The True Cost of Buying a Home: Beyond Your Deposit

For most first-time buyers, the focus naturally falls on two big numbers: the deposit and the mortgage. But once your offer is accepted, a range of additional costs begin to appear – some expected, others less obvious. Understanding these early can make the difference between a smooth purchase and a stressful financial stretch. Our guide breaks down the full picture, helping you plan for the real cost of buying a home in the UK.

The Starting Point: Deposit and Mortgage Costs

Your deposit is usually the largest upfront expense, typically between 5% and 10% of the property value, although higher deposits often unlock better mortgage rates. Alongside this sits your mortgage itself – but even here, extra costs can arise. Some lenders charge arrangement or product fees to secure a particular mortgage rate. These can sometimes be added to the loan, but doing so means paying interest on them over time. You may also pay for a mortgage valuation, which confirms to the lender that the property is worth what you’re paying for it. While these costs vary widely, it’s important to remember that the mortgage process itself often carries fees before you even reach completion.

Stamp Duty Land Tax (SDLT)

Stamp Duty is often the biggest additional cost after your deposit – although many first-time buyers benefit from relief depending on the purchase price. In England, first-time buyers currently pay no Stamp Duty on properties up to £300,000, with discounted rates applied up to £500,000. The tax is calculated in bands based on the property value, meaning you only pay tax on the portion above each threshold. In higher-value areas such as London, this is often the cost that surprises buyers most, so it’s worth calculating early in the process rather than leaving it until exchange.

Legal Fees and Conveyancing

Every purchase requires a solicitor or licensed conveyancer to carry out legal checks, handle contracts, manage searches and transfer funds. Typical solicitor fees range from around £1,000 to £2,500 depending on the complexity of the purchase, with additional disbursements (searches and third-party costs) often adding several hundred pounds more. Leasehold properties – common across North London – usually involve additional legal work, which can increase costs slightly. Although this can feel like an administrative expense, good conveyancing protects you from legal issues that could become far more expensive later.

Surveys and Property Checks

A mortgage valuation is not the same as a survey. The valuation protects the lender, not the buyer. Many first-time buyers choose a HomeBuyer Report or full building survey, particularly for older properties. Costs vary depending on property size and survey level, but budgeting several hundred pounds is sensible. Surveys can identify structural issues, damp, or repair needs before you commit – often saving significant money in the long term.

Moving Costs and Practical Expenses

Once contracts exchange, practical costs start to appear quickly. These might include:

• Removal company fees or van hire
• Packing materials and storage
• Cleaning or minor repairs before moving in
• These costs are often overlooked but can easily run into several hundred pounds depending on distance and property size.

Insurance and Setup Costs

Buildings insurance is usually required from exchange of contracts, not completion. Contents insurance, broadband installation, utility setup and initial council tax payments also arrive early in the process. While individually small, together they form part of the true upfront cost of moving.

The “Unexpected” Buffer

One of the most common mistakes first-time buyers make is budgeting too tightly. Many property guides recommend keeping additional funds aside for unexpected expenses or early repairs once you move in. Legal fees, mortgage costs and surveys alone can add up to several thousand pounds beyond the purchase price. Even small issues – replacing appliances, redecorating or fixing minor defects flagged in a survey – can quickly add to your overall spend.

What Does It All Add Up To?

The total varies significantly depending on property value and location, but average additional buying costs in the UK are often estimated at several thousand pounds, sometimes exceeding £8,000 excluding the deposit. The key takeaway is simple: buying a home is not just about affording the property itself, but about preparing for the process around it.

Buying your first home is exciting, but it’s also a financial transition. Understanding the full range of costs helps you move forward with confidence, avoid surprises and make informed decisions along the way. At Davies and Davies, we work closely with first-time buyers every day, helping them understand not just the properties themselves, but the practical realities of buying in North London – from first viewing through to collecting the keys. The more informed you are at the start, the smoother the journey tends to be.

Contact us:

mark@daviesdavies.co.uk – Sales Director (contact for sales, lettings and new homes)

katrina@daviesdavies.co.uk – Director of Property & Block Management (contact for property and block management)

Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG

Article & images by Barefaced Studios

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