Buying your first home is exciting. It’s a huge milestone — and probably the biggest purchase you’ll ever make. But before you fall in love with that perfect property and rush to make an offer, it’s important to understand what it’s really going to cost.
Many first-time buyers are surprised to learn that the price on the listing isn’t the full amount they’ll need to budget for. In fact, there are several hidden or less obvious expenses that can quickly add up — from legal fees to upfront taxes, moving costs and more.
This guide breaks down all the key costs so you can plan with confidence and avoid last-minute surprises.
1. Your deposit
Let’s start with the big one.
Your deposit is the chunk of money you’ll put down upfront towards the cost of your home. In the UK, most lenders require at least 5% of the purchase price, although a higher deposit (10–20%) will usually get you a better mortgage deal.
Example:
If you’re buying a home for £250,000:
- 5% deposit = £12,500
- 10% deposit = £25,000
The more you can save, the lower your monthly mortgage repayments are likely to be — and the more favourable your interest rate will be.
2. Mortgage fees
Getting a mortgage often comes with its own set of charges. These can include:
- Arrangement fee – Some lenders charge this upfront or allow you to add it to your mortgage (though that means paying interest on it). It can range from £0 to over £1,000.
- Booking fee – A smaller charge (often around £100–£200) just for securing the mortgage deal.
- Valuation fee – Covers the lender’s basic assessment of the property’s value. Some lenders offer this for free, others charge up to £500.
Always ask your lender or broker to outline all fees before you apply. Some first-time buyer mortgage products come with fewer fees to help you get started.
3. Legal and conveyancing fees
Once your offer is accepted, you’ll need a solicitor or conveyancer to handle the legal side of things. This includes carrying out local searches, liaising with the seller’s solicitor, and registering the property in your name.
Legal fees for first-time buyers typically fall between £800 and £1,500, depending on the property’s value and complexity.
Some solicitors offer fixed-fee packages, but always check what’s included — things like bank transfer fees and disbursements (third-party costs) may be added on.
4. Stamp duty
Stamp Duty Land Tax (SDLT) is a government tax paid when buying a property in England or Northern Ireland. The good news is that first-time buyers benefit from a reduced rate, making this less of a burden than it is for other buyers.
As of 2025:
- First-time buyers don’t pay any stamp duty on properties priced up to £425,000.
- For properties between £425,001 and £625,000, you’ll pay 5% on the amount above £425,000.
- If the property is over £625,000, you’ll lose the first-time buyer relief and pay the standard rate.
To estimate how much you’ll need, use a reliable stamp duty tax calculator UK to get a tailored figure based on your property price and location.
5. Survey costs
Before committing to the purchase, many buyers choose to have a survey done. This can uncover issues with the property that might not be visible at first glance — such as damp, subsidence, or structural problems.
There are different types of surveys:
- RICS Condition Report (£250–£400) – Basic overview, suitable for newer properties.
- Homebuyer Report (£400–£600) – Most popular option, highlighting issues that could affect the property’s value.
- Building Survey (£600–£1,000+) – Most thorough, ideal for older or unusual properties.
While optional, a survey can save you thousands in the long run — or even help you renegotiate the purchase price if issues are found.
6. Removal and moving costs
Whether you hire a professional removals company or rent a van and rope in friends, there will be some costs involved in moving day.
Budget anywhere from £300 to £1,000, depending on how far you’re moving, how much you’re taking, and whether you need storage or packing help.
Top tip: Always get multiple quotes and check whether your chosen company offers insurance for goods in transit.
7. Home insurance
Lenders usually require you to have buildings insurance in place from the moment you exchange contracts. This covers the structure of the property (walls, roof, etc.).
Many homeowners also take out contents insurance to cover belongings like furniture, electronics, and valuables.
Combined home insurance policies can cost between £150 and £300 per year, but it depends on property size, location, and the level of cover.
8. Council tax
As soon as you move in, you’ll be responsible for council tax. The cost depends on your property’s valuation band and your local authority.
You can check the band and cost on your local council’s website. First-time buyers sometimes forget to budget for this — so make sure it’s included in your monthly calculations.
9. Utilities and set-up costs
Setting up your new home involves more than just plugging in the kettle. You’ll need to set up or transfer:
- Gas and electricity
- Water
- Broadband and phone line
- TV licence
There may also be connection or setup fees, especially for broadband. Make a list ahead of time and set aside a small budget (around £200–£300) to cover these costs.
10. Furniture and essentials
Even if your new home is in great shape, you’ll likely need to buy some essentials.
Think:
- Curtains or blinds
- Light fittings
- Kitchen appliances (if not included)
- Basic furniture (bed, sofa, table, etc.)
This is one of the most flexible areas in your budget, but even basic set-up can cost £1,000 or more if you’re starting from scratch.
Can you reduce some of these costs?
Yes — with careful planning and a bit of research.
- Compare mortgage deals and consider using a broker
- Ask for recommendations on solicitors or surveyors
- Use cashback websites for utilities and insurance providers
- Consider second-hand furniture or borrowing from friends/family
- Take advantage of first-time buyer incentives and schemes
Being prepared doesn’t mean spending more — it just means knowing where your money will go.
Final thoughts
Buying your first home in the UK is a major financial commitment — and not just because of the purchase price. From deposits to legal fees, stamp duty to surveys, the total cost can catch you off guard if you’re not prepared.
But don’t be discouraged.
Knowing the full picture gives you control. It helps you avoid stress, compare options, and move forward with confidence.
And remember, you don’t have to do it all alone. Estate agents, mortgage brokers, and independent advisers can all help guide you through each step.
So before you make an offer, take a moment to run the numbers — and be sure to factor in every cost, not just the one in bold on the listing page.
