Buying your first home is exciting, but many first-time buyers underestimate some of the true costs involved in probably one of their biggest lifetime purchases.
These costs can often be divided into two - upfront and ongoing costs. Understanding these is essential to budgeting effectively.
Here we will look at the Upfront costs:
Deposit
Typically, you need to put down a percentage of the property’s price, usually between 5% and 20%. Often first-time buyers tend to put a smaller deposit down due to affordability being stretched, however, to note if you can afford a larger deposit then you will often qualify for a lower interest rate on your mortgage loan, meaning a lower monthly mortgage payment

Mortgage Fees
- Arrangement Fee. Some lenders charge an arrangement (administration) fee for setting up the mortgage with them. This can often range from a couple of hundred to a couple thousand pounds, though around £995 tends to be the average (at time of writing). It can be paid upfront or added to the mortgage, again due to affordability a larger proportion of buyers tend to add it to the loan. But this is a personal choice. Adding to the loan means you will pay more interest over the longer term, than paying upfront
- Valuation Fee. Lenders usually charge to value a property purchase. This valuation may be an online assessment or a physical valuation whereby they will need to enter the purchase property. This basic valuation is for the mortgage lenders benefit to ensure it’s worth the amount you want to borrow. Costs vary depending on the lender and the value of the property, but to give an idea it can be between £100 to £400. Obviously depends on the lender
Survey Costs
- Basic Valuation. As mentioned, this is required by the lender to confirm the property's value. This is often included in mortgage fees
- Homebuyer’s Report. this is a mid-level survey, costing around £400 to £1,000. This provides details on the property’s condition
- Full Structural Survey. This is a detailed and comprehensive survey, especially relevant for older or unusual properties, usually costing upwards of £600 to £1,500. Again, dependent on survey
Stamp Duty
Stamp Duty Land Tax (SDLT) is a tax on a property purchase. The rate depends on the property’s value, though here we are talking about first time buyers. Currently there is no SDLT on a property purchase less than £425,000. This allowance reduces to £300,000 property value or below from the 31st of March 2025 for first time buyers. To note: if the property price is over £500,000 then you cannot claim any first-time buyer SDLT relief
Legal/Conveyancing Fees
See previous post – why do I need a solicitor/conveyancer? You’ll need to pay a solicitor/conveyancer to handle the legal aspects of your house purchase, including conducting searches (e.g., land registry) and drafting contracts. Fees typically range from £800 – £1,500 (this is a guide), including disbursements
Search Fees
These include local authority searches, environmental searches, and water/drainage searches to check for issues like planning restrictions, flood risks, or structural concerns. Costs vary but are generally between £200 – £500
Broker Fees
Naturally we suggest you utilise a Broker - such as us – Holistic Mortgage & Protection. Depending on the complexity of your case we charge up to £995 to take your through the full process of obtaining the most appropriate mortgage solution for you. Our average fee is around £450. We work on your behalf to get you the most appropriate mortgage
Moving Costs
You need to take into consideration include hiring a removals company or van, packing materials, and storage if needed. The cost varies widely depending on the distance and the volume of items to be moved, from a few hundred pounds upwards
Having considered the main costs for purchasing your first home, you now need to consider the ongoing costs when you actually get into your new home. See our separate post.
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