Costs to consider Its more than the deposit

Stamp Duty Land Tax (known simply as 'Stamp duty' or 'SDLT') is a government tax that you have to pay when buying property over a certain price in England or Northern Ireland.

*Stamp duty costs are rising from 1st April 2025, understand how this will impact you.

Stamp duty rate bands
As of September 2022, buyers of homes that cost less than £250,000 don't pay stamp duty.

The standard rate bands for stamp duty in England and Northern Ireland are as follows:

0% up to £250,000 (up to £425,000 for first-time buyers)
5% above £250,000 and up to £925,000
10% above £925,000 and up to £1,500,000
12% above £1,500,000

First-time buyers
First-time buyers are exempt from Stamp duty on properties up to £425,000 and pay 5% on the portion between £425,001 and £625,000.

In other words, First Time Buyers who buy a property up to 625,000 will pay no Stamp duty on the first £425,000 and only pay 5% on the remaining amount.

There are several fees that you will need to pay as part of your house purchase:

Valuation fees

Your mortgage company will require a valuation survey to be carried out on your new home to make sure its worth the amount you want to borrow – this is likely to cost about £250.

Solicitor fees

Unless you are lucky and have a very good family friend who is a solicitor, you will need to pay for one.  They will carry out all the legal work that is involved in buying a new home and will charge around £1,000 for this.

Mortgage arrangement fees

These are fees charged by your bank for setting up a mortgage.  It’s usually an upfront cost, but can also be added to your mortgage repayments with interest and comes in around £2,500.

It’s not easy to predict what other costs may come up, as each house purchase is different, you may be charged fees for notice of mortgage, mortgage approval or a mortgage reservation fee.  Speak with your solicitor to gain an understanding of any extra costs.

Once you have the keys to your brand new home you will be committed to a number of ongoing monthly payments. Additional costs to consider are:

• Mortgage repayment

• Buildings and contents insurance

• Gas and electricity

• TV, broadband and phone

• Water

• Council tax

Let us help you find the home to fit within your budget - call us free on 0808 196 1532 or start your Persona journey here.