The deposit is usually the highest upfront cost when buying a home, so it often gets most of the attention.
However, the full cost of buying can also include legal fees, surveys, mortgage fees, moving costs, insurance, property tax and the first things you need once you move in.
This guide keeps the main costs simple, so you can build a clearer budget before you start viewing homes seriously.
What to know about the costs of buying a home in the UK
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Your deposit is the starting point
Many buyers need at least 5% to 10% of the property price, although a larger deposit may give you more mortgage options.
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Buying costs can add thousands
Legal work, surveys, mortgage fees, removals and tax can all increase the amount you need upfront.
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Property tax depends on where you buy
England, Northern Ireland, Scotland and Wales each have their own rules or tax systems.
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Keep money back after completion
Knowing your costs early can help you avoid stretching your savings too far.
Unsure what you could afford?
How much do you need to buy a home?
The amount you need depends on the property price, your deposit, your mortgage, where you are buying and the services you use.
As a simple example, a first-time buyer purchasing a £250,000 home may need to think about:
Cost
Example amount
10% deposit
£250,00
Solicitor and legal costs
£1,500 to £2,500
Survey
£400 to £1,500
Mortgage product fee
£0 to £2,000+
Moving costs
£400 to £1,000+
Insurance and setup costs
Varies
Stamp duty or land tax
Depends on location and buyer status
A larger deposit can sometimes help you access more mortgage options because you are borrowing a smaller percentage of the property value. However, many first-time buyers start with a smaller deposit and build from there.
The key is to avoid using every penny of your savings on the deposit if you still need money for fees, moving costs and the first few months in your new home.
Your deposit
Your deposit is the money you put towards the property yourself.
For example:
Property price
5% deposit
10% deposit
£200,000
£10,000
£20,000
£250,000
£12,500
£25,000
£300,000
£15,000
£30,000
A larger deposit can sometimes help you access more mortgage options because you are borrowing a smaller percentage of the property value. However, many first-time buyers start with a smaller deposit and build from there.
The key is to avoid using every penny of your savings on the deposit if you still need money for fees, moving costs and the first few months in your new home.
Your deposit also affects your loan-to-value, or LTV. This is the percentage of the property price you borrow as a mortgage. For example, a 10% deposit usually means a 90% LTV mortgage.
Check your own figures with our loan-to-value calculator →
Stamp duty and property tax
Property tax can be one of the biggest extra costs to check before you make an offer. The rules depend on where in the UK you are buying.
England and Northern Ireland
Buyers may need to pay Stamp Duty Land Tax, known as SDLT.
Eligible first-time buyers currently pay:
- 0% on the first £300,000
- 5% on the portion from £300,001 to £500,000
This relief only applies if the property is worth £500,000 or less.
Scotland
Scotland uses Land and Buildings Transaction Tax, known as LBTT.
First-time buyer relief can increase the nil-rate threshold from £145,000 to £175,000 for eligible buyers. This can reduce the LBTT bill by up to £600.
Wales
Wales uses Land Transaction Tax, known as LTT.
Wales does not currently offer a specific first-time buyer relief. The rates and bands are different from England, Northern Ireland and Scotland, so it is worth checking the Welsh rules if you are buying there.
Your solicitor or conveyancer will usually calculate the tax and handle the payment. It is worth checking early, as it can affect how much cash you need alongside your deposit.
Solicitor and conveyancing costs
You will need a solicitor or licensed conveyancer to handle the legal side of buying your home.
They check the contract, carry out property searches, deal with the seller’s solicitor, manage the transfer of money and help make sure the property can legally become yours.
Legal costs can vary, but your quote may include:
- solicitor or conveyancer fees
- property searches
- Land Registry fees
- bank transfer fees
- leasehold checks, if relevant
It is worth asking for a clear quote before you start. A good quote should explain what is included, what is charged separately and when you need to pay.
Surveys and property checks
A survey helps you understand the condition of the property before you fully commit.
This is different from a mortgage valuation. A lender’s valuation is mainly for the lender, so they can check whether the property is suitable security for the mortgage. A survey is for you.
The right survey depends on the property. A newer home in good condition may only need a simpler report. An older, unusual or visibly worn property may need a more detailed survey.
