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 in England and Northern Ireland pay 0% on the first £300,000 and 5% up to £500,000 (no relief above £500,000)
- 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 and Northern Ireland, first-time buyers pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000. Properties over £500,000 don't qualify for relief, so standard rates apply. These thresholds have applied since 1 April 2025; Scotland and Wales have their own taxes.
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