Most first-time buyers focus almost entirely on the deposit when saving to buy a home — then get a shock when they discover the additional costs of actually completing a purchase. Between Stamp Duty (if applicable), solicitor fees, mortgage arrangement fees, surveys, and moving costs, the total 'extras' on a typical first home purchase can easily reach £5,000–15,000 on top of the deposit. Here's the complete breakdown of every cost to budget for.
Stamp Duty Land Tax (SDLT)
Stamp Duty Land Tax (SDLT) is paid on property purchases in England and Northern Ireland (Wales has Land Transaction Tax and Scotland has LBTT). Since 1 April 2025, standard rates are 0% up to £125,000, 2% from £125,001 to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above. First-time buyers get relief: 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. Above £500,000, standard SDLT rates apply to the whole price. Example: a first-time buyer purchasing a £400,000 property pays SDLT on (£400,000 − £300,000) = £100,000 at 5% = £5,000. A buyer who has owned before would pay £10,000 on the same home, and anyone buying a second home or investment property pays a 5% surcharge on top.
- First-time buyer nil-rate: first £300,000 (since April 2025)
- 5% on portion from £300,001 to £500,000
- Above £500,000: standard rates; no first-time buyer relief
- England and Northern Ireland only — different rules in Wales (LTT) and Scotland (LBTT)
- Second home/BTL: additional 5% surcharge on all SDLT bands
Legal and Solicitor Fees
Conveyancing solicitor fees for a typical residential purchase are £1,000–2,500 in total, including professional fees and disbursements. 'Disbursements' are costs the solicitor pays on your behalf: Land Registry search fees (£3), local authority searches (£100–300), drainage and water searches (£50–100), chancel repair search, environmental search, and Land Registry registration fee (based on property value — £95–910 for most residential properties). Some online conveyancers advertise lower headline fees but use high disbursement charges — compare the total cost including all disbursements, not just the headline professional fee.
- Typical total: £1,000–2,500 including disbursements
- Local authority search: £100–300
- Land Registry fee: £95–910 depending on property value
- Compare total cost: headline fee + all disbursements
- Budget £1,500 as a realistic minimum
Survey Costs
A mortgage valuation (which your lender requires) is not a survey for your benefit — it simply confirms the property is worth the price you're paying. You should also commission your own independent survey. Options: RICS HomeBuyer Report (Level 2) — suitable for conventional modern properties in reasonable condition (£400–700); RICS Building Survey (Level 3) — comprehensive structural report, recommended for older, unusual, or larger properties (£600–1,500+). The survey cost is worth every penny — a Level 3 survey on a Victorian terrace might find £20,000 of structural work needed, allowing you to renegotiate the price or walk away. Never skip the survey.
- Mortgage valuation (lender's): not a full survey for you
- Level 2 HomeBuyer Report: £400–700, suitable for modern properties
- Level 3 Building Survey: £600–1,500+, recommended for older/unusual properties
- Worth the cost: identifies issues for renegotiation or decision to walk away
- Don't skip — savings from a renegotiation often exceed survey cost
Other Costs to Budget For
Beyond the main items, budget for: mortgage arrangement/product fee (£0–2,000 depending on deal — sometimes added to the loan), mortgage broker fee (£0–500 — many brokers are free to buyer), removal company (£500–2,000 depending on distance and volume), buildings insurance from exchange of contracts (compulsory), initial furnishing and white goods if buying from a vacant property (£1,000–5,000+ depending on what's included), and a reserve for immediate repairs or redecoration. Also: home insurance (buildings + contents), council tax for the new property (factor into ongoing affordability), and utility connection costs if any.
- Mortgage arrangement fee: £0–2,000 (can add to loan but costs interest)
- Mortgage broker fee: £0–500 (many fee-free brokers exist)
- Removal company: £500–2,000
- Buildings insurance from exchange: legally required
- Initial furnishing/appliances: £1,000–5,000+ for unfurnished properties
Frequently Asked Questions
What is the minimum extra cash I need on top of my deposit?
Budget at least £5,000–8,000 in additional costs for a typical first home purchase. More (£10,000+) if your property is older, over £300,000, or you're moving long distance.
Can I add survey and solicitor costs to my mortgage?
No — these must be paid upfront from your own funds. Mortgage arrangement fees can usually be added to the loan (though this costs you interest over the mortgage term).
Do I get my survey fees back if the purchase falls through?
No — surveys, searches, and solicitor costs are generally non-recoverable if a purchase falls through. This is a real risk in the UK 'chain' system, where purchases regularly fall through due to chain collapse.
How do I find a cheap but reliable solicitor?
Compare quotes on conveyancing comparison sites (Compare My Move, Reallymoving, ConveyancingCalculator). Read reviews carefully and check qualifications — cheap online conveyancers can be slow or unresponsive when problems arise.
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