The Complete Guide to First-Time Buyer Costs in the UK

Discover the true costs of buying your first home in the UK. From deposits to solicitor fees, learn how to budget effectively for your property journey.

Buying your first home is an exciting milestone, but working out exactly how much money you need can feel overwhelming. The short answer to the true cost of buying your first home is that, alongside your deposit, you should typically budget an additional £2,000 to £5,000 to cover essential purchasing costs like legal fees, surveys, and mortgage arrangements. At Ernest May, we want to ensure you are fully prepared. You can explore our first-time buyer services and use our mortgage calculator to start crunching the numbers. Let’s break down exactly what you need to save.

Your deposit is the largest upfront cost. Most lenders require a minimum of 5% of the property’s purchase price, though saving 10% or more can often give you access to a wider range of mortgage products and potentially more favourable terms. For example, if you are buying a property for £200,000, a 5% deposit would be £10,000, while a 10% deposit would be £20,000.

When securing a mortgage, there are often fees associated with setting up the loan. It is important to factor these in early on: Arrangement fees: Charged by the lender, these can range from £0 to around £2,000. You can sometimes choose to add this fee to the mortgage balance, though it means you will pay interest on it over the lifetime of the loan. Adviser fees: We recommend speaking to a qualified mortgage adviser. They can help you navigate complex criteria and find suitable deals. Always ask for a clear, upfront breakdown of any broker fees involved.