Buying your first home in the UK: the costs to plan for

By FCalc Plus Editorial Team · Published 20 October 2026 · Updated 22 October 2026

The real costs of buying a first home in the UK: deposit, Stamp Duty and first-time buyer relief, legal fees, surveys, mortgage fees, moving costs and ongoing costs, with a worked example.

The deposit is the biggest hurdle for most first-time buyers, but it's not the only cost. Legal fees, surveys, mortgage fees, tax and moving costs can add thousands of pounds. Planning for them avoids last-minute stress. Figures here apply to England unless stated; Scotland and Wales have different property taxes.

1. The deposit

Most lenders require at least 5% of the property price, though larger deposits usually get lower interest rates. Rates often improve at 10%, 15%, 25% and 40% deposits. A larger deposit also reduces the risk of negative equity if prices fall.

Lifetime ISA: if you're aged 18 to 39 when you open one, you can save up to £4,000 a year and get a 25% government bonus, for a first home costing up to £450,000. Withdrawals for other purposes (before 60) usually incur a 25% charge. The government has consulted on reforms, so check the current rules.
Gifted deposits: lenders usually need a letter confirming the gift isn't a loan.

2. Stamp Duty Land Tax (England and Northern Ireland)

First-time buyers pay no Stamp Duty on the first £300,000 of a property costing up to £500,000, and 5% on the portion from £300,001 to £500,000. Above £500,000, standard rates apply: 0% up to £125,000, 2% from £125,001 to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above.

In Scotland, Land and Buildings Transaction Tax applies, with its own first-time buyer relief. In Wales, Land Transaction Tax applies, with no specific first-time buyer relief but a higher starting threshold.

3. Legal (conveyancing) fees

A solicitor or licensed conveyancer handles the legal work. Expect fees of roughly £1,000 to £2,000 plus VAT, depending on the property and whether it's leasehold. Disbursements, such as searches and Land Registry fees, are extra. Ask for a full quote.

4. Surveys

The lender's valuation isn't a survey. Consider an independent survey:

RICS Home Survey Level 1: basic condition report for newer, conventional homes.
Level 2: the most common choice, highlighting significant issues.
Level 3: detailed, for older, larger or unusual properties.

Costs typically range from a few hundred pounds to over £1,000.

5. Mortgage costs

arrangement or product fees, often £0 to £1,500 (can sometimes be added to the loan, but then attract interest);
valuation fees, sometimes free;
broker fees, if you use a broker who charges;
a booking fee for some deals.

6. Moving and setting up

removals or van hire;
buildings insurance from exchange of contracts (lenders require it), and contents insurance;
furniture, appliances and basic repairs;
changing locks.

7. Ongoing costs

mortgage payments, which can rise when a fixed deal ends;
Council Tax, energy, water and broadband;
maintenance: a common rule of thumb is to budget around 1% of the property's value a year;
for leasehold flats, service charges and ground rent.

A worked example

A first-time buyer purchasing a £280,000 home in England with a 10% deposit:

deposit: £28,000;
Stamp Duty: £0 (below £300,000 with first-time buyer relief);
legal fees and disbursements: about £2,000;
Level 2 survey: about £600;
mortgage fees: about £1,000;
moving costs: about £800.

Total upfront: roughly £32,000, before furniture.

Steps to get ready

Check your credit file and correct errors.
Use a mortgage calculator to see what you could borrow and afford.
Get an agreement in principle.
Save a buffer on top of the deposit for costs and emergencies.

Frequently asked questions

Can I buy with a 5% deposit?

Yes, many lenders offer 95% mortgages, but rates are higher.

Am I a first-time buyer if I've owned abroad?

Not for Stamp Duty relief: you must never have owned a residential property anywhere.

Sources and further reading

Facts checked on 20 October 2026. Spotted an error? Tell us and we will correct it.