First-time buyer checklist: the costs beyond the deposit

Saving a deposit is a big milestone, but it is rarely the only cost of buying a home. Building a realistic budget early helps you avoid surprises.

Upfront costs

• Deposit – the portion of the price you pay yourself; a larger deposit usually unlocks better mortgage rates.
• Stamp Duty Land Tax (in England and Northern Ireland), with separate taxes in Scotland (LBTT) and Wales (LTT). First-time buyer reliefs and thresholds have changed over time, so use the official calculators on gov.uk or the relevant revenue authority.
• Legal fees – for a solicitor or conveyancer to handle the transfer.
• Survey costs – a basic condition report or a more detailed building survey, depending on the property.
• Mortgage fees – arrangement and valuation fees can sometimes be added to the loan, but doing so means paying interest on them.
• Removal costs and initial furnishing.

Ongoing costs

1. Mortgage payments, which may change when a fixed-rate deal ends
2. Council tax and utilities
3. Buildings and contents insurance (lenders usually require buildings cover)
4. Maintenance, which many owners budget for as a percentage of the property value each year
5. Service charge and ground rent, if buying a leasehold flat

Tips for the mortgage process

• Get an agreement in principle before house-hunting.
• Compare deals via a regulated broker or directly with lenders, and check the overall cost, not just the headline rate.
• Be ready to show payslips, bank statements and ID.
• Do not take on new credit between applying and completing.

Your home may be repossessed if you do not keep up repayments on your mortgage.

This article is general information, not personal financial advice. Rules and allowances change, so always check the latest position on gov.uk or with a regulated adviser.