The Cost of Buying a House

Deposit

A deposit is the amount of money you contribute towards the purchase price of a property. Most buyers will need a deposit of between 5% and 20%, depending on the mortgage product and lender criteria.

95% mortgages (5% deposit) have become more widely available again in Northern Ireland, although lending criteria is usually stricter at higher loan-to-value levels.

Stamp Duty (Stamp Duty Land Tax)

Stamp Duty Land Tax (SDLT) may be payable when buying a property, depending on the purchase price and whether you are a first-time buyer.

First-time buyer relief is currently available, meaning:

• No SDLT payable on properties up to £425,000
• 5% SDLT payable on the portion from £425,001 to £625,000

You’re eligible for this relief if you — and anyone you’re buying with — have never owned a property before. If the purchase price exceeds £625,000, standard rates apply.

Stamp duty rules can change. The above rates are correct as of February 2023.

Valuation fees

Before offering a mortgage, your lender will require a valuation to confirm the property is worth the amount being paid.

• Typical valuation costs range from £150 to £1,500
• The cost depends on the property value and type

Some mortgage products include a free valuation, but these may not always offer the lowest interest rates. A broker can help you compare the overall cost.

Legal fees and conveyancing

You’ll need a solicitor or conveyancer to handle the legal side of buying a property. This includes title checks, local searches, and transferring ownership.

• Local searches typically cost around £300
• Total legal fees often range from £1,000 to £1,500

Fees vary between firms, so it’s worth comparing quotes rather than assuming prices are fixed.

Mortgage fees

Some mortgage brokers charge a fee for arranging a mortgage, which can be £500 or more. Others are paid directly by the lender.

We do not charge a fee for our mortgage advice. Our role is to help you find a suitable mortgage and guide you through the process without additional cost.

Decorating and furnishing

Once you get the keys, additional costs often follow quickly. Decorating, furniture, appliances, and small repairs can add up faster than expected.

• Painting and decorating
• Furniture and white goods
• Minor repairs or improvements

These costs can easily run into the thousands, so it’s important not to use every penny of savings as your deposit.

Insurance

Most lenders require buildings insurance to be in place before completion. This protects the property against risks such as fire, flooding, and subsidence.

You may also wish to consider:

• Contents insurance for your belongings
• Life insurance to repay the mortgage if you die
• Income protection to help cover payments if you’re unable to work

Council tax (rates)

Council tax — known as rates in Northern Ireland — is often overlooked by first-time buyers. The amount payable depends on the property’s value and location.

Monthly rates can often exceed £100 per month, so it’s important to confirm the cost before completing your purchase.

Running costs

Day-to-day household costs can add up to a significant monthly expense and should be factored into your overall budget.

• Gas, electricity, oil or other heating
• Water and sewerage charges
• Internet, TV licence, and media packages
• General household maintenance

In some cases, running costs can be similar to — or higher than — mortgage repayments, particularly in larger or less energy-efficient homes.

Planning ahead makes buying easier

Understanding the full cost of buying a house puts you in a stronger position. It helps avoid financial strain and makes your mortgage more sustainable in the long term.

If you’d like help reviewing your budget or understanding how these costs affect what you can borrow, we’re happy to guide you with clear, no-obligation advice.