The deposit is the biggest single cost, but the costs around it can add thousands of pounds. Stamp duty, legal fees and the survey all fall within weeks of each other, and first-year costs start when you get the keys.
Stamp duty
Stamp Duty Land Tax applies in England and Northern Ireland and is charged in slices of the purchase price, not on the whole amount. The current bands for buying your only home:
- Up to £125,000 — nothing.
- £125,001 to £250,000 — 2% on that slice.
- £250,001 to £925,000 — 5% on that slice.
- Above £925,000 — 10%, then 12% beyond £1.5 million.
First-time buyers get relief: nothing on the first £300,000, then 5% on the portion from £300,001 to £500,000 — but the relief vanishes entirely if the home costs more than £500,000, at which point normal rates apply to the lot. Scotland and Wales run their own versions (Land and Buildings Transaction Tax and Land Transaction Tax) with different bands, so check the right calculator for where you're buying. Check your own figure early on the official GOV.UK stamp duty pages.
Buying as a home mover: nothing on the first £125,000; 2% on the next £125,000 = £2,500; 5% on the remaining £100,000 = £5,000. Total: £7,500, due shortly after completion, in cash.
Buying the same home as a first-time buyer: nothing on the first £300,000; 5% on the remaining £50,000. Total: £2,500, £5,000 less for the same house. (Bands current at the time of writing; always check GOV.UK for the rates on the day you buy.)
Conveyancing and searches
You need a solicitor or licensed conveyancer to handle the legal side — checking the title, running local authority searches for planning issues and flood risk, moving the money, registering you as the owner. Budget somewhere in the region of £1,000 to £2,000 including searches, more for leasehold, which involves extra legal work. Get two or three quotes, and make sure they're itemised; the difference between a headline quote and the final bill is often in the ‘disbursements’. A slow conveyancer can delay a purchase or cause it to fall through.
The survey
The lender's valuation is not a survey. It checks whether the property is adequate security for the loan and says little about the building. A proper survey, done for you, checks the actual condition: from a basic condition report, through the mid-level survey that suits most conventional homes, up to a full structural survey for older, unusual or visibly tired properties. Expect a few hundred pounds at the light end and north of a thousand for the full works on a period house.
A survey that finds a £15,000 roof repair or damp before exchange lets you renegotiate the price or withdraw.
Mortgage costs beyond the interest rate
- Product or arrangement fees — some deals carry a fee of £1,000 or so. A low rate with a big fee can cost more than a slightly higher rate with none, so the total cost over the deal period is the figure to compare.
- Valuation fee — some lenders charge for the valuation; many deals include it free.
- Broker fee — many brokers are paid by the lender and free to you; some charge a fee as well. A broker should tell you how they are paid.
- Adding fees to the loan. This is possible, but interest is charged on the fee for as long as it is borrowed, so a £1,000 fee over 25 years costs more than £1,000.
Moving day and the first year
Removals typically run from a few hundred pounds to over a thousand for a full house move. Buildings insurance has to be in place from exchange. The first year brings its own costs: replacing a failed appliance, changing the locks, curtains and lightbulbs, a boiler service, and higher running costs than a rented flat.
If you're buying a leasehold flat, add the standing costs — service charge and any ground rent — into your monthly sums before you make an offer. They are compulsory and can change.
£3,000–£6,000+a realistic range for the costs around the deposit on a mid-priced home — before stamp duty, which can add thousands more depending on price and your buyer status
Ongoing costs beyond the mortgage
On top of the mortgage payment are council tax, utilities, buildings and contents insurance, and maintenance, including repairs a landlord would pay for when you rent. Some planners use a rough rule of thumb of setting aside around 1% of the property's value a year for upkeep. Set aside something monthly for the house itself.
Checklist
- Run your actual stamp duty number on the GOV.UK calculator (or the Scottish or Welsh equivalent) for the price bracket you're shopping in.
- Get two or three itemised conveyancing quotes, including searches and any leasehold extras.
- Price the right level of survey for the age and condition of what you're buying.
- Look at mortgage deals on total cost over the deal period, including fees.
- Add removals, buildings insurance from exchange, and a first-year buffer of at least £1,000.
- Check the sum still leaves your emergency fund intact on completion day.
Saving for the whole cost. Add up every line above — stamp duty, legal, survey, lender fees, moving, the first-year buffer — and treat the total as part of your savings target, alongside the deposit. If you are saving now, our savings habit guide covers regular saving, and the first-time buyer guide covers reliefs and bonuses.