First-Time Buyer Costs: What to Budget for Beyond Your Deposit

The costs to plan for

• Your mortgage deposit.
• Mortgage booking, arrangement, valuation or account fees where they apply.
• Solicitor or conveyancer fees and disbursements, which are costs they pay on your behalf such as searches.
• A suitable property survey.
• Stamp Duty Land Tax, Land and Buildings Transaction Tax or Land Transaction Tax where applicable.
• Buildings insurance and any other cover you choose after taking advice.
• Moving, storage, furniture, repairs and an emergency buffer.

Costs that can arrive before completion

Some bills are paid while the purchase is still progressing. For example, you might pay for searches, a survey or part of your legal work before you get the keys. Ask each professional what is payable, when it is payable and whether it is refundable if the purchase falls through.

MoneyHelper says buyers could potentially spend more than £5,000 on fees, excluding the deposit and property tax. Your own figure will depend on the property, area, mortgage and professional quotes.

Do not forget the first month

Completion is the beginning of ownership costs. Leave room for council tax, utilities, broadband, insurance, basic furniture and repairs. Leasehold or managed properties may also have service charges and other ongoing costs to understand before you commit.

A simple way to organise your savings

• Pot 1: deposit.
• Pot 2: buying fees and property tax.
• Pot 3: moving and first-month costs.
• Pot 4: emergency buffer that remains after completion.