Almost every first-time buyer focuses on the same number: the deposit. It's the big, daunting figure that takes years to save, so it dominates the planning. But the deposit is only part of what you need in the bank to actually complete a purchase. A string of additional costs — some sizeable, some small — lands during the buying process, and buyers who haven't budgeted for them get a nasty surprise at the worst possible moment. Here's what to plan for.
Stamp duty (where it applies)
Stamp Duty Land Tax is the big one, and it's the cost most likely to catch people out because the rules and thresholds change over time. First-time buyers have historically benefited from relief that reduces or removes the bill below a certain property value, but the thresholds shift with government policy, so you must check the current rates for your situation rather than relying on what a friend paid a few years ago. Depending on the price of the home and the rules in force when you buy, this can be anything from nothing to a substantial four- or five-figure sum — so confirm it early and build it into your budget from the start.
Conveyancing and legal fees
You'll need a solicitor or licensed conveyancer to handle the legal side of the purchase — the contracts, the searches, the transfer of ownership. Their fee, plus the cost of local authority and other searches they carry out on your behalf, typically runs into several hundred to over a thousand pounds. It's not optional, and it's worth getting quotes rather than accepting the first recommendation, as prices vary.
The survey — don't skip it
This is the cost buyers are most tempted to cut, and often the most expensive mistake. The basic valuation your mortgage lender does is for their benefit, to confirm the property is worth what they're lending — it is not a proper survey of the home's condition. A separate, more detailed survey, paid for by you, can reveal damp, structural problems, a failing roof or dodgy wiring before you commit. Spending a few hundred pounds on a survey that uncovers a major defect — giving you grounds to renegotiate or walk away — can save you tens of thousands. Skipping it to save money is a false economy of the highest order.
Mortgage costs
The mortgage itself often carries fees beyond the interest. There may be an arrangement or product fee to secure a particular deal (sometimes worth paying for a lower rate, sometimes not — do the maths), and possibly a valuation fee. A mortgage broker can be invaluable for a first-timer, and while some charge a fee, many are paid by the lender. Factor these in when comparing deals, because the headline rate isn't the whole cost.
The smaller costs that add up
Individually minor, collectively significant:
- Removals — a van and movers, or at least hiring a vehicle and bribing friends with pizza.
- Buildings insurance — required from the moment you exchange contracts, not when you move in.
- Initial furnishing and essentials — first homes often need white goods, curtains, basic furniture; it mounts up fast.
- Immediate repairs and decorating — almost no home is perfect on day one.
- Setting up utilities and council tax — and the ongoing bills that start straight away.
Build a buffer, not just a deposit
The practical lesson is to save beyond your deposit. A sensible approach is to budget for these extra costs as a separate pot on top of the deposit, and — crucially — to keep an emergency fund intact rather than draining every penny into the purchase. Moving into a home with nothing left in reserve is risky: boilers break, and the first unexpected bill shouldn't tip you into debt.
None of this should put you off buying. It's simply about going in with eyes open. The buyers who sail through are the ones who treated the deposit as the start of the budget, not the whole of it. Cost out stamp duty, legal fees, a proper survey, mortgage fees and the moving extras early, keep a buffer back, and the process becomes far less stressful — and far less likely to throw you a financial curveball just as you're picking up the keys.