A survey can feel like another cost at the time, but it can give you useful peace of mind. If it highlights repairs or issues, you may be able to ask further questions before moving ahead.
Mortgage fees
Some mortgage deals come with fees, while others do not.
A lender may charge a product fee, valuation fee, booking fee or account fee. Some buyers pay these upfront. Others may be able to add certain fees to the mortgage.
Adding fees to the mortgage can reduce the amount you pay straight away, but it may also mean you pay interest on those fees over time.
This is why it helps to compare the overall deal, not just the interest rate. A mortgage with a lower rate and a high fee is not always cheaper overall, especially if you are borrowing a smaller amount.
Know your numbers before you offer
Muttuo can help you check your budget, compare lenders and understand your next steps.
Moving and first-home setup costs
Moving costs can be easy to underestimate because they often arrive near the end of the process.
You may need to budget for:
- removals or van hire
- storage, if there is a gap between moving dates
- cleaning, furniture and appliances
- broadband setup and utility changes
- locks, small repairs and basic home items
- buildings insurance from exchange or completion
You may not need everything straight away. However, keeping some money aside can make the first few weeks in your new home feel much easier.
This is especially true if you are buying your first home and moving from rented accommodation or living with family. You may need more basics than expected, from curtains and kitchen items to tools, lighting and small fixes.
Ongoing costs after you move in
Once you own the property, your budget changes.
As well as your monthly mortgage payment, you may need to plan for:
- council tax
- gas, electricity and water
- broadband and phone bills
- buildings insurance
- regular maintenance and repairs
- service charges or ground rent, if leasehold
A simple monthly homeowner budget can help you see what the property may cost to run. This is useful because the right home should feel manageable after completion, not just affordable on paper.
Your mortgage payment will usually be one of your biggest monthly costs after you move in. The amount can change depending on how much you borrow, the interest rate and the mortgage term.
Estimate your monthly payment with our repayment calculator →
How to plan your buying budget
A simple way to plan is to split your money into three parts.
First, work out your deposit. This is the money going directly towards the property.
Next, estimate your buying costs. This can include legal fees, surveys, mortgage fees, property tax and moving costs.
Finally, keep a buffer. This gives you room for furniture, repairs, bills and the first few months in your new home.
You do not need every number to be exact from day one. However, having a clear estimate early can help you view homes with more confidence and avoid stretching your savings too far.
How Muttuo Mortgages can help
Buying a home is easier when you understand the full cost, not just the deposit.
Muttuo Mortgages can help you:
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check what you may be able to borrow across over 100 lenders
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compare mortgage options based on your deposit and monthly budget.
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understand the mortgage fees linked to different deals
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plan your next step before you make an offer
Our team offer whole-of-market mortgage advice, helping you move forward with a clearer view of what buying could cost.
Need help
with your next mortgage step?
Compare options from over 100 lenders with whole-of-market mortgage advice from Muttuo.
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FAQs on the costs of buying a home
What is the biggest cost when buying a home?
The deposit is usually the biggest upfront cost.
Many buyers aim for at least 5% to 10% of the property price, although the amount you need depends on the mortgage, lender and property.
Do first-time buyers pay stamp duty?
Some first-time buyers pay no stamp duty, depending on the purchase price and where they are buying.
In England and Northern Ireland, eligible first-time buyers currently pay no Stamp Duty Land Tax on the first £300,000 of a qualifying property worth £500,000 or less. Different rules apply in Scotland and Wales.
Are solicitor fees included in the mortgage?
No. Solicitor and conveyancing fees are usually separate from the mortgage.
You normally pay these as part of the buying process, although the exact timing can vary by solicitor.
Do I need a survey when buying a home?
A survey is not always required by the lender, but it can be useful.
It can help you understand the property’s condition before you fully commit, especially if the home is older, unusual or needs work.
Can mortgage fees be added to the loan?
Some mortgage fees can sometimes be added to the loan.
This may reduce what you pay upfront, but it can increase the amount you borrow and the interest you pay over time.
How much should I keep aside after buying?
It is sensible to keep a buffer for moving costs, bills, furniture, repairs and the first few months in your new home.
The right amount depends on the property and your circumstances, but avoiding a completely empty savings pot can make the move feel much easier.
