Working out your budget

Start with a rough calculation
Add the maximum mortgage you can realistically afford to any other capital and savings you can reliably access. Add to that, if you already own a home, the net profit from selling it, using an estate agent's valuation. Then deduct the estimated costs of conveyancing and moving. This is the rough price you can afford for a new home.

Fees, fees and yet more fees
Moving house is costly. You will need approximately 3% of the sale price to cover moving expenses. Don't forget VAT at 17.5% is payable on all commissions and fees. And, frustratingly, you may have to pay some of these fees more than once if your house purchase falls through.

Conveyancing fees
These vary depending on the amount of work necessary and the solicitor's rates, but expect to pay between 0.5% to 1% of the purchase price. See The Conveyancing Process for more on what all that legalese amounts to.

Land registry fee
This is payable on all house purchases and starts at £40 for a property up to £40,000, jumping to £200 for a property up to £200,000 to £300 for properties worth up to £500,000.

Local authority searches
Compulsory on all purchases. The money pays for information about planned developments in the area and local public services. Expect to pay between £60 and £100, depending on the area.

Lender's legal fee If your lender requires its own solicitors to act for it, instead of using your solicitor, you will be required to pay these fees in addition to your own. Check with your lender before you commit - and check out Before Choosing a Mortgage.
Valuation fee All lenders require a valuation before approving a mortgage. This is usually based on the property price, plus VAT. Allow around £250 for a £150,000 property.
Mortgage arrangement fee A flat fee payable on most fixed-rate mortgages.
Structural survey It's recommended that you commission a house-buyer's report or a full survey before you buy. This should highlight any structural problems, but currently only about 15% of housebuyers take this option. Allow for between £250 and £1,000, plus VAT.
Stamp duty Must be paid on properties costing more than £125,000, starting at 1% of the purchase price. You pay a higher proportion in stamp duty for more expensive houses.
Watch out If you're a first-time buyer, do you have a cash deposit? 10% of the purchase price is the standard. If you borrow above 90% of the property value you may have to pay a one-off mortgage indemnity guarantee to your lender - usually between 6% and 9% of the amount above the limit. But, as house prices rise and deposits become more difficult to find, many lenders are dropping this fee altogether. See Choosing a Mortgage to get an overview of your options.