First-time buyer expenses explained: what you really need to budget for
Buying your first home is exciting, but it can also be confusing when it comes to money. Most first-time buyers focus on saving a deposit and forget that there are several other costs involved along the way.
Some expenses are paid upfront, some come later, and others only appear once you’ve got the keys. Knowing what to expect can help you avoid nasty surprises and plan your budget with confidence.
Here’s a simple breakdown of the key expenses first-time buyers in the UK should know about.
- Your deposit
Your deposit is usually the biggest cost you’ll face.
Most lenders ask for a minimum of 5% of the property price, but putting down more (such as 10% or 15%) can unlock better mortgage rates and lower monthly payments.
For example:
- £200,000 property
- 5% deposit = £10,000
- 10% deposit = £20,000
It’s worth remembering that the deposit is separate from all other buying costs – you’ll need additional savings on top.
- Mortgage arrangement fees
Many mortgages come with an arrangement fee (sometimes called a product fee).
- Typically ranges from £0 to around £2,000
- Can often be added to your mortgage, but this means paying interest on it
- Paying it upfront reduces the overall cost of borrowing
A mortgage adviser can help you work out whether a fee-free deal or a lower-rate deal with a fee is better for your situation.
- Valuation fee
Your lender will usually carry out a valuation to make sure the property is worth what you’re paying.
- Many mortgage deals include a free valuation, but some can range from £150 to £1,500, depending on property value
This valuation is for the lender’s benefit, not yours – it won’t highlight potential issues with the property.
- Survey costs
A survey is optional but strongly recommended for first-time buyers.
Surveys can uncover problems like damp, subsidence or roof issues that aren’t visible during a viewing.
Common survey types include:
- Homebuyer report – usually £400–£700
- Building survey – usually £700–£1,500 (often for older or unusual properties)
Skipping a survey can save money upfront, but it can be a costly gamble later.
- Solicitor and conveyancing fees
You’ll need a solicitor or conveyancer to handle the legal side of buying a property.
Typical costs include:
- Legal fees
- Local searches
- Land Registry fees
Altogether, first-time buyers usually pay £1,000–£2,000, depending on the property and complexity of the purchase.
Always check what’s included in the quote so there are no surprises.
- Stamp duty (or lack of it)
Good news for many first-time buyers: you may not have to pay any stamp duty at all.
In England and Northern Ireland:
- First-time buyers pay no stamp duty on properties up to £300,000
- Relief applies on homes costing up to £500,000
Stamp duty rules are different in Scotland and Wales, so it’s important to check what applies where you’re buying.
- Mortgage broker fees
Some mortgage advisers charge a fee, while others are paid by the lender.
- Fees can range from £0 to around £500
- A good broker can save you time, stress and potentially a lot of money so can be a worthy investment
Always ask upfront how your adviser is paid and what you’ll receive in return.
- Moving costs
Moving day costs are easy to overlook but can add up quickly.
You might need to budget for:
- Removal company or van hire
- Packing materials
- Storage (if there’s a gap between moving out and moving in)
Costs vary, but £300–£1,200 is common depending on distance and property size.
- Furniture and immediate home costs
Once you’ve moved in, the spending doesn’t stop.
Common first-time buyer expenses include:
- Furniture and appliances
- Curtains and blinds
- Small repairs or decorating
- Initial utility bills and council tax
Even a modest budget of £1,000–£3,000 can disappear quickly, so it’s worth planning ahead.
- Ongoing homeowner costs
Finally, remember that owning a home comes with regular expenses you may not be used to.
These include:
- Buildings insurance (often required by your lender)
- Maintenance and repairs
- Service charges or ground rent (for flats)
- Utility bills
Setting aside a small monthly buffer can help you stay on top of these costs.
Top tip: If you’re not used to being responsible for household bills, speak to family and friends and ask how much they’re paying.
A quick summary for first-time buyers
As a first-time buyer, you should budget for:
- Deposit
- Mortgage fees
- Valuation and survey costs
- Solicitor and legal fees
- Stamp duty (if applicable)
- Moving and furnishing costs
Planning ahead means fewer surprises and a much smoother buying experience.
Need help working out what you can afford?
Understanding all the costs of buying your first home can feel overwhelming – but you don’t have to do it alone.
At Simpson Financial Services, we help first-time buyers understand their full budget, find the right mortgage and feel confident every step of the way.
If you’d like friendly, no-pressure advice, get in touch and let’s talk through your options.
