UK Finance

Hidden Costs of Buying Your First Home in the UK

SYM

You've saved your deposit — congratulations! But the deposit is only part of the story. First-time buyers are often shocked by the additional costs of buying a home. This guide ensures nothing catches you off guard. See our deposit saving guide for the foundation.

Upfront Buying Costs

Budget for these before you exchange contracts.
  • Solicitor/conveyancer fees: £1,000-2,500 including searches and disbursements
  • Survey: £250-700 depending on type (basic, homebuyer, full structural)
  • Mortgage arrangement fee: £0-2,000 (can often be added to mortgage)
  • Valuation fee: £0-500 (many lenders offer free valuations)
  • Stamp Duty: First-time buyers pay 0% on the first £425,000 in England (check current thresholds)
  • Electronic transfer fee: £25-50 for transferring the purchase funds

Moving and Setup Costs

The costs don't stop at completion.
  • Removal company: £300-1,500 depending on distance and volume
  • Furniture and appliances: Budget £2,000-5,000 for essentials
  • Decorating: Even basic paint and supplies cost £500-1,000
  • Utility connections and deposits: £100-300
  • Redirecting mail: £60-165 depending on duration
  • New locks: £100-200 (always change locks on a new property)

Ongoing Costs New Homeowners Forget

Homeownership comes with regular costs you didn't pay as a renter. Buildings insurance (required by your mortgage lender): £150-400/year. Maintenance and repairs (budget 1% of property value per year). Service charges and ground rent if leasehold. Council tax may differ from your previous address. Utility bills may be higher in a larger property than your previous flat.

Building a First-Home Buffer Fund

Aim to have £3,000-5,000 beyond your deposit for these costs. Use SYM's challenge tracker to build a dedicated 'moving costs' fund alongside your deposit savings. A sinking fund approach works perfectly — separate pots for solicitor fees, moving costs, and furniture. Better to be over-prepared than scrambling to find funds on completion day.

Frequently Asked Questions

How much extra should I budget beyond my deposit?+

£5,000-10,000 to comfortably cover solicitors, survey, moving costs, and initial setup. This varies significantly by property price and location.

Can I add buying costs to my mortgage?+

Some costs (like the arrangement fee) can be added to the mortgage, but this means paying interest on them for 25+ years. Only do this if absolutely necessary.

Do first-time buyers pay stamp duty?+

In England, first-time buyers pay 0% on the first £425,000 and 5% on the portion between £425,001 and £625,000. Properties over £625,000 don't qualify for relief. Check current thresholds as they change.

#first home#house buying costs#first-time buyer#stamp duty#UK property

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