The True Cost of Buying Your First Home: A Guide for First-Time Buyers

Understanding the Initial Costs

Buying your first home is an exciting milestone, but it's crucial to understand the initial costs involved. Beyond the price of the property, several other expenses can significantly impact your budget. Knowing these costs upfront can help you plan effectively and avoid unwelcome surprises.

The first and most obvious cost is the deposit. Typically, you'll need to put down at least 5% to 20% of the property's value. The larger your deposit, the better the mortgage deals you'll likely receive, potentially saving you money in the long run.

Mortgage and Legal Fees

Securing a mortgage involves additional costs. Most lenders charge a mortgage arrangement fee, which can range from a few hundred to a couple of thousand pounds. Usually these costs can be added to your mortgage. Be sure to be aware of these as you compare different mortgage offers.

Legal fees are another significant expense. A solicitor or licensed conveyancer is required to handle the legal aspects of buying a property. These costs typically range from £500 to £1,500, depending on the complexity of the transaction.

Stamp Duty Land Tax

For first-time buyers in the UK, there's good news when it comes to Stamp Duty Land Tax (SDLT). If your property is valued under £300,000, you may be exempt from paying this tax. However, if your home costs between £300,000 and £500,000, you'll pay 5% on the portion above £300,000. Understanding SDLT is vital to avoid unexpected fees.

Surveys and Valuations

Before finalising the purchase, you'll need to conduct surveys and valuations to ensure the property is sound. A basic valuation by your lender is usually required, but it might not reveal potential issues. Investing in a more comprehensive survey, such as a HomeBuyer Report or Building Survey, can identify problems that might require costly repairs.

Moving and Initial Setup Costs

Once the purchase is complete, you'll face moving expenses. Hiring a professional moving company can range from a few hundred to several thousand pounds. Consider packing materials and transportation costs if you plan to move yourself.

Don't forget initial setup costs, such as utility connections, internet installation, and buying essential furniture or appliances. These can add up quickly, so it's wise to budget accordingly.

Ongoing Homeownership Expenses

Beyond the initial costs, owning a home involves ongoing expenses. Regular maintenance, repairs, and renovations are necessary to keep your property in good condition. Setting aside a portion of your budget for these expenses can prevent financial strain later on.

Additionally, you'll wish to consider insurance. Home insurance is essential to protect your investment, and its cost can vary based on location, property size, and coverage level.

Final Thoughts

Buying your first home is a thrilling journey, but it's essential to be financially prepared. By understanding the true costs involved, from initial expenses to ongoing maintenance, you can make informed decisions and enjoy the process with confidence. Remember, careful planning and budgeting will pave the way for a successful and satisfying homeownership experience.

Ready to take the guesswork out of your first home purchase?

At Mortgage321, we specialise in helping first-time buyers navigate every cost — from deposits and surveys to legal fees and ongoing ownership expenses — with clarity and confidence. Whether you’re unsure how much you can afford, need help comparing mortgage options, or want personalised guidance on government schemes and deposit strategies, our experienced advisers are here to help.

Get in touch today. Call 01255 440142 for a tailored mortgage review and take the next step toward owning your first home with expert support you can trust.