Solicitor and conveyancing fees: £1,000–£2,000
You need a solicitor or licensed conveyancer to handle the legal side of your purchase. They carry out property searches, review the contract, manage the transfer of funds, and register you as the new owner with the Land Registry. Typical costs range from £1,000 to £2,000 including VAT and disbursements (the third-party costs they pay on your behalf, such as search fees and Land Registry fees).
Get quotes from at least three firms. The cheapest is not always the best — a responsive, experienced conveyancer can prevent delays that cost you far more than the fee difference. Your first time buyer mortgage broker can often recommend reliable solicitors they have worked with before.
Property survey: £300–£1,500
The lender arranges a basic valuation to confirm the property is worth the purchase price, but this is not a detailed inspection. You should arrange your own survey to identify potential problems before you commit. There are three main types:
- RICS Condition Report (Level 1): £300–£500. A basic overview using a traffic-light system. Suitable for new builds or properties in obvious good condition.
- RICS HomeBuyer Report (Level 2): £400–£800. The most common choice for standard properties. Covers visible defects, damp, subsidence, and other issues without invasive investigation.
- RICS Building Survey (Level 3): £600–£1,500. A comprehensive, detailed report. Recommended for older properties (pre-1930s), unusual construction, or properties you plan to renovate.
Skipping a survey to save money is one of the most common first time buyer mistakes. A survey that identifies a £20,000 damp problem before you buy has just saved you many times its cost — or given you powerful ammunition to renegotiate the price.
Stamp Duty Land Tax: £0–£10,000
First time buyers in England and Northern Ireland pay no stamp duty on properties up to £300,000 and 5% on the portion between £300,001 and £500,000. If your property is under £300,000, this cost is zero. On a £400,000 purchase, you would pay £5,000.
Scotland (LBTT) and Wales (LTT) have their own rates and thresholds. Check the specific rules for your nation before budgeting.
Mortgage arrangement and product fees: £0–£2,000
Some mortgage products come with an arrangement fee (also called a product fee or completion fee). This can range from £0 to £2,000 or more. Products with fees often have lower interest rates, so you are effectively paying upfront for a cheaper monthly rate. Your broker should calculate whether a fee-paying product saves you money overall compared to a fee-free alternative.
You can usually add the arrangement fee to your mortgage rather than paying it upfront, but this means you pay interest on it over the full mortgage term.
Mortgage broker fee: £0–£500
Many mortgage brokers are free to use — they earn commission from the lender when your mortgage completes. Some charge a fee (typically £300–£500) in addition to or instead of commission. Even fee-charging brokers usually save you far more through better rates and smoother processing than their fee costs.
Valuation fee: £0–£400
The lender needs the property valued before approving your mortgage. Many lenders include a free valuation as part of their mortgage product, but some charge separately. Fees depend on the property value but typically range from £150 to £400. Check whether your chosen product includes a free valuation before budgeting for this.
Buildings insurance: £150–£500 per year
Your mortgage lender will require you to have buildings insurance in place from the date of exchange (not completion). This covers the cost of rebuilding the property if it is damaged or destroyed. Annual premiums depend on the property type, size, location, and rebuild cost, but typically range from £150 to £500.
If you are buying a leasehold flat, buildings insurance is usually arranged by the freeholder or management company and included in your service charge.
Contents insurance: £100–£300 per year
Not mandatory but strongly recommended. Contents insurance covers your belongings against theft, fire, flood, and other damage. Many providers offer combined buildings and contents policies at a discount.
Life insurance: varies
Not legally required, but if you have a mortgage, life insurance ensures the debt can be repaid if you die. Decreasing term life insurance (where the cover reduces in line with your outstanding mortgage) is the most cost-effective option. Premiums depend on your age, health, smoking status, and the mortgage amount. A 30-year-old non-smoker might pay £10–£20 per month for £200,000 of cover over 25 years.
Moving costs: £500–£2,000
Professional removal companies typically charge £500–£1,500 depending on the volume of belongings and distance. If you are moving locally with minimal furniture, a van hire and some helpful friends might cost as little as £100–£200. Do not forget to budget for redirecting mail (£66 for 12 months via Royal Mail), new locks, cleaning, and any immediate maintenance or decoration.
Ongoing costs people forget
- Council tax: Varies hugely by area and property band. Check the council tax band before making an offer — it can range from £1,000 to £3,000+ per year.
- Maintenance fund: A good rule of thumb is to set aside 1% of the property value per year for maintenance and repairs. On a £250,000 home, that is £2,500 per year or about £208 per month.
- Service charges (leasehold): If you are buying a flat, budget for annual service charges which can range from £1,000 to £5,000+ depending on the building.
- Ground rent (leasehold): Older leases may include ground rent. New leases granted after 30 June 2022 must have ground rent set at a peppercorn (zero).
Total budget checklist
For a £250,000 first home, a realistic total upfront budget beyond your deposit might look like this:
- Solicitor fees: £1,500
- Survey: £500
- Stamp duty: £0 (under £300,000 threshold)
- Mortgage fees: £500
- Buildings insurance: £250
- Moving costs: £1,000
- Total: approximately £3,750
Add this to your deposit target so there are no nasty surprises. A first time buyer mortgage broker will help you budget for every cost and ensure nothing catches you off guard. Get Matched Free with a specialist who will guide you through the full financial picture.