First-Time Home Buyer Costs: What to Budget Beyond the Deposit
First-time buyers often save hard for a deposit, then get blindsided by the other costs of buying a home. This guide lists every upfront and ongoing expense to budget for — from legal fees to maintenance — so nothing catches you out.
Most first-time buyers pour their energy into saving a deposit — and then get a shock when the other costs of buying a home appear. Understanding the full range of first-time home buyer costs before you start means you budget accurately, avoid last-minute panic, and don't end up "house poor" after moving in. This guide lists every upfront and ongoing expense you need to plan for.
Once you know your total budget, our UK Mortgage Calculator shows your monthly repayments. First, let's map out everything beyond the deposit.
The deposit is just the start
Your deposit is the largest single sum, typically 5–20% of the property price. But treating it as the only cost is the classic first-time buyer mistake. Several thousand pounds of additional costs sit alongside it — and unlike the deposit, most of them can't be borrowed. Knowing how much you can borrow is only half the picture; read our guide on how much mortgage you can borrow for the other half.
Upfront costs beyond the deposit
These are the one-off costs you pay around the time of purchase:
| Cost | What it covers |
|---|---|
| Stamp duty | Tax on property purchases above a threshold (first-time buyers often get relief) |
| Legal / conveyancing fees | The solicitor who handles the legal transfer |
| Survey | A structural check on the property's condition |
| Mortgage arrangement fee | Charged by some lenders to set up the loan |
| Valuation fee | The lender's check that the property is worth the price |
| Removal costs | Moving your belongings |
Together these can easily add up to several thousand pounds. Many first-time buyers qualify for stamp duty relief, which helps, but the legal, survey and moving costs remain regardless.
Ongoing costs after you move in
Owning a home costs more each month than the mortgage payment alone. Budget for:
- Buildings insurance — usually required by your lender.
- Contents insurance — to protect your belongings.
- Maintenance and repairs — budget roughly 1% of the property's value per year.
- Service charge and ground rent — if you're buying a leasehold flat.
- Council tax and utilities — often higher than in a rented flat.
Maintenance is the one that catches people out. Renters simply call the landlord when the boiler breaks; owners pay for it themselves. A dedicated home emergency fund prevents these surprises from becoming debt — the kind that's so hard to escape, as we explain in our guide on paying off credit card debt fast.
Worked example: the true cost of a £250,000 home
On a £250,000 home with a 10% deposit, a rough first-time buyer budget looks like this:
- Deposit (10%): £25,000
- Legal fees, survey, valuation: roughly £2,000–£3,000
- Removal costs: £500–£1,500
- Stamp duty: often £0 for first-time buyers under the relief threshold
So beyond the £25,000 deposit, you'd want an extra £3,000–£5,000 in cash ready — plus a maintenance buffer for after you move in. Building that buffer is easier when your savings are growing through compound interest.
Is buying even the right move?
With all these costs, it's worth pausing to ask whether buying beats renting for your situation and timeframe. If you might move within a couple of years, the upfront costs may not pay off — a decision we break down fully in our guide on rent vs buy.
Frequently asked questions
What costs do first-time buyers forget?
Beyond the deposit: legal and conveyancing fees, a survey, valuation and mortgage arrangement fees, removal costs, and ongoing expenses like buildings insurance and maintenance (budget around 1% of the home's value per year).
How much should I budget beyond the deposit?
Typically an extra £3,000–£5,000 in cash for legal fees, survey, valuation and moving on a mid-range home, plus a maintenance buffer for after you move in. Stamp duty relief often reduces the biggest potential cost for first-time buyers.
Do first-time buyers pay stamp duty?
Many first-time buyers qualify for relief and pay no stamp duty up to a threshold. Above that threshold, some stamp duty applies. The rules change periodically, so check the current thresholds before budgeting.
How much should I set aside for home maintenance?
A common rule of thumb is around 1% of the property's value per year. On a £250,000 home that's about £2,500 a year for repairs and upkeep — costs renters don't face.
Can I add buying costs to my mortgage?
Generally no. The deposit and most upfront fees must be paid in cash, not borrowed. Some lenders let you add an arrangement fee to the loan, but doing so means paying interest on it for the whole term.
This article was last reviewed in 2026. Figures are illustrative for guidance only — costs vary by location and circumstance. Always confirm current stamp duty rules and fees.