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Published on : January 28, 2022 10:37

Key Costs Involved With Buying Your First Home

Your first home will be one of the most expensive assets you will ever own. In addition to the overall purchase price, there are a number of key costs involved with buying your first home that you need to be aware of.

Buying your first property requires significant financial input. Every stage of the home buying process should be budgeted for accordingly in order to ensure you can both afford to buy a property, as well as maintain your lifestyle afterwards as a homeowner.

The key costs of buying your first home can be split into three categories:

  • Upfront costs.
  • Mortgage costs.
  • Ongoing costs.

Upfront costs


The deposit will be one of the largest sums of money you have to part ways with in order to become a homeowner. Depending on the type of mortgage you are looking for, you could be required to put down anywhere between five to 20 per cent of the full purchase price.

Stamp Duty Land Tax

Should you find yourself in the position as a first-time buyer of buying a property more than £300,000, then you will have to pay Stamp Duty Land Tax (SDLT) (this drops to £125,000 after being a first-time buyer). The amount you pay does depend on the value of your property as it is worked out on a percentage of the purchase price.

Mortgage Valuation Fee

This fee is payable to the mortgage lender to assess the value of the property. This will allow them to determine how much they are prepared to lend you. The cost will usually vary depending on the lender, but there are some mortgage types where you may not have to pay a fee.

Surveyor Costs

It is important to have a full inspection of the property in order to identify any possible issues, and consequentially any prospective maintenance costs to rectify them. The cost of a surveyor will depend on the size of the property, but you can get deals by tying the mortgage valuation fee in with a surveyor visit.

Legal Fees

You will need a solicitor or licenced conveyancer to carry out all the legal work involved in buying a property. They will also do local searches and liaise with the seller’s solicitors on your behalf. Legal fees tend to range from the mid hundred figures to the mid-thousand-pound mark, depending on how much work and time is involved from the solicitor’s perspective.

Electronic Transfer Fee

This fee covers the lender’s cost of transferring the mortgage funds from the lender to the solicitor. Usually, this figure is around the £40 – £50 mark; one of the more inexpensive fees throughout the whole process!

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Mortgage Costs


Mortgage lenders will require your property to be insured before you can complete on it. Every lender will have different rates available, and you aren’t required to take out insurance with your mortgage lender. This means in order to get the best rate, much like your mortgage, you will need to shop around for the best deal. You can get apply for building insurance by itself, or get it paired with contents insurance as well.

Ongoing Costs

Council Tax

Your council tax will depend on the type of band your property is situated within. This can be found online prior to buying the property and will be paid monthly.


Water, gas and electricity are the three main utilities you will be paying for in your property. It is worth identifying the costs already paid by the current homeowner to build an idea of how much you will be looking to pay, as well as shopping around for deals. There are other utility costs to factor in as well, such as landlines, TV, and broadband.


Our homes require tender love and care to avoid any undesired maintenance issues. Your initial survey should highlight any issues you may need to address straight away, but you should always put aside funds on a monthly basis to counter any sudden maintenance issues that arise.

It is important to budget and pre-plan costs when buying your first home. The entire process requires a significant financial commitment, in addition to the ongoing payments you will make once you get the keys.

When it comes to finding the financial rates that meet your circumstances, we want to make sure you get the best rates tailored to you. Buying your first home is a significant achievement, and we would love to be a part of it.

Book a consultation with one of our mortgage advisors by clicking here, or calling us on 0161 826 2998.

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