £425,001 and £625,000, you’ll have to pay 5% stamp duty - but only on the value above £425,000. Stamp duty thresholds and legislation apply in Wales and Scotland.