The Costs of Buying a Home in Newcastle

When you’re buying a home in Newcastle, it’s easy to focus on your deposit and monthly mortgage payments.

What often catches people out are the extra costs involved in the process, and sometimes they can add up quickly. Whether you’re a first time buyer in Newcastle or moving home, it helps to understand exactly what you’ll need to budget for.

Mortgage Valuation & Survey Costs

After your offer is accepted, your mortgage lender will arrange a valuation on the property. This is not the same as a full survey. It’s a basic check to confirm that the property is worth the amount you’re borrowing. Some lenders include this for free, while others may charge a few hundred pounds or include it within the overall product cost.

This valuation is done purely for the lender’s purposes. It won’t highlight any issues with the property’s condition. That’s why arranging your own property survey is strongly advised.

As the buyer, you’re responsible for booking your own property survey if you want a more detailed look at the property’s condition. The type of survey you need depends on the age and structure of the home. A HomeBuyer Report (level 2) is often suitable for newer or standard properties. If the property is older or has been heavily modified, a full building survey (level 3) might be more appropriate. Costs can range from around £500 to over £1,500 depending on the level of detail.

A property survey can give you peace of mind and potentially save you thousands in repair costs later on. While it’s not compulsory, it’s one of the most important steps in the buying process.

Mortgage Arrangement Fees

Some mortgage deals come with product fees, also known as arrangement fees. These are charged by the lender for setting up the mortgage and are often linked to lower interest rate products.

Fees can vary quite a bit. Some mortgages come with no fee at all, while others may charge up to £2,000. You usually have the choice to pay this upfront or add it to your mortgage balance. If you add it to your loan, it will increase the amount you borrow and you’ll pay interest on it over time.

The right option depends on your budget and how long you plan to stay in the property. Paying a fee for a lower rate can sometimes save you money in the long run, but not always.

Our mortgage advisors in Newcastle will compare a wide range of products for you and help you work out whether a fee-paying deal actually offers better value once everything is factored in.

Conveyancing & Legal Fees

When you buy a property, you’ll need a solicitor or licensed conveyancer to handle all the legal work. This includes drawing up contracts, managing local searches, transferring funds, registering the ownership, and liaising with your mortgage lender.

Costs can vary depending on the property’s value, location, and whether it’s leasehold or freehold. For a typical property purchase in Newcastle, you might expect legal fees to range from around £1,000 to £2,000.

When you’re comparing quotes, it’s important to check whether VAT is included. You should also ask if disbursements are part of the total cost. These are third-party charges your solicitor will pay on your behalf, such as Land Registry fees and local authority search costs.

Stamp Duty Costs

Stamp Duty Land Tax (SDLT) is a government tax applied to most property purchases. If you’re moving home or buying a more expensive property in Newcastle, there’s a good chance you’ll need to pay it.

If you are a first time buyer in Newcastle, you may still benefit from a discount, depending on the property price and current rules, but most buyers will need to factor in stamp duty as part of their overall budget.

Your solicitor will usually handle the payment once your purchase completes, but it’s important to have a clear idea of the amount early on. The rules and thresholds can change, and the amount you pay depends on your own circumstances as well as the property price.

To get an accurate and up-to-date figure, use our free Stamp Duty Calculator. It’s quick, reliable, and reflects the latest government rules.

Estate Agent Fees

Estate agent fees only apply if you’re selling a property as part of your move. If you’re buying a home in Newcastle without selling one, this is a cost you won’t need to worry about.

For those who are selling, estate agents usually charge a percentage of the final sale price. The amount varies depending on the agent and the level of service you choose. Some agents offer fixed-fee options, while others charge based on a percentage, typically for a more hands-on, personalised service.

These fees are normally paid on completion, and will be taken from the sale proceeds. It’s worth checking what’s included before you commit to any agreement, such as professional photos, marketing, and accompanied viewings.

Although estate agent costs can seem high, choosing the right agent can make a big difference to how smoothly and quickly your home sells.

Broker Fees

Some mortgage brokers charge a fee for arranging your mortgage, while others offer a fee-free service. What you pay can vary depending on the complexity of your case and the type of mortgage you’re applying for.

As a mortgage broker in Newcastle, we believe in being upfront about any costs from the start. If a fee applies to your case, we’ll explain it clearly before you decide to go ahead. Our fee is only payable once your mortgage completes.

We don’t charge for initial appointments, and we never take upfront application fees. This means you can speak to a mortgage advisor, get your options, and understand the process before committing to anything.

By working with a broker who’s open and transparent, you’ll know exactly what you’re paying for and when, no surprises later on.

Removal Fees

Once your purchase is complete, the cost of moving your belongings is something many buyers forget to factor in. Whether you’re moving across Newcastle or relocating from further afield, removal costs can vary depending on the service you choose.

If you’re happy to hire a van and handle the move yourself, this can be one of the cheapest options. For a more hands-off experience, a full removals service will take care of the heavy lifting, packing, and transport, though it will cost more.

The price depends on how much you’re moving, how far you’re travelling, and whether you want extras like packing materials or storage. It’s worth comparing a few local companies and getting quotes early, especially if you’re moving at a busy time of year.

Some buyers also choose to stagger their move using short-term storage or multiple trips, especially if there’s a gap between selling and buying.

Date Last Edited: July 31, 2025