The REAL cost of buying your first home

Here's the real costs of buying your first home, it's more than you think!

Buying your first home is exciting and we want to make sure that you have all the information you need on the costs of moving before you get started. This will allow you to budget appropriately and not have any surprises as you go through the process, the aim is to have as much money left over to put into the house for when you move in!

There are a number of costs that first time buyers need to consider when buying their first home. Here are the most important ones to keep in mind, along with some rough estimates of how much they might cost and when they're due:

Deposit: 5%-20% of purchase Price - Paid when you exchange contacts, between 6-20 weeks of your offer being accepted

A deposit is the amount of money that a buyer must put down upfront as part of the purchase price of the property. Most lenders require a deposit of at least 5% of the purchase price, but some lenders may require more. For example, on a property worth £250,000, a 5% deposit would be £12,500.

Mortgage arrangement fees: £500-£2,000, paid either on completed application or added to monthly mortgage payments

Some lenders may charge a fee for arranging a mortgage. These fees can vary widely, but they are typically around £1,000-£2,000.

Stamp duty: Price depending on purchase price, use this calculator, Paid within 14 days of completion

Stamp duty is a tax that buyers must pay on properties over a certain value. The threshold for paying stamp duty is currently £125,000, but this may vary depending on the location of the property. For example, on a property worth £250,000, the stamp duty would be £2,500.

Solicitor's fees:

A solicitor is required to handle the legal aspects of buying a property. Fees can vary, but typically range from £1,000-£2,000.

Survey costs:

A survey is recommended to check the condition of the property before purchase. Costs vary depending on the type of survey required, but typically range from £250-£1,500.

Removal costs:

Moving costs can vary depending on the distance of the move, but typically range from £500-£2,000.

Home insurance:

Insurance is necessary to protect the property against damage or loss. Costs vary depending on the size and location of the property, but typically range from £300-£1,000 per year.

In addition to these costs, first time buyers should also factor in any additional expenses such as repairs, renovations, and furniture. By considering all of these costs upfront, first time buyers can ensure that they are fully prepared for the financial responsibilities of owning their first home.