How much does it cost to buy your first home?

    On top of your deposit, buying your first home in England typically costs a few thousand pounds. Expect legal fees and searches of around £1,200 to £1,900, a survey of £400 to £1,000 or more, possible mortgage fees and moving costs. First-time buyers pay no stamp duty up to £300,000 at current rates, and 5% on the portion up to £500,000.

    The deposit gets all the attention, but the costs around it catch many first-time buyers out, especially the ones that are due before exchange, when the purchase could still fall through. This guide lists every cost, typical ranges for each, when you pay it, and what to check so you are not surprised by a bill at the end.

    Stamp duty

    At current rates, first-time buyers in England pay no stamp duty on homes up to £300,000, and 5% on the portion from £300,001 to £500,000. On a £400,000 home that is £5,000. If the price is over £500,000, first-time buyer relief does not apply and the standard rates are used instead.

    To qualify, everyone buying must be a first-time buyer: usually that means none of you has ever owned a home, in the UK or abroad. Your conveyancer files the return and pays the tax on completion using money you send them.

    Legal fees and searches

    The HomeOwners Alliance puts the average cost of conveyancing for a purchase at around £1,500 including searches, other third-party costs and VAT, with most buyers paying roughly £1,200 to £1,900. Leasehold homes usually cost more because there is more legal work.

    A quote is made up of the firm's own fee plus disbursements: costs it pays to others on your behalf. These commonly include:

    • Searches, often £250 to £450 in total.
    • The HM Land Registry fee, which is £150 for a home worth £200,001 to £500,000 when your conveyancer applies online.
    • Identity and anti-money-laundering checks.
    • A bank transfer fee for sending the money on completion.
    • Extra charges for leasehold, new build, Lifetime ISA or gifted deposit work.

    Survey and valuation

    Your lender will value the property, sometimes for free and sometimes for a fee of up to around £300. That valuation is for the lender's benefit. A survey is your own check on the home's condition.

    Typical RICS survey costs are roughly £300 to £900 for a Level 1 condition report, £400 to £1,000 for a Level 2 survey and £630 to £1,500 for a Level 3 building survey, depending on the size, age and value of the home. On a new build, a snagging inspection often starts from around £300.

    Mortgage costs

    Some mortgages charge an arrangement or product fee, commonly £500 to £1,500, which can sometimes be added to the loan, although you then pay interest on it. Others have no fee but a higher rate, so compare the total cost over the fixed period rather than the rate alone.

    Mortgage brokers may be free to you, paid by the lender, or charge a fee. Ask how they are paid and get any fee confirmed in writing before you start.

    Moving and setting up

    The costs after the legal work are easy to forget:

    • Removals, commonly £450 to £1,400 depending on how much you have and how far you are going.
    • Buildings insurance, which your lender will require from exchange or completion.
    • Life insurance or income protection, if you decide you need it.
    • Service charge and ground rent on a leasehold home, often payable from completion.
    • Council tax, utilities and anything the home needs on day one.

    When do you pay each cost?

    The timing matters as much as the amount. Surveys, searches and some mortgage fees are paid before exchange, when the purchase could still fall through and that money would be lost. Your deposit is usually paid at exchange. Stamp duty, the rest of your legal fees and the Land Registry fee are paid on completion.

    Before you instruct anyone, ask for a written quote showing every fee and disbursement, and check your final completion statement against it line by line.

    Key takeaway

    Budget a few thousand pounds on top of your deposit, get every quote in writing with all fees and disbursements listed, and keep some money aside for costs you pay before exchange, which you may not get back if the purchase falls through.

    Frequently asked questions

    How much should I save on top of my deposit?

    On a typical first home with no stamp duty to pay, legal fees, searches, a survey and moving often add up to somewhere between £2,000 and £5,000, plus any mortgage and broker fees. Get quotes early so you can budget with real figures.

    Do I get my money back if the purchase falls through?

    Usually not for costs already incurred, such as a survey, searches or work your conveyancer has done. Ask your conveyancer before you instruct them what you would pay if the purchase does not go ahead.

    Can I add fees to my mortgage?

    Some lenders let you add the arrangement fee to the loan, but you then pay interest on it for the life of the mortgage. Legal fees, surveys and stamp duty normally have to be paid from your own money.

    Is the lender's valuation the same as a survey?

    No. The valuation tells the lender whether the property is worth what it is lending. A survey is commissioned by you and reports on the home's condition, so you know about problems before you commit.

    Notes log

    MyMoveMate gives you one place to record every quote, fee and promise with the date it was made, so you can check your completion statement against what you were told.

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