A question many first-time buyers have is about a magic number. Here's a secret: the number does not exist, it doesn't sit still; it varies depending on more factors than we can realistically list here.
First-time buyers often think that the deposit is the main, or only, thing they need to save for. Although the deposit will most likely be the largest thing to save for, there is a myriad of other costs that are attached to buying and selling a home. Here are the most common ones.
The upfront costs before you get the keys
The upfront costs that you need to pay early in the process of buying a home.
The Deposit
Typically, it ranges from 5% to 20%, sometimes going higher depending on the situation.
Mortgage-related costs
- Mortgage arrangement costs and product fees.
- Mortgage broker fees – some mortgage brokers pay on completion sometimes, but it is on a case-by-case basis.
- Mortgage valuation fee.
Unavoidable fees
- Conveyancing/solicitor fees – This is the legal process of transferring ownership from seller to buyer. This process can be lengthy, and the cost depends on the specific circumstances.
· Survey costs - Surveys are carried out on a property to provide a professional assessment of its condition, highlighting any structural issues or potential defects. There are several types of surveys available, and the cost will vary depending on the level of detail required.
o In some cases, basic valuation costs may be included as part of your mortgage offer, meaning they are not always an additional expense. However, surveys can uncover issues that may lead to further costs, so it’s important to budget for this possibility to avoid any surprises.
o If you are buying with cash, a survey is not a legal requirement, but it is strongly recommended to give you peace of mind before proceeding.
- Stamp duty is another unavoidable fee that needs to be taken into consideration. There are online resources to help you find out how much stamp duty you owe.
- Keep in mind that if you are a first-time buyer, you do not need to pay stamp duty. (as of 30/03/26)
Money spent after you get the keys
The money you spend after you get the keys can add up quickly. The main things people think about are DIY materials and essential furniture.
Here are things that people rarely consider in their budget at this stage.
Moving fees
- Removal company costs
- Packing materials + van hire.
- Storage for belongings if needed.
- Time off work and logistics to arrange everything.
The ‘hidden’ costs people forget
- Home insurance (required before completion).
- Initial repairs or decorating.
- Furniture and appliances.
- Utility setup costs.
- Broadband installation.
How to prepare financially
The rule of thumb with this kind of thing is to budget more than you think you will need. Once you have a deposit saved for legal fees, think about speaking to a mortgage adviser to fully understand your true affordability. And finally, build a buffer when buying; make sure you have an emergency fund in place in case something happens, like needing a new boiler.
If you want a clear idea of what you can afford and the true costs involved for your situation, the team at Hello Mortgage can guide you through every step.
Contact us today to get started!
Tel: 0800 292 2557
Email: hello@hellomortgage.co.uk
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