Beyond your deposit and the mortgage itself, there are several essential costs and fees that come with moving home in the UK. At IMC Mortgage Brokers, we believe in providing you with a clear, direct understanding of every potential outlay, so you can budget with confidence and avoid any surprises as you plan your move with a mortgage.

Here’s a detailed breakdown of the costs home movers typically face:

Planning for the cost of moving house with a mortgage

Stamp Duty Land Tax (SDLT)

Stamp Duty Land Tax (SDLT) is a government tax on residential property purchases in England and Northern Ireland (different systems apply in Scotland and Wales). It’s often one of the largest financial outlays after your deposit and mortgage. While having an existing mortgage doesn’t directly change the rates of SDLT, the overall cost impacts your total budget, which your mortgage affordability assessment will factor into.

As of April 1st, 2025, these rates apply if, after completing your purchase, this will be the only residential property you own and you are not eligible for First-Time Buyer relief:

Want to quickly estimate your potential Stamp Duty? Try our easy-to-use Residential Stamp Duty calculator.

Legal Fees (Conveyancing)

Conveyancing refers to the legal process of transferring ownership of a property from one person to another. When you’re moving home, you’ll typically need a solicitor or licensed conveyancer to handle the legal work for both the sale of your old property and the purchase of your new one. These legal experts also play a critical role in liaising with your mortgage lender, ensuring all legal requirements for the mortgage are met before funds are released.

These fees generally consist of two parts:

• Legal Fees: This is the solicitor’s professional charge for their time and expertise in handling all the legal work. This includes drawing up contracts, conducting property searches, liaising with the other party’s legal team and your mortgage lender, and managing the transfer of ownership.
• Disbursements: These are third-party costs that your solicitor pays on your behalf and then passes on to you. Common disbursements include:
  • Local Authority Searches: To check for planning permissions, building control issues, or environmental factors.
  • Land Registry Fees: To register the new ownership of the property.
  • Bankruptcy Search: A check to ensure the buyer isn’t bankrupt.
  • Anti-Money Laundering (AML) Checks: To verify identities and the source of funds.
  • Bank Transfer Fees: For securely sending large sums of money, including your mortgage funds, from the lender to the seller’s solicitor via your own solicitor.

Legal fees can vary significantly based on the property’s value, whether it’s freehold or leasehold (leasehold properties generally incur higher fees due to more complicated legal work), and the complexity of the transaction.

Mortgage-Related Fees

Beyond your monthly repayments, getting or adjusting a mortgage for your new home often involves specific fees:

• Mortgage Arrangement/Product Fees: These are charged by the lender for setting up your mortgage. They can range from a few hundred pounds to over a thousand pounds. You often have the choice to pay this fee upfront or add it to your mortgage loan. If you add it to the loan, you’ll pay interest on it over the full term of your mortgage, increasing your overall cost.
• Mortgage Valuation Fee: While your mortgage lender will carry out their own basic valuation to ensure the property is worth the loan amount, you might have to pay a fee for this. This valuation is for the lender’s benefit, not a detailed survey of the property’s condition. Some lenders offer this for free as part of their mortgage deals.
• Telegraphic Transfer Fee (or CHAPS fee): This is a small fee charged by your solicitor for the electronic transfer of your mortgage funds from the lender to the seller’s solicitor on completion day. It ensures the funds arrive quickly and securely.
• Early Repayment Charges (ERCs): If you’re breaking out of an existing mortgage deal (e.g., fixed or tracker) to take a new one, your current lender might charge an Early Repayment Charge. This is often a percentage of the outstanding loan balance. Your mortgage broker will always check if porting your existing mortgage could help you avoid these fees, or advise on the cost-effectiveness of paying them to secure a better new deal.
• Mortgage Exit Fee: A small administrative fee charged by some lenders when you fully repay or switch away from a mortgage, often at the very end of the term.

Surveyor Fees

While your mortgage lender will typically arrange a basic mortgage valuation to ensure the property is worth the loan amount, this is not a detailed survey of the property’s condition. It’s solely for the lender’s benefit.

