Saving the deposit is the headline goal for first-time buyers, but the deposit is far from the only cost of buying a home. Overlooking the extras can leave you short at a crucial moment. This guide explains the true cost of buying your first home, so you can budget for everything, not just the deposit.
The deposit
The deposit is the largest upfront cost, usually at least 5% of the price, and often more, as our guide to how much deposit you need explains. It is the foundation of your budget, but it is a mistake to assume it is all you need. Several other costs arrive around the time you buy, and planning for them prevents a stressful scramble for money late in the process.
Stamp duty
Stamp duty land tax can be a significant cost, though first-time buyers benefit from relief. Since April 2025, first-time buyers in England and Northern Ireland pay no stamp duty up to £300,000, then 5% between £300,001 and £500,000, with no relief above £500,000, as our guide to stamp duty for first-time buyers explains. Scotland and Wales have their own systems. Budget for any stamp duty due on your purchase.
Solicitor and conveyancing fees
You need a solicitor or licensed conveyancer to handle the legal work of buying, and their fees, plus the cost of searches and other disbursements, typically run to a few hundred to a couple of thousand pounds. These are an unavoidable part of buying, so get quotes and budget for them. The legal work is essential to transfer ownership properly, so this is money that buys you a secure purchase.
Valuation and survey costs
Your lender will arrange a valuation, which they may charge for, and you may choose to pay for a more detailed survey of the property's condition. A survey is optional but often wise, especially for older homes, as it can reveal problems worth knowing about before you commit. The cost varies with the level of survey, but it can save far more by uncovering issues or helping you renegotiate the price.
Mortgage fees
Mortgages themselves can come with fees, such as an arrangement or product fee, a booking fee, and sometimes a valuation fee. These can add up to a significant amount, and a deal with a low rate but a high fee is not always the cheapest overall. Factoring fees into your comparison, as our guide to mortgage fees explains, helps you judge the true cost of a mortgage, not just the headline rate.
Moving and setting-up costs
Beyond the purchase itself, there are the costs of actually moving in: removals, possibly some immediate furniture or appliances, and setting up utilities and council tax. First homes often need a few essentials, and these can mount up. Setting aside a sum for moving and the first weeks in your new home means you are not caught out once the bigger costs of buying are paid.
Ongoing costs to plan for
It is also worth looking beyond the purchase to the ongoing costs of owning a home: the mortgage payments themselves, buildings insurance, which lenders require, council tax, utilities, maintenance and repairs. Owning costs more than just the mortgage, so budgeting for these from the start helps you live comfortably in your new home rather than being stretched. A home that is affordable to buy must also be affordable to run.
Keeping a buffer
A sensible final point is to keep a financial buffer rather than spending every penny on buying. Unexpected costs arise, both during the purchase and after moving in, and having some savings left over provides peace of mind. Stretching yourself to the absolute limit to buy leaves no room for surprises. Building a small reserve into your plan makes the whole experience less stressful and your new home more secure.
A worked example of upfront costs
Imagine buying a £280,000 first home with a 10% deposit of £28,000. As a first-time buyer you might pay no stamp duty if eligible, but you could still face perhaps £1,500 in solicitor and conveyancing costs, a few hundred pounds for a survey, possibly a mortgage fee, and several hundred for moving. Added together, the non-deposit costs can run to a couple of thousand pounds or more, which you must budget for alongside the deposit.
Different rules in Scotland and Wales
The tax on buying property differs across the UK. England and Northern Ireland have stamp duty land tax, Scotland has Land and Buildings Transaction Tax, and Wales has Land Transaction Tax, each with its own thresholds and first-time buyer treatment. If you are buying in Scotland or Wales, check the rules that apply there rather than assuming the England figures, as the amount you pay can differ significantly.
Optional costs worth paying for
Some costs are optional but often worth it. A fuller survey can reveal problems before you commit, potentially saving far more than it costs or letting you renegotiate. Advice from a mortgage broker can find you a better deal and guide you through the process. Spending a little on the right professional help can save money and stress, so not every cost is one to avoid.
Costs you can reduce
Other costs can be reduced with effort. Comparing solicitors and conveyancers on price and service, choosing a mortgage by its overall cost rather than just the rate, and shopping around for removals can all save money. Being an organised buyer who compares the avoidable costs, while not skimping on the protections that matter, keeps the overall cost of buying down without taking risks with the important parts.
Building it all into your budget
The key is to build every cost into your budget from the start, so the total is no surprise. List the deposit, stamp duty, legal fees, survey, mortgage fees and moving costs, add a buffer for the unexpected, and check the total against your savings. Planning the whole cost of buying, rather than just the deposit, is what lets you complete your purchase smoothly and move into your first home with confidence.
Confidence comes from planning
The first-time buyers who find the process least stressful are usually those who planned for the whole cost, not just the deposit. When stamp duty, legal fees, surveys, mortgage fees, moving and a buffer are all in your budget from the outset, nothing arrives as an unwelcome surprise. That planning is what turns a daunting, expensive-seeming process into a series of manageable, expected steps towards owning your first home.
Budget for everything, buy with confidence
In short, the deposit is just the start. By budgeting for stamp duty, legal and survey fees, mortgage costs, moving and a sensible buffer, you avoid the late surprises that catch many first-time buyers out. A complete budget, covering both the cost of buying and the cost of running your home, is what lets you complete your purchase calmly and settle into your first home without financial strain.
In short
The true cost of buying your first home goes well beyond the deposit. Budget for stamp duty (with first-time buyer relief), solicitor and conveyancing fees, valuation and survey costs, mortgage fees, and moving and setting-up costs. Plan for the ongoing costs of running a home too, and keep a financial buffer for surprises. Accounting for everything, not just the deposit, lets you buy with confidence and avoid a late scramble.
Where to get help and next steps
Read our guides to how much deposit you need, stamp duty for first-time buyers, and buying your first home step by step. This is general information, not mortgage or financial advice.