What Costs Will A First Time Buyer Need To Take Into Consideration?
September 12, 2019

When getting on the property ladder for the first time, there are various costs you need to know about in addition to the cost of the house itself. The experience can be an emotional roller-coaster ride, and there’s no escaping the fact that it is a big commitment. It’s helpful to be as prepared as possible and knowing all the costs associated with your first home is very important. Let’s look at the moving costs for first-time buyers.


This covers the costs for the lender associated with transferring the mortgage sum from lender to solicitor. It typically costs £40-£50. You will also have to pay money to the mortgage broker for arranging the mortgage application.

The Deposit

A first-time buyer will need a deposit between 5% and 10% of the overall purchase price.

The Valuation Fee

This typically depends on the value of the property, but generally falls anywhere between £100 and £2,000. This fee is for when the mortgage assessor makes a formal valuation of the property to ensure it’s worth the amount they are going to lend you. It usually includes only the property value itself, and not any potential future costs that may come up.

The Surveyor’s Fee

As the lender’s valuation only explores the property’s value, you’ll need to have your own survey done. The cost could be from a few hundred up to about £1,000, depending on the depth of the survey. It will help identify any potential issues you might face, such as structural or planning problems.

Stamp Duty Land Tax

If you are buying a property with a purchase price below £300,000 and you and any other person you are buying it with are first time buyers, then you do not pay any stamp duty. If you are buying a property over £300,000 and are first time buyers then stamp duty will be payable.

Legal Fees

You will be required to pay fees to your solicitor for dealing with the purchase of the property on your behalf. It usually falls between £500 and £1,500 plus VAT and should cover the Land Registry fee to register the property into your name. You will also have to pay your solicitor money for search fees, which include water & drainage, chancel, environmental and local authority. The fee for this can be around £100-£300 but depends on the search provider.

Estate Agent’s Fee

This cost is paid by the seller, not the buyer, for the services of the estate agent. It will have been negotiated when the property was put on the market, and usually stands between 1% and 3% of the sale price (plus VAT).

When assessing the average cost for first-time home buyers, you will also need to consider things like removal costs and insurance. The best thing you can do to minimise the stress of your first property purchase is to plan and be prepared, and knowing the costs is an important part of that.

At Bowsers Solicitors we can help and advise you along the way. Get in touch to speak to one of our expert advisors.