When you’re buying your first home, it’s easy to focus on saving the deposit and forget about everything else. But the
deposit isn’t the only cost you’ll need to plan for as a first-time buyer.
This guide breaks down the
real costs of buying your first home in the UK, so you know exactly what to expect and can budget with confidence.
The Deposit (The Biggest Cost)
Your deposit is the amount you put towards the purchase price of the property.
Typical deposit levels for first-time buyers:
- 5% deposit – the minimum accepted by some lenders
- 10% deposit – more lender choice and often better rates
- 15%+ deposit – usually lower monthly repayments
The size of your deposit affects the mortgage rates available to you, but it’s only part of the picture.
Stamp Duty (Do First-Time Buyers Pay It?)
Many first-time buyers benefit from
stamp duty relief, depending on the purchase price of the property and current thresholds.
In some cases, first-time buyers may pay
no stamp duty at all, while in others there may be a reduced amount to pay.
Because stamp duty rules can change, it’s important to check what applies at the time you buy.
Solicitor or Conveyancing Fees
You’ll need a solicitor or licensed conveyancer to handle the legal side of buying your home.
Typical costs include:
- Legal fees
- Searches (local authority, water, environmental)
- Land Registry fees
These costs often range from
£1,000 to £2,000, depending on the property and complexity.
Survey and Valuation Costs
Most lenders will carry out a basic valuation, but this is for the lender’s benefit – not yours.
Many first-time buyers choose to pay for a survey, such as:
- HomeBuyer Report – suitable for most modern homes
- Full Building Survey – recommended for older or unusual properties
Survey costs typically range from
£400 to £1,000+, depending on the type of survey and property value.
Mortgage-Related Fees
Some mortgages come with additional fees, including:
- Arrangement or product fees
- Booking fees
- Valuation fees (sometimes included)
These fees can sometimes be added to the mortgage, but that may increase the overall cost.
Moving Costs
It’s easy to overlook the cost of actually moving.
Common moving costs include:
- Removal companies
- Van hire
- Packing materials
Even modest moves can cost several hundred pounds.
Ongoing Costs After You Move In
Once you’ve completed, you’ll also need to budget for:
- Council tax
- Utility bills
- Buildings and contents insurance
- General maintenance
Making sure your mortgage payments remain affordable alongside these costs is essential.
How Much Should First-Time Buyers Budget in Total?
As a rough guide, many first-time buyers set aside
an extra 2–5% of the purchase price on top of their deposit to cover buying costs.
Planning ahead helps avoid last-minute stress and unexpected bills.
First-Time Buyer Costs FAQs
Can I use a gifted deposit to cover costs?
Gifted deposits are usually intended for the deposit itself, but it’s best to confirm how funds can be used.
Are any first-time buyer costs refundable?
Some costs, such as surveys or legal work, may still be payable even if a purchase falls through.
Should I keep savings aside after completion?
Yes – having a financial buffer can make your first few months of homeownership far more comfortable.
Plan Ahead and Buy With Confidence
Understanding the full cost of buying your first home puts you in control and helps you make informed decisions from day one.
If you’re a first-time buyer and want help planning your budget or understanding what costs apply to you, speaking to a mortgage adviser early can help you avoid surprises.
Clear, friendly mortgage advice for first-time buyers across the UK.
