First-time buyer costs beyond the deposit

The deposit is only part of what you need. Here are the other costs of buying your first home, and one way to help pay for them.

The short answer

As well as your deposit, budget for stamp duty (if the home costs over £300,000), legal fees, a survey, mortgage fees, and the cost of moving and furnishing. These add up to thousands of pounds, so work out the total before you make an offer.

The costs to plan for

Stamp duty. First-time buyers in England and Northern Ireland pay nothing on the first £300,000 and 5% on the part up to £500,000. See our stamp duty guide and stamp duty calculator.
Solicitor or conveyancer. They handle the legal work. Fees are usually in the low thousands of pounds including searches and VAT, and more for leasehold homes. Get quotes in advance.
Survey. A basic valuation costs a few hundred pounds, and a full structural survey costs more. It can show problems before you commit.
Mortgage fees. Arrangement and valuation fees vary from nothing to a couple of thousand pounds. A low rate with a high fee is not always cheaper. Use the mortgage calculator to compare.
Moving and setting up. Removals, furniture, and a buffer for the first repairs.
Ongoing costs. Council tax, buildings insurance, and, for leasehold homes, service charges and ground rent.

The Lifetime ISA

A Lifetime ISA lets you save up to £4,000 a year, and the government adds a 25% bonus of up to £1,000 a year. You can use it towards a first home costing up to £450,000, if you have had the account for at least 12 months. Taking money out for other reasons before age 60 loses the bonus and costs a 25% charge. You must be 18 to 39 to open one. See GOV.UK: Lifetime ISA.

How much deposit do you need?

Many lenders want a deposit of at least 5% of the price, though a bigger one usually gets you a lower rate. Try different deposits in the mortgage calculator to see the monthly payment.

Where to learn more

Costs vary a lot. This guide is for information only and is not financial advice.