Buying your first home is an exciting milestone—but it’s also one of the biggest financial commitments you’ll ever make. While most buyers focus on saving for a deposit, there are several other costs to budget that can catch you off guard if you’re not prepared.
To help you stay in control and avoid surprises, here are 7 essential costs to budget for when buying a home in the UK.
Deposit
The biggest upfront cost is usually your deposit, which is typically 5%–20% of the property’s purchase price. For example, if you’re buying a £250,000 home, you may need between £12,500 and £50,000 saved.
Larger deposits can open the door to better mortgage deals, so saving more can mean lower interest rates and smaller monthly repayments.
Lender Fees
Even with a deposit, getting a mortgage comes with its own set of charges. These may include:
- Lender product fees (usually £0–£1,500)
- Valuation fees (often free but this varies depending on the lender)
Some lenders allow you to add these to your loan, but doing so means you’ll pay interest on them.
Stamp Duty (SDLT)
Stamp Duty Land Tax is a government tax on property purchases in England and Northern Ireland. As of 2025, first-time buyers pay:
- No stamp duty on properties up to £300,000
- 5% on the portion between £300,001 and £500,000
If you’re buying above these thresholds or you’re not a first-time buyer, you’ll likely pay more. Here’s a link to a helpful government calculator if you’re unsure.
Legal Fees (Conveyancing)
You’ll need a solicitor or licensed conveyancer to handle the legal side of your purchase. Conveyancing fees typically range from £1,200 to £2,000, including searches and admin costs.
Some solicitors offer a “no move, no fee” policy, which may be worth considering in case your purchase falls through.
Survey Costs
A property survey checks the condition of the home you’re buying and can help you avoid costly repairs later. Survey options include:
- Level 2 (RICS) Report – around £400–£1,000 for a quality survey
- Level 3 (RICS) Report – around £600–£1,500 for a quality survey
While surveys are optional, they can offer peace of mind—and bargaining power if issues are found. For more information we highly recommend you speak to Fourth Wall!
Moving Costs
Don’t forget to factor in the cost of physically moving! Depending on how much you’re moving and how far, removal costs can range from £300 to over £1,000.
You might also need to budget for:
- Packing materials
- Storage (if there’s a gap between moving out and in)
- Cleaning services
Initial Set-Up & Ongoing Costs
Once you move in, you’ll likely face a few start-up costs, such as:
- Furniture and appliances
- Redecorating or DIY improvements
- Council Tax
- Buildings and contents insurance
- Utilities (electric, gas, water, broadband, etc.)
Creating a monthly budget early on helps ensure you can afford not just the house—but everything that comes with it. Everyone’s circumstances are different when considering what specific costs to budget for when buying a home speak to us to confirm what costs to budget for.
Final Thoughts
Budgeting for these seven home buying costs will put you in a much stronger financial position when it’s time to make your move. Whether you’re a first-time buyer or moving up the ladder, knowing the true cost of buying a house in the UK helps you plan better and avoid stress later on.
Need help understanding your budget or finding the right mortgage deal? At Mortgage Links, we specialise in supporting homebuyers every step of the way. Get in touch today for expert, jargon-free advice.
Your mortgage broker will be able to advise what the cheapest product will be for you and what specific costs to budget for when buying your home.
*All information up to date at time of writing, speak to your advisor for specific advice for your own circumstances.
