How much actually cost mortgages in the UK

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How much actually cost mortgages in the UK

The purchase of house in Great Britain could be viewed as an obstacle for many people. The average selling price paid by inhabitants of Great Britain for their own apartment is £321,192 (according to Zoopla services for all kinds of houses). The credit for a house in the UK is the only sensible solution because the following amount is far higher than the financial capability of average person

If you are likely to buy an apartment you need more cash than at least one monthly instalment of the mortgage The fundamental issue is to raise an amount of 5-10% value of property for your own contribution.

When it comes to Help to Buy Scheme program, 5% is enough and in the case of used house it is about 10%. The following amount increases even to value of 15% including the costs for the moving service, fees at offices, commission payable on lawyers, brokers or on the other minor storage.

However, there is no need to looking for the potential household or apartment without bearing the following amount of cash.

What are the costs of the mortgage in the UK?

I am pleased to present you an example of the average mortgage in Great Britain for house purchase of a nominal value of £200000 concluded for period of 25 years. Assuming that the interest rate is 4%, the monthly rate expected to swing to around £290000. The best option is to use widely available loan calculators. Open your browser, type: mortgage calculator

The more your own contribution is, the lower cost of mortgage is so that is worth to save money as of today and finally achieve this dream of buying your own home in the UK. Secondly, the creditworthiness is also very important.

The bank shall have the right, as its sole discretion to take a negative decision even though if our calculations show that our household budget with the mortgage rate will be enough to repay a credit rate.

To that purpose it is worth to find on Internet: the calculator of credit capability. The calculator helps you determine the approximate size of credit for what we decide. It is a good idea to take advantage of price comparison engine of mortgages in the UK.

Sometimes by using the services of a different bank, the final fixed amount can be reduced even a several thousand! This is phenomenon to choose the most favourable offer because the decision will concern you for the next 20-25 years.

The table below presents the costs of fees for credit broker.

Average mortgage fees
Value of property £100,000 £250,000 £350,000 £450,000 £800,000
Valuation £273 £386 £478 £536 £822
Arrangement feea £931 £956 £978 £998 £1,052
Moneyfacts data gathered on 9 December 2016.  aAssumes a 75% mortgage.

The table below presents the average costs for checking of the house:

Estimated survey costs
Value of property £100,000 £250,000 £350,000 £450,000 £800,000
HomeBuyer’s report £350 £500 £600 £700 £950
Building survey £500 £700 £800 £900 £1,300
Figures gathered from Correct as of March 2015

Of course, there is no way around without lawyers.

Below are presented the average costs in case of property solicitor

Estimated legal costs (including VAT)
Value of property £100,000 £250,000 £350,000 £450,000 £800,000
Conveyancing fees £625 £800 £910 £1,025 £1,250
Mortgage lender’s legal fee £170 £170 £170 £170 £170
Searches £300 £300 £300 £300 £300
Money transfer £45 £45 £45 £45 £45
Land Registry fee £40 £135 £135 £135 £270
Sub-total £1,180 £1,450 £1,560 £1,675 £2,035
Leasehold £325 £325 £325 £325 £325

And the last:  Stamp duty

Value of property £0 –125,000 £125,001 –£250,000 £250,001 –£925,000 £925,001 –£1,500,000 £1,500,000+
stamp duty 0% 2% 5% 10% 12%
Don’t forget that data is only averages and in your case it can be different from presented but it shows that the purchase of apartment is a considerable response. The Stamp rates may be not modified.

If you want to know about the real price of the house in the UK, below is a sample statement. The following statement concerns the properties with the price of £200,000.

  • Deposit (10%) £20,000
  • Booking fee £100
  • Arrangement fee £1,000
  • Survey fees £400
  • Transfer fee £35
  • Valuation fee £150
  • Stamp duty £1,500
  • Moving home £450
  • Solicitor’s fees £1,200
  • Broker or adviser’s fees £500
    Całkowity koszt to: £25,335

The tax on purchase of real estate

In Great Britain, if the value of property purchased by the buyer shall not exceed the sum of £125,000, the purchaser is exempted from the levy SDLT (Stamp Duty Land Tax). Naturally it concerns the residential properties. In the case of non-residential properties the amount is £150,000.

The tax should be paid by the buyer to the property so-called freehold and leasehold. (the values can change and that is what mostly happens – more about it you can find here:

kredyt na dom w UK jaka jest rzeczywista wartość kredytu na dom w UKHow to raise your own contribution?

Many people can’t deal with saving money. However it is not so hard. You need only to keep in mind all of the advantages that brings you that activity.

The first step is to raise amount of money for your own contribution and then opening and maintenance of saving account Free of charge in bank. Then it is necessary to systematically put aside the money there.

If you want to maximize the following amount, firstly it is important to sort monthly disbursements and plan where to invest the money obtained.

Find out how to save £1000 – More information in handbook about saving and earning money in the UK

There are also fees that we can’t save for example: cost of renting temporary accommodation but the utility and food charges can be reduced in a very simple way. You need also to be ready for some sacrifices.

Let go the leisure trip and other expensive pleasures. Thanks to it you will be able to monitor your expenses and that will make us more able to achieve the desired objective.

The optional advantage thanks to that is fast and easy learning of habits. We will be able to living modestly, what will make our life much easier in the future. The financial security is the best tool to achieve stability and feeling of protection.

The government helps you financially during of you first purchase of the property. Find out more about Help to Buy ISA  and Lifetime ISA.

How to search for a home in Great Britain?

The first thing you should do, as a person who is looking for house in the UK is to indicate clearly the requirements and the list of criteria drawn up about our residence.

You can provide the amount of rooms, information about residential area, district and style. I took only some of them. It is worth to take into advantage the neighbourhood of a good school, communication and safety in the nearby.

Sometimes the price of similar house can be higher but the localization is better and that is why we should know what we exactly need.

The best place for searching is Internet. You need to remember that some of offers are available for exclusive licensing and prices varies so we cannot be limited to only one portal. It is good to visit the agency of property which certainly has a few interesting offers to share..

If you’re serious about purchasing the property in the UK you need to necessarily read the following posts

  • The best place to live in England: Until you buy some house and until you even think about renting, you need to necessarily find out about that post. This saves you weeks of nervous incidents with neighbours.
  • Purchase of house in the UK: Post, which was submitted recently but you can find there a lot of useful information


The process of buying a house in Great Britain is not a complicated case. It is enough to learn of those few basic terms, get to know how to save money for your own contribution and take a mortgage for house in the UK.

Upon fulfilment of agreed steps, finishing the process of relocation and after renovations we can become the happy owners of our own apartment in the Islands.

The purchase of house in the UK is also a very good investment, considering that the prices of properties are steady in level and the house is expend with price of hundred thousand pounds.

It will be a really good securing the sustainability of finances for generations

I recommend a lot to watch two short videos prepared by which?

Cost of moving house: a guide from Which?

Buying a house: Which? answers your questions

NOTE: I present private opinions and I am not responsible for the readers’ decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.


Hey! Nazywam się Radek i na codzień ciężko pracuję w Anglii i myśl, że na emeryturę będę mógł przejść dopiero po 68 latach nie jest mi na rękę. Dlatego udowodnię, że jest to możliwe w wieku 55 lat a może i wcześniej. Zobacz na tym blogu jak chcę to osiągnąć.


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