To get a clear picture of your prospective new home’s structural integrity and identify any hidden issues, you’ll need to commission a property survey. This is highly recommended to protect your investment, especially when taking on a significant mortgage. There are different levels of surveys available:

• RICS Home Survey Level 1 (formerly Condition Report): A basic “traffic light” rating of the property’s condition, highlighting urgent issues. Best for newer, standard-build homes in good condition.
• RICS Home Survey Level 2 (formerly HomeBuyer Report): A more detailed inspection suitable for conventional properties in reasonable condition. It provides an assessment of the property’s condition, identifies significant defects, and often includes advice on repairs and maintenance. You could typically choose this with or without a valuation.
• RICS Home Survey Level 3 (formerly Building Survey/Full Structural Survey): This is the most comprehensive survey, offering an in-depth analysis of the property’s structure and condition. It’s highly recommended for older properties (50+ years), listed buildings, properties of unusual construction, or those in poor condition, and could include estimates for repair costs.

The cost of a survey will depend on the type of survey, the size and value of the property, and its location. While an added expense, a good survey could save you significant money in the long run by uncovering potential issues before you commit to your new mortgage.

Mortgage Broker Fees

At IMC Mortgage Brokers, we believe in fair and transparent dealings. The way a mortgage broker charges for their services can vary across the industry; some charge a direct fee to the client, some receive a commission from the lender, and some use a combination. Before proceeding with any mortgage advice or work that incurs a fee, we will always clearly outline our specific fee structure to you and obtain your agreement. This ensures that there are no hidden surprises. Choosing a broker could potentially save you time, stress, and money over the long term by helping you access a wider range of deals and expertly navigating the complexities of the mortgage market.

Estate Agent Fees

If you’re selling your current property to facilitate your new mortgage and purchase, you’ll likely incur estate agent fees. These are typically charged as a percentage of your property’s final sale price (plus VAT).

Common fee structures include:

• Sole Agency: You instruct only one estate agent to sell your property. This usually results in a lower percentage fee (e.g., 1.2% – 1.8% including VAT) because the agent has an exclusive period to find a buyer. If you find a buyer yourself during this period, you might still owe the agent a fee, so always check your contract.
• Multi-Agency: You instruct two or more estate agents to sell your property. The fees are typically higher (e.g., 3% – 3.6% including VAT) because only the agent who successfully sells your property earns the commission, meaning less certainty for each individual agent.
• Fixed Fees: Some online estate agents offer a fixed fee, usually paid upfront, regardless of whether your property sells. While this could seem cheaper, it means you pay even if the sale falls through.

Always compare different agents’ fees, what’s included in their service (e.g., photography, online listings, viewings management), and scrutinise the terms of their contract before committing.

Removal Costs

The cost of moving your belongings will vary significantly based on several factors:

• Volume of items: A larger home with more possessions will naturally cost more to move.
• Distance of the move: A local move will be cheaper than a cross-country relocation.
• Accessibility: If there are many stairs, long walks from the property to the vehicle, or parking restrictions, costs could increase.
• Packing services: Most removal companies offer optional packing and unpacking services, which add convenience but also add to the cost.
• Insurance: While most policies offer basic cover, you might want additional insurance for high-value or fragile items.
• Timing: Moving on weekdays or during off-peak seasons (outside of school holidays) could sometimes be cheaper than weekends or peak times.

You could opt to hire a van and do it yourself to save money, but for larger moves, a professional removal company often provides invaluable peace of mind.

Other moving day costs

Don’t forget to budget for these smaller, but important, costs that arise whether you have a mortgage or not:

• Postal redirection: Setting up mail redirection with Royal Mail to your new address.
• Utility connections/disconnections: Final bills for your old property and setting up accounts for gas, electricity, water, and broadband at your new one.
• Cleaning: Professional cleaning services for your old home or initial cleaning for your new one.
• New locks: For security, many movers choose to change the locks on their new property.
• Contents insurance: Ensure your new home’s contents are insured from the day you move in. Buildings insurance is typically required by your mortgage lender from exchange of contracts.
• Storage: If there’s a gap between moving out and moving in, you might need temporary storage.

Budgeting tips: Create your moving cost spreadsheet

To stay on top of all these expenses, especially when planning your new mortgage and overall move, we strongly recommend creating a detailed moving cost spreadsheet. This will help you:

• Track everything: List every potential cost you’ve identified.
• Get quotes: Fill in estimated costs based on quotes from solicitors, surveyors, estate agents, and removal companies.
• Monitor spending: Keep track of actual expenditures as you go.
• Identify savings: See where you might be able to negotiate or cut back.

Being proactive with your budgeting will empower you to manage your finances effectively throughout your home moving journey.

Ready to get a clear picture of your mortgage options alongside these costs? Contact IMC Mortgage Brokers today for a free, no-obligation consultation. We’re here to help you navigate your move with confidence.