Your First Home: A Simple Guide to the Costs

Buying your first home involves more than just agreeing a purchase price. Alongside saving for your deposit, it is important to budget for a number of additional costs that arise during the buying process. These can include legal fees, surveys, mortgage related costs and moving expenses. Being aware of these costs early on can help you plan with confidence and avoid unnecessary stress as your purchase progresses.

Stamp Duty Land Tax is one of the main costs first-time buyers need to consider. If you are buying a property for £300,000 or less, you will not usually pay any stamp duty. For properties priced between £300,001 and £500,000, stamp duty is charged at 5% on the amount above £300,000. If the purchase price is over £500,000, first-time buyer relief does not apply and standard rates will be charged, which can significantly increase the overall cost.

Legal and professional fees are another key part of your budget. Conveyancing fees typically range from £1,500 to £2,000 plus VAT. In addition, there are further costs such as local authority searches, drainage searches and Land Registry fees, which your solicitor will explain to you at the outset. Most buyers also choose to have a survey carried out to provide reassurance about the condition of the property before they commit to the purchase.

Mortgage related costs should also be taken into account. Some mortgage products come with arrangement fees or valuation costs, and these can vary depending on the lender and the type of mortgage you choose. Although some buyers decide to add these costs to their mortgage, it is important to understand how this can affect the total amount borrowed over time. Comparing mortgage options carefully can help you make an informed decision.

In addition to buying costs, it is important to plan for the practical expenses of moving into and owning your new home. These may include removal costs, insurance, utility bills, council tax and ongoing maintenance. Having a small contingency fund can be helpful in covering unexpected expenses during the early stages of homeownership.

At Donaldson West, our experienced conveyancing team is here to guide first-time buyers through every stage of the process. From reviewing your title and carrying out searches to advising on stamp duty and completing your purchase, we provide clear advice, transparent costs and regular updates throughout. Our aim is to make your first home purchase as straightforward and stress-free as possible, giving you confidence and peace of mind from start to finish.

Written by Kira Meikle - Solicitor