First-time buyer costs beyond the deposit

6 min read · June 2026

Everyone talks about the deposit. It's the headline number, the savings goal, the thing that determines when you can buy. But the deposit is not the only money you'll need to buy a home — and the other costs can add up to several thousand pounds that nobody warned you about.

Stamp Duty Land Tax (SDLT)

Stamp duty is the tax you pay to HMRC when you buy a property in England or Northern Ireland. The rates and thresholds change periodically — as of mid-2025, the first-time buyer relief thresholds reverted to pre-temporary levels:

• First £300,000: 0% for first-time buyers
• £300,001–£500,000: 5%
• Above £500,000: standard rates apply (first-time buyer relief removed entirely)

So on a £350,000 home as a first-time buyer, you'd pay 5% on £50,000 = £2,500 in stamp duty. On a £280,000 home, you'd pay nothing.

Solicitor / conveyancing fees

You'll need a conveyancing solicitor (or licensed conveyancer) to handle the legal side of the purchase: title searches, contracts, Land Registry registration, and funds transfer. Expect to pay:

• Legal fees: £1,000–£2,000 depending on the firm and property value
• Searches (local authority, drainage, environmental): £250–£500
• Land Registry fee: £20–£500 depending on property value (set by HMRC)
• Electronic transfer fee (TT fee): £20–£50

Total solicitor costs: roughly £1,500–£3,000. Don't just take the cheapest — conveyancing delays are expensive and stressful. Check reviews and ask how many transactions they're handling.

Survey costs

A mortgage lender will carry out a valuation, but this is for their benefit, not yours — it checks the property is worth what you're paying, not whether it has problems. You'll need your own survey:

• Level 1 (condition report): ~£300–£400. Basic. Fine for modern, standard-construction properties in good condition.
• Level 2 (homebuyer report): ~£400–£700. Reports on visible defects and flags issues to investigate further. Suitable for most properties.
• Level 3 (full structural survey): £600–£1,500+. Thorough investigation of structure and condition. Worth it for older, unusual, or visibly problematic properties.

A survey that flags a £5,000 problem lets you renegotiate the price or walk away. Skipping the survey to save £500 is almost never worth it.

Mortgage arrangement fees

Many mortgage deals — particularly the ones with the lowest rates — come with a product fee, typically £500–£1,500. You can often add this to the mortgage (and pay interest on it) or pay it upfront.

A lower rate with a £999 fee isn't always better than a slightly higher rate with no fee — it depends on your loan size and term. A mortgage broker can run the comparison for you. MoneySavingExpert's mortgage best buys also factors in fees.

Buildings insurance

You'll need buildings insurance from exchange of contracts — not completion. This is because from exchange, you're legally committed to the purchase and liable if something happens to the building. Typical annual cost: £150–£350 depending on property size and location.

Moving costs

Removal firm for a two-bed: roughly £600–£1,500 depending on distance and how much you're moving. If you're doing it yourself, still factor in van hire (£100–£250), packing materials, and help from friends who'll need feeding.

The total picture

On a typical first-time purchase of £280,000–£350,000, budget for £3,000–£8,000 in upfront costs beyond your deposit. This money needs to be liquid and available at completion — it can't be borrowed or sat in a notice account.