Costs To Consider - Mortgages | Ulster Bank


Costs to consider when buying a rental property


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Costs to consider When buying a rental property

So you think you’ve managed to get together a deposit. That’s great but don’t forget there may be some other costs that you’ll need to budget for. There are no fixed rules about these extra costs – how much you pay all depends on the house or flat you’re buying, where you live, your mortgage deal etc. This isn’t full list of all the costs that could be involved but it’s starting point to help you work out what you can realistically afford.

Stamp Duty

Likely to be the biggest expense you’ll need to pay other than your deposit. Stamp Duty is a tax you have to pay if you buy a property or land worth £125,000 or more. The amount you need to pay depends on the purchase price of the house. 

Buildings Insurance

For any mortgage you have to have buildings insurance. You may be offered it from your mortgage provider but it can pay to shop around to find the best policy for you. If your property is leasehold and you pay a management or maintenance fee, check to see if you’re already covered.

Survey Costs

This is charged by a surveyor to check for structural defects on the property. Depending on what type of survey you have done, the cost will vary. 

Legal Fees

Both buyers and sellers need a solicitor or registered conveyancer to carry out the legal work involved in buying/selling a property.

Property valuation

This fee is charged by your mortgage lender to have the property valued. With some mortgage deals the lender may pay it for.

Ongoing costs For a rental property
Agency Fees

If you want to use an agency to let or manage your property, they will charge a fee, usually a percentage of the monthly rent.

Property maintenance

This will depend on the age and condition of your property but you could get sprung with an unexpected cost, like a broken washing machine or blocked drain, at any time.


From a quick lick of paint to a brand new kitchen, you may wish to consider the costs of any home renovation that you’ll need to carry out before the property can be let out.

Empty time

Your property could be empty between tenants so you’ll may want to make sure that you can still pay your mortgage during this time.

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