Buying your first home is one of life’s big milestones. It’s also one of those moments where excitement and anxiety tend to move in together, like a pair of housemates you didn’t invite but can’t get rid of.
You’ve saved, you’ve searched and you’ve found the one. But before you start dreaming of paint colours and housewarming playlists, it’s worth taking a look under the financial floorboards.
Because lurking beneath your mortgage offer are a few hidden costs that can jump out and scare your budget senseless if you’re not prepared.
Since it’s Halloween, let’s call them what they are, the five homebuying horrors that can creep up on first-time buyers. The good news? Once you know they exist, they’re easy to exorcise.
DEPOSIT AND MORTGAGE REPAYMENTS
You already know you’ll need a deposit, typically at least 5% of the purchase price, though the best mortgage rates tend to appear at 10% or above. What catches some buyers off guard is how quickly that deposit has to materialise once your offer is accepted, and how it interacts with your mortgage repayments once you move in.
A good rule of thumb is to budget beyond the deposit – include your first month’s mortgage payment, any product fees, and a small contingency for interest rate movements if you’re on a variable deal.
Lenders like to see a healthy financial buffer, and you’ll like the peace of mind it brings when the first direct debit hits.
Use an online mortgage calculator to model different repayment scenarios. It’s better to know now if that “dream home” will feel like a financial haunted house later.
STAMP DUTY
Stamp Duty Land Tax (SDLT) is often the first true shock in the homebuying process, a little like finding out your dream house comes with a resident poltergeist.
If you’re buying your first home you can claim a discount (relief). You’re eligible if you and anyone else you’re buying with are first-time buyers.
You’ll pay no SDLT up to £300,000 and 5% SDLT on the portion from £300,001 to £500,000. If the price is over £500,000, you cannot claim the relief.
Example
You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:
0% on the first £300,000 = £0
5% on the remaining £200,000 = £10,000
Total SDLT = £10,000
Use the official government SDLT calculator (https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro) before you start viewing homes — it helps to know what’s really lurking in the shadows of your price range.
CONVEYANCING AND LEGAL FEES
Buying a home means entering a world where time moves differently. Days disappear into email chains. Documents multiply overnight. And at the heart of it all is your conveyancer, the legal professional who handles the transfer of ownership.
Conveyancing fees vary depending on the property’s value and complexity but you should typically expect to pay anything from £800 and £1,500, plus VAT.
Don’t forget the extras: local authority searches, anti–money laundering checks and Land Registry fees. Some lenders also charge a separate legal fee if you don’t use one of their panel firms.
Always ask for a full breakdown of fees before you instruct a solicitor. And remember the cheapest quote isn’t always the best value – experience counts when the chain starts creaking.
VALUATION AND SURVEY COSTS
When you apply for a mortgage, your lender will arrange a valuation to confirm the property is worth what you’re paying.
That’s for their peace of mind, not yours. If you want to avoid any nasty surprises later (crumbling walls, dodgy wiring, mysterious damp patches that appear at midnight), commission your own independent survey.
There are three main types:
RICS Level 1 (Condition Report): basic overview, around £300–£400.
RICS Level 2 (HomeBuyer Report): more detailed, £400–£900.
RICS Level 3 (Full Building Survey): the full works for older or unusual properties, £800–£1,500.
It’s money well spent. A good surveyor can spot hidden horrors before you commit – and sometimes give you the leverage to renegotiate the price.
Always budget for a mid-range HomeBuyer Report at least. Think of it as an insurance policy against future fright nights.
MOVING COSTS
You’ve exchanged contracts, completed the sale and finally have the keys. Cue celebration – and then the next round of costs. Removal firms, new locks, Wi-Fi setup, appliances, furniture, cleaning supplies, the first big food shop. It adds up fast.
A local move with a small van might set you back £300–£500, while a larger, long-distance move could exceed £1,500. Then there’s the “invisible” spending: curtains that don’t fit, paint, lightbulbs and the like.
Many first-time buyers underestimate these final costs and end up stretching their credit cards just as they start paying a mortgage.
Set aside at least £2,000–£3,000 for your first month in the property. Even if you don’t use it all, it’s better to have it ready than to wake up to a financial jump scare.
Buying your first home isn’t just about affording the property, it’s about affording the process. The scariest part isn’t what’s hiding in the cellar, it’s what’s hiding in the small print.
But with a little planning and a clear-eyed budget, you’ll find there’s nothing to fear.
Information contained within was correct at the time of publication but is subject to change. Your home may be repossessed if you do not keep up repayments on your mortgage
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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