Buying a home is one of the most exciting steps you will ever take. It is also one of the most expensive, and not always in the ways people expect. Most buyers focus on saving for a deposit and securing a mortgage, which is completely understandable. What often catches people off guard are the additional costs sitting on top of the purchase price itself.
In 2026, with the property market moving again and mortgage rates settling into a more predictable pattern, more buyers are stepping forward with renewed confidence. But without a clear picture of the full cost of buying, even the most prepared buyer can face unwelcome surprises. This guide walks you through every significant cost you need to plan for, so you can move forward with complete confidence.
Key Takeaways
- Stamp Duty thresholds reverted in April 2025, meaning most buyers in 2026 are paying more than they were a year ago. Always calculate this cost before you start viewing properties.
- The costs of buying go well beyond your deposit. Conveyancing, surveys, mortgage fees and insurance all add up, so plan for the full picture from the outset.
- First time buyers still benefit from Stamp Duty relief, but it disappears entirely above a certain property value. Know where you stand before you make an offer.
- Many buying costs are negotiable or avoidable with the right advice. An independent broker helps you plan for every pound before you commit.
- Protection such as life insurance, critical illness cover and income protection is an essential part of homeownership and is best arranged alongside your mortgage.
Stamp Duty Land Tax in 2026: What Has Changed?
Stamp Duty Land Tax, commonly known as SDLT, is a tax paid to HMRC when you purchase a property in England or Northern Ireland above a certain value. It is one of the largest upfront costs in any property purchase, and the rules changed significantly in April 2025.
Up until that point, buyers benefited from temporarily raised thresholds introduced to stimulate the market. Those thresholds have now reverted, which means more buyers in 2026 are paying more Stamp Duty than they were a year ago.
For first time buyers, there is still a relief available, but it disappears entirely above a certain property value. If you are purchasing a second property or a buy to let, you will pay an additional surcharge on top of the standard rates across every band. This is a significant cost that landlords and investors must factor in from the very start of their planning.
Our advice is simple: work out your Stamp Duty liability before you start viewing properties. Knowing this figure upfront helps you budget accurately and avoids any shock at the point of offer.
Conveyancing Fees: The Legal Side of Moving Home
Conveyancing is the legal process of transferring property ownership from the seller to you. You will need a solicitor or licensed conveyancer to handle this, and their fees vary considerably depending on the complexity of the transaction and the firm you use.
On top of the legal fee itself, your solicitor will charge for disbursements, third party costs they pay on your behalf, such as Land Registry fees, local authority searches and environmental checks. Leasehold properties, new builds or anything with legal complications will typically cost more than a standard freehold purchase.
One thing worth knowing: if a sale falls through before completion, you will still owe your solicitor for work completed to that point. Speak to our team if you want guidance on managing this risk as part of your buying plan.
Property Surveys: Do Not Skip This One
A mortgage valuation carried out by your lender is not a survey. It simply tells the lender that the property is adequate security for the loan. It tells you very little about the actual condition of the building.
Investing in an independent survey is one of the wisest decisions a buyer can make. It regularly uncovers issues such as damp, structural movement or roof problems that could cost significantly more to put right after you move in. Knowing about these before you exchange contracts gives you the power to renegotiate the price or walk away without losing your deposit.
Mortgage Arrangement and Product Fees
Many mortgage deals come with an arrangement fee, sometimes called a product fee or booking fee, charged by the lender for access to a particular mortgage product. You can often add this to the mortgage rather than paying it upfront, though doing so means you will pay interest on it for the life of the loan.
As a whole of market broker, we compare the total cost of a mortgage across its full term rather than just the headline rate, ensuring you are getting the right deal for your circumstances. See our mortgage services to understand what we look at on your behalf.
The Costs That Buyers Most Often Forget
Beyond the big ticket items, a collection of smaller costs quickly adds up. Removal costs, buildings insurance, which must be in place from the date you exchange contracts, and contents insurance all need to be planned for.
If you are purchasing a leasehold property, there may be ground rent, service charges and potentially a share of freehold purchase to consider. New builds sometimes come with reservation fees and management company charges worth scrutinising carefully before you commit.
Protecting Yourself and Your Home from Day One
One of the most overlooked aspects of buying a home is making sure you are protected if the unexpected happens. Life insurance, critical illness cover and income protection are not just products to think about after you move in. They are essential parts of responsible homeownership and are best arranged alongside your mortgage so everything is in place from the day you complete.
At Kings Gate Finance, we take the time to understand your full financial picture and make sure any protection we recommend is genuinely right for you.
Why Working with a Whole of Market Broker Makes the Difference
Having an experienced, independent broker by your side means every decision is informed, every cost is anticipated and every deal is compared across the whole market. At Kings Gate Finance, we have been helping buyers, movers and landlords across Berkshire, Hampshire and Kent since 2012.
If you are planning to buy in 2026, now is the time to start the conversation. Book your free initial consultation and let us help you plan every step with complete confidence.
Frequently Asked Questions(FAQ)
- How much Stamp Duty will I pay as a first time buyer in 2026?
Ans: First time buyers in England still benefit from Stamp Duty relief in 2026. You pay no Stamp Duty on the first £300,000 of the purchase price, and 5% on the portion between £300,001 and £500,000. If the property is priced above £500,000, the relief disappears entirely and the standard rates apply across the full purchase price — 0% up to £125,000, 2% between £125,001 and £250,000, and 5% between £250,001 and £925,000. Knowing exactly where your property sits relative to these thresholds can make a meaningful difference to your upfront costs.
- What costs should I budget for on top of my deposit?
Ans: Beyond your deposit, you need to plan for Stamp Duty, conveyancing fees, a property survey, your mortgage arrangement fee, buildings insurance and removal costs. The total can be more than most buyers expect.
- How much SDLT will I have to pay for any additional property in 2026?
Ans: In 2026, purchasing an additional residential property in England or Northern Ireland (like a second home or buy-to-let) attracts a 5% surcharge on top of standard rates.
Since thresholds dropped on April 1, 2025, you now pay:
- 5% on the first £125,000
- 7% on the portion between £125,001–£250,000
- 10% on the portion between £250,001–£925,000
- 15% on the portion between £925,001–£1.5 million
- 17% on any remaining amount above £1.5 million.
- Should I pay my mortgage arrangement fee upfront or add it to the loan?
Ans: Both options are usually available, and the right answer depends on your loan size, term and the specific deal on offer. Adding the fee to the loan means paying interest on it over the full term, which can cost more overall. Your broker will compare both options as part of finding the right mortgage for you.
- Is a property survey really necessary if the lender is already doing a valuation?
Ans: Yes, and it is one of the most important investments you can make during the buying process. The lender’s valuation is carried out to protect the lender, not you. An independent survey is carried out in your interest and can uncover issues that give you the power to renegotiate or walk away before you exchange contracts.