Quick take: First-time buyers are often surprised by how much they need beyond the deposit. Between solicitor fees, surveys, searches, moving costs, and immediate repairs, you could need 5,000 to 15,000 pounds on top of your deposit and stamp duty. Here is the full picture.

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The Costs You Expect

Most first-time buyers have planned for:

• Deposit: Typically 5% to 15% of the purchase price. On a 165,000 pound property in Sheffield, that is 8,250 to 24,750 pounds. On a 450,000 pound flat in South London, it is 22,500 to 67,500 pounds

• Stamp duty: First-time buyers pay nothing on the first 300,000 pounds (from April 2025), then 5% on the next 200,000 pounds. Relief is not available above 500,000 pounds

1. Solicitor and Conveyancer Fees

Your conveyancer handles the legal transfer. Costs vary:

• Legal fees: 800 to 2,000 pounds plus VAT (higher for leasehold)

• Disbursements: 200 to 500 pounds (searches, Land Registry fees, bank transfer fees)

Leasehold purchases are more complex and therefore more expensive. If you are buying a leasehold flat, expect to pay 200 to 500 pounds more than for a freehold house.

2. Survey Costs

Your mortgage lender will commission a basic valuation, but this is for their benefit, not yours. It checks whether the property is worth enough to secure the loan. It does not check whether the roof leaks.

• RICS Home Survey Level 2 (Homebuyer Report): 400 to 700 pounds. Suitable for most standard properties

• RICS Home Survey Level 3 (Building Survey): 600 to 1,500 pounds. Recommended for older properties, unusual construction, or properties you plan to renovate

Skipping a survey is one of the most common regrets. A first-time buyer in Sunderland paid 450 pounds for a Level 2 survey that caught a 15,000 pound damp issue. A buyer in Bath skipped the survey on a 375,000 pound Georgian conversion and discovered structural movement six months later. The survey is not the place to save money.

3. Mortgage Arrangement Fees

Many attractive mortgage rates come with arrangement fees of 500 to 2,000 pounds. You can usually add this to the mortgage balance, but that means paying interest on it for the full term. A "fee-free" mortgage with a slightly higher interest rate can sometimes work out cheaper over two or five years. Worth running the numbers with a broker.

4. Moving Costs

• Professional removals: 500 to 1,500 pounds depending on distance and volume

• Van hire (DIY move): 50 to 200 pounds

• Storage (if needed): 50 to 150 pounds per month

• Mail redirection: 48 pounds for three months via Royal Mail

5. Immediate Costs After Moving In

These are the ones that catch people out:

• Buildings and contents insurance: Required by your lender from exchange. Typically 200 to 600 pounds per year

• Council tax: Check the band before buying. Can range from 1,200 to 3,000+ pounds per year

• Utility setup and deposits: Broadband installation, energy supplier, water. Budget 200 to 400 pounds for the first month

• Basic repairs and essentials: New locks, curtains, appliances. Budget at least 500 to 1,000 pounds

A Real Budget Example

For a first-time buyer purchasing a 250,000 pound property with a 10% deposit:

• Deposit: 16,500 pounds

• Stamp duty: 0 pounds (first-time buyer relief)

• Solicitor: 1,200 pounds

• Disbursements: 350 pounds

• Survey: 500 pounds

• Mortgage fee: 1,000 pounds

• Moving: 700 pounds

• Insurance/council tax/utilities (first month): 400 pounds

• Essentials: 500 pounds

• Total beyond deposit: approximately 4,650 pounds

FAQ

Can I add all costs to the mortgage?

Only the mortgage arrangement fee can typically be added to the loan. Solicitor fees, surveys, and other costs usually need to be paid from savings.

Is there help available for first-time buyers?

The Lifetime ISA offers a 25% government bonus (up to 1,000 pounds per year) on savings towards a first home costing up to 450,000 pounds. Some local authorities and housing associations also offer shared ownership or equity loan schemes.

Disclaimer: This article is general information, not financial, tax, or legal advice.