What do you have to pay and when?

DLi Mortgages
Aug 19
3 min read

Cost of moving timeline

Buying a home isn’t cheap, and it can be tricky to know what you’ll need to pay and at which stage. To help you budget, this guide explains the main costs involved and when they typically become due.

Before you have an offer accepted

You shouldn’t have to pay anything while you’re still house-hunting. Mortgage brokers generally offer the initial consultation and arrange a Decision in Principle free of charge.

If you’re selling your current home, check whether your chosen estate agent has any upfront fees. Many only charge on completion, but it’s worth asking during the valuation so you fully understand their charging structure.

Once you have an offer accepted

Once your offer is accepted, some costs will start to come in.

Broker fee: Your mortgage and protection broker may request their advice fee on application or on mortgage offer. This should have been outlined during your initial meeting.
Solicitor: You’ll need to instruct a solicitor, who will provide a cost estimate for the legal work. They will likely ask for some money on account (a few hundred pounds) to cover initial expenses such as local searches.
Survey: You’ll also pay your surveyor at this stage. Costs vary depending on the level of detail, from around £400 to £1,200+ for older or more complex properties.

Estimated total due: £1,000 – £2,000+

Mortgage offer stage

Your mortgage offer and protection policies are usually finalised around the same time.

It’s often wise to start an Income Protection policy now, as it isn’t directly tied to your house purchase. This means if you develop a health issue before completion, you’ll already be covered.

Estimated total due: Income Protection premiums can range from £10 - £100+ per month, depending on your age, medical history, profession, salary, benefit period and other factors.

Exchange of contracts

At exchange, you’ll pay your deposit to your solicitor, who will transfer it to the seller’s solicitor. The standard is 10% of the purchase price, although if your total deposit is smaller, your solicitor may have already negotiated a reduced amount.

You’ll also likely pay any Stamp Duty due at this point.

As you are now legally committed to the purchase, you should have:

Buildings and contents insurance in place (approximately £25 - £40 per month).
Any mortgage-linked life insurance active.

Estimated total due: Deposit, possibly Stamp Duty, plus £50 - £100+ per month for insurances.

Completion

Congratulations, you now officially own your new home!

If not already paid, your solicitor will invoice you for Stamp Duty and the remaining legal fees.

You’ll also now be responsible for moving and running costs, including:

Removal van or moving service
New carpets, furniture, or DIY costs
Council tax
Utilities (gas, electric, water)
Telephone/internet
TV licence and subscriptions
Service charges/ground rent (if applicable)

Tip: On moving day, find your utility meters and take readings so you’re only billed for what you’ve used.

First mortgage payment

Your first payment date will depend on your preferred direct debit date (chosen during the application) and your completion date. Your lender will confirm the schedule after you move in – no payment should be taken before you’ve had this confirmation.

Mortgage payments are taken in arrears, so:

If you move in mid-September, your first payment may not be until November.
This payment will be larger, as it will include interest for part of September plus your full October payment.

Example:

Monthly repayment: £1,055.67 (£666.67 of which is interest)
Completion: 15th September
First payment: 1st November = £333.34 (half of September’s interest as you moved in halfway through the month) + £1,055.67 (October payment) = £1,389.01

Your home may be repossessed if you do not keep up repayments on your mortgage.

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