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Calculating the total costs of a Mortgage

For many people, the desire to take their first step on the housing ladder becomes so compelling that they tend to ignore the fact that it can often be phenomenally expensive to do so.

This is why, before you start looking at in the property market and “translate” the price you see into monthly mortgage costs, it helps to do your sums properly.

There are two basic components to buying a home – the one-off costs involved, such as legal fees, stamp duty, mortgage application fees and so on, and the ongoing costs of looking after it.

Read on to see the typical costs associated with buying a £250,000 property.

Initial purchase

The one-off costs might be as follows:

Item Cost
Deposit (say 10%) £25,000
Stamp duty (£1 over £250,000 and
you would have to pay 3%, or £7,500) £2,500
Solicitors’ fees (these include
search and Land Registry fees,
bank transfer fees and VAT) £1,000
Removal costs £1,000
Survey fee (simple valuation fees
are cheaper but less thorough) £650
Mortgage application fee £300
Total £30,450

That does not include mortgage brokers’ fees, usually up to 1 per cent of the total sum borrowed, plus the costs of failed searches and extra legal fees that might follow.

Neither does it cover the one-off potential cost of re-decoration, new furniture, furnishings, fixtures and fittings and so on. These could add thousands more to your final bill.

Regular Costs


















































Item Monthly cost
£225,000 repayment mortgage over 25 years (assumed 6% variable rate) £1,466.75
Council tax £100
Life insurance (assumed joint life, first death, male aged 37, female aged 35, both non-smokers, £225,000 sum assured) £27.63
Home and contents insurance £45
Gas £40
Telephone & internet £40
Water and sewage £45
Electricity £40
Assumed maintenance costs (you may be buying a new property with lower costs) £100
TV licence £11
Total £1,915.38


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