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The true cost of buying a home: all the fees most first-time buyers miss

The deposit is just the beginning. Here are all the costs of buying a home that most first-time buyers underestimate.

The costs beyond the deposit

Most first-time buyers budget for the deposit but underestimate the additional transaction costs, which typically range from £3,000–8,000 on a £200,000–350,000 purchase. These include: solicitor/conveyancer fees (£1,000–2,500), property survey (£400–1,000 depending on level), mortgage arrangement fees (£0–2,000, sometimes added to the mortgage), removal costs (£500–1,500), and immediate home setup costs (beds, white goods if not included, any urgent repairs).

Stamp Duty (or not)

First-time buyers pay no Stamp Duty Land Tax on the first £425,000 of purchase price (for properties under £625,000 total). On a £300,000 property: £0 stamp duty for a first-time buyer vs £7,500 for a home mover. This is a significant saving that shouldn't be taken for granted — verify you meet the first-time buyer criteria with your solicitor before exchange.

The ongoing ownership costs

Many buyers forget to budget for the costs of ownership that appear immediately after completion: council tax (set up within days), home insurance from exchange (legally required), utility setup and first bills, and routine maintenance. Use our free annual home maintenance schedule to plan ongoing costs. Budget at least £100–200/month in addition to mortgage payments for maintenance.

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Frequently asked questions

How much should be set aside for transaction costs beyond the deposit?
Budget 3–4% of the purchase price for total transaction costs (survey, solicitor, mortgage fees, moving). On a £250,000 property: £7,500–10,000 on top of the deposit. This is separate from the deposit and needs to be available at various points in the process — particularly solicitor fees at completion and survey fees earlier.
Can transaction costs be added to the mortgage?
Some can — many lenders allow mortgage arrangement fees to be added to the loan (you pay interest on them but don't need cash upfront). Survey and solicitor fees cannot be added to a mortgage — these must be paid from savings. Some lenders offer cashback on completion which partially offsets costs.