One of the most
common questions we hear from first-time buyers is:
“When do I
actually have to pay for everything when buying a house?”
Between deposits,
surveys, solicitor fees and stamp duty, there’s a lot to get organised.
To help you stay
ahead, we’ve broken down the key payments you’ll need to make during the
home-buying journey – what they are, when they’re due and why they matter.
1. Deposit
Your deposit is
typically paid on exchange of contracts. This is when the purchase
becomes legally binding and you’ll usually need to transfer between 5%
and 10% of the purchase price (or more, depending on your mortgage
deal).
- When you pay: on exchange of contracts
(typically seven to 28 days before completion).
- Tip: make sure your deposit funds are
in an accessible account, as you may need to transfer them quickly. Using
a Lifetime ISA (LISA) to save for a deposit? Let your conveyancer know as
soon as possible so they can start withdrawing funds in good time.
2. Conveyancing
fees (solicitor costs)
Your conveyancing
solicitor handles all the legal work involved in the property transaction.
Their fees are often paid in two parts:
- An initial payment when you first instruct them.
- The balance upon completion.
You’ll also need to
cover search fees and disbursements (such as Land Registry
checks) early on, as they’re needed for the legal process to progress.
- When you pay: part up-front, balance on
completion.
Get a breakdown of
the approximate costs involved in buying a house here.
3. Stamp Duty Land
Tax (SDLT)
Stamp Duty is paid on
completion day but your solicitor will usually collect this from
you in advance, ready to pay HMRC on your behalf.
- When you pay: collected before
completion, paid immediately after.
- Tip: first-time buyers in the UK
benefit from stamp duty relief up to a certain threshold – make sure you
know if you qualify.
4. Surveys
If you’re arranging a
survey (which we strongly recommend), the payment is made directly to the
surveyor before the survey takes place.
- When you pay: when booking the survey.
This would typically be after instructing your solicitor and before you
exchange contracts.
- Tip: there are different types of
surveys (valuation, homebuyer, structural) and each comes with a different
price tag. Your mortgage broker can advise you on what level of survey is
suitable for the property you’re buying.
5. Mortgage broker
fees and lender arrangement fees
If you’re using a
mortgage broker, they may charge a broker fee. This can either be:
- A flat fee (usually paid on application or offer),
or
- A commission paid by the lender (meaning no upfront
cost to you).
Similarly, some
mortgage products come with a lender arrangement fee. You can often
choose to pay this upfront on application or add it to your mortgage balance,
which means you’ll pay interest on it over time.
- When you pay: broker fees are typically
due after your offer has been accepted and your lender provides a mortgage
offer. Lender fees may be paid on acceptance of your mortgage or added to
your loan.
6. First mortgage
payment
Your first mortgage
payment is normally higher than your usual monthly payment, as it includes the
interest for the period between completion and your first official
payment date.
For example, if you
complete on the 10th of the month, your first payment might cover from the 10th
to the end of that month, plus the next full month’s payment.
- When you pay: usually one month after
completion.
- Tip: your lender will give you a
payment schedule once you’ve completed, so make sure you keep enough money
aside to cover more than a month of your mortgage repayments if necessary.
7. Buildings
insurance
You’ll need to have
buildings insurance in place from the date of exchange, as you
become legally responsible for the property at that point, even if you haven’t
moved in yet.
- When you pay: when your policy starts
on exchange of contracts.
- Tip: some mortgage lenders require
proof of insurance before they’ll release funds for completion. Make sure
you get this organised in advance of your exchange date and share details
with your mortgage broker and conveyancing solicitor.
8. Moving costs
Don’t forget the
practical side of moving! Whether you’re hiring professional removers, renting
a van, or roping in friends and family, there will be costs associated with the
move itself. This also includes storage, packing materials and utility
set-up costs.
- When you pay: on moving day or shortly
before.
Take the stress
out of budgeting
Now you know when
each payment is due, the next step is to get accurate quotes for all the
services you need, so you can get your finances organised.