Additional costs first time buyers should save for

Additional costs first time buyers should save for 

If you plan to buy your first home, you might already know you need to

• save a deposit and
• commit to monthly mortgage repayments

But there are other costs to be prepared for too. Let's break down exactly what to save for.

Stamp Duty Land Tax

Commonly referred to as Stamp Duty, it’s called different things depending on where you live. In England, it’s called ‘Stamp Duty Land Tax’ (SDLT), in Wales it’s called ‘Land Transaction Tax’, and in Scotland ‘Land and Buildings Transaction Tax’.  

 

You only need to pay this if the cost of property you buy is over a certain amount - the rules and amounts vary across the UK. 

Legal fees 

The fees you pay to a solicitor or conveyancer for handling all the legalities, like drawing up contracts, carrying out local searches and registering the property. 

 

The amount you pay will vary depending on the location and cost of the property.  

House Survey 

Your mortgage lender will carry out a valuation to make sure that the property they’re lending you money for is worth what you’re planning to pay for it. 

 

It’s important to know that a mortgage valuation is not a survey. While a valuation is for the lender’s benefit, a survey can give you additional information about the state of the property from a professional. If any problems are found, you can always go back to the estate agent and renegotiate your offer. 

 

There are three main types to choose from: 

• a homebuyers report 
• a full structural survey 
• a snagging survey 

They vary in scope and cost, depending on your property's size, location and value so you’ll need to weigh up all your options and decide which is best for your situation. 

 

Buying in Scotland? Things are slightly different for you, because the seller must provide you with a Home Report but you may still want to consider paying for your own survey for peace of mind. 

Local searches 

Your solicitor or conveyancer will carry out local searches to check things like: 

• whether the property is connected to sewers 
• whether the land it’s built on is contaminated 
• whether there’s anything you need to know about (like nearby road schemes or enforcement actions). 

Land and property registration 

Your solicitor or conveyancer will register your details with the Land Registry to register your ownership of the house. The cost depends on how much the property is worth. 

 

Land and property are dealt with by HM Land Registry in England and Wales, Registers of Scotland in Scotland, and Land and Property Services in Northern Ireland.  

Mortgage costs 

You can expect to pay some additional fees to your lender on top of your mortgage repayments. These include things like a booking fee, an arrangement fee, a valuation fee, and an electronic transfer fee. Costs differ from lender to lender. 

Moving costs 

The cost of physically moving home will vary depending on whether you can do most of the work yourself or you’re planning to hire a van or removals company.  

Feeling overwhelmed? 

This can feel like a lot to think about. Stay on top of it all with our free app for first time buyers. Build a savings goal that covers all these costs and stay in control of your savings.