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Short Lesson

The true cost of buying a home

What you'll learn

Understand the one-off costs of buying beyond the deposit.

The deposit is only the start. Buying a home carries one-off costs that catch first-time buyers out, and they can run to thousands on top of the deposit.

CostRoughlyNotes
Stamp DutyVariesFirst-time buyer relief up to £500,000
Conveyancing / legal£1,000 to £2,000Searches and Land Registry
Survey£400 to £1,500Depends on how detailed
Mortgage feeUp to about £1,000+Often addable to the loan
RemovalsA few hundred plusMore for a bigger home

Stamp Duty is the big variable. In England and Northern Ireland, first-time buyers pay nothing on the first £300,000 and 5% on the slice up to £500,000 (2026/27, so check the current thresholds; Scotland and Wales have their own systems). Above £500,000 a first-time buyer gets no relief.

The rest are smaller but add up: a solicitor for the legal work, a survey to check the property, a mortgage arrangement fee, and the cost of actually moving.

Budget for these separately from your deposit. A buyer who saves a perfect 10% deposit and forgets the fees can find themselves a few thousand pounds short at the worst possible moment.

Key takeaways

  • Buying costs more than the deposit: legal fees, survey, mortgage fee and removals.
  • First-time buyers pay no Stamp Duty up to £300,000 in England and NI (2026/27).
  • A mortgage fee added to the loan is paid off with interest over the whole term.
  • Budget the one-off costs separately so they do not catch you short on completion.
One-off buying costs beyond the deposit (illustrative)
Conveyancing~£1,500
Survey~£700
Mortgage fee~£1,000
Removals~£800

Illustrative typical ranges, excluding Stamp Duty which varies with price. Real costs depend on the property and providers you use.

Frequently asked questions

Do first-time buyers pay Stamp Duty?

In England and Northern Ireland, first-time buyers pay nothing on the first £300,000 and 5% on the slice up to £500,000 (2026/27 - check the current thresholds). There is no relief above £500,000. Scotland and Wales run their own systems.

What costs do buyers most often forget?

Conveyancing (legal work), a survey, the mortgage arrangement fee and removals. Together these can run to several thousand pounds on top of the deposit.

Can I add the mortgage fee to the loan?

Often yes, but you then pay interest on it for the whole term, so a fee added to a 25-year loan costs far more than the headline amount.

General information, not financial advice. The value of investments can fall as well as rise, and figures and rules can change; check the current position before acting.