Buying your first home is an exciting time for first-time buyers. You have saved your deposit, secured a mortgage in principle and started viewing properties. Now it’s time, you have had your offer accepted and you need to secure that concrete mortgage deal.

But whilst it’s an exciting time, it can also cause a level of anxiety as first-time buyers navigate the mortgage and home-buying process for the first time. In addition to the home deposit sum, it is often advised that buyers consider accounting for approximately 10% extra to cover additional fees of getting into your new home. Although securing a deposit is a milestone in your property journey, the reality is that the deposit is only part of the picture.

Richard Kendall are on hand to reassure first-time buyers and ensure they are not surprised by costs to consider when buying a home in the UK. Understanding these extra costs beforehand can help you budget properly and avoid unnecessary stress during the process.

Here is a clear breakdown of the unexpected costs of buying a home that you need to factor in.

1)   Conveyancing & Legal Fees

You will need the help of a licensed and accredited conveyancer when purchasing any property in the UK. First-time buyers should account for the legal fees involved in instructing a conveyancer or solicitor. On average, buyers can be working through a property purchase for up to 5 months after the initial offer acceptance on their new home. Along the way, there will be additional costs that can include:

• Legal fees (covering the time and expertise of your solicitor)
• Property searches (including local authority, water and drainage, and environmental searches)
• Stamp Duty tax (applicable to first-time buyers purchasing property valued at £250,000+)
• ID and Anti-Money Laundering checks
• Bank transfer fees

When considering the extra costs presented by legal fees and conveyancing, it is important to consider the additional factors that could impact your fees when purchasing properties, as well as when working with different conveyancers or solicitors. Factors affecting this cost include the property price, ownership status (freehold vs leasehold), and property type.

2)   Survey & Valuation Fees

Whilst most first-time buyers are aware of surveys when entering the property buying process, they may not be aware of the vast array of options and nuances that can cause costs to creep up. Property surveys and valuation reports can be divided into three simple categories: ‘Mandatory’, ‘Non-Mandatory’, and ‘Specialised’, each with their own reasoning, benefits and, crucially, additional fees to budget for.

‘Mandatory’ surveys:

• Mortgage Lender Valuation: Whilst this is not legally required for the sale of the property, if the first-time buyer is purchasing through a mortgage, the lender will require a valuation survey on the property to be completed. This process is required to assure the lender that the property value is in line with the value of the loan.
• Home Buyers Report: If purchasing or selling property in Scotland, sellers are required to provide a home buyers report, including a single survey (condition report), an energy report, and a property questionnaire.
• EPC Report: Sellers must provide an Energy Performance Certificate for all buyers in the UK.
• CON29M Coal Mining Report: If purchasing property in former mining areas, solicitors may legally require a coal mining report to identify risks from future, current or past mining activities.

‘Non-mandatory’ but recommended surveys:

• RICS Home Survey Level 2 (Homebuyers Report): While not legally mandated, a Level 2 Homebuyers Survey is highly recommended as a professional, but not intrusive, inspection of the property’s roof, walls, floors, windows, and services. Whilst coming at an extra fee for the buyer, these checks can identify defects that could incur much higher costs down the line, for example detecting faults in the roof condition that require costly repairs.
• RICS Home Survey Level 3 (Building Survey): If purchasing an older property, it might be recommended that buyers request a Level 3 survey for a more comprehensive inspection of windows, roof space, floors, drainage, and grounds to identify defects and concerns.
• New-Build Snagging Survey: New-build properties are a popular choice for first-time buyers seeking their first steps onto the property ladder. New-build snagging surveys are a detailed inspection of the property to identify the quality of workmanship, possible defects or incomplete finishes. This can cover everything from chipped skirting boards and paint flaws to structural problems and insulation defects, giving valuable peace of mind to buyers.

Specialised Surveys:

If any of the mandatory reports raise concerns, buyers may be asked to solicit further specialised surveys, including:

• Damp and Timber Report
• Drainage Survey
• Structural Survey 

3)   Higher Lender Fees

First-time buyers who are borrowing a higher sum relative to the property value may also incur a ‘Higher Lender Charge’. Typically, these are incurred by buyers borrowing more than 90% of the property value. This means if you are purchasing a property with a 5% deposit and a 95% mortgage deal, you may see additional charges, as this is considered a ‘higher risk’ loan for lenders.

Richard Kendall works with a team of expert mortgage advisers who are on hand to guide you through the important decisions when buying your first home. Our professional advisers have access to the whole of the market, making them perfectly placed to find you the best deal for your unique requirements.

4)   Removals Costs

Whether first-time buyers are moving out of a family home or rented property, it is recommended that they also budget for the physical cost of moving belongings, including packing materials, professional services, van hire, etc. The costs involved in removals vary depending on the distance between properties, packing services and volume of goods being transported, so it is recommended that you complete cost comparisons to avoid unexpected bills on the day of completion.

There are many ways to reduce costs to stay within a budget, for example:

• Timing: Moving midweek with professional services or hired transport is often cheaper than weekends.
• Declutter: Taking time ahead of your move to declutter unwanted items can reduce the cost of transport.
• DIY: Packing your own belongings and using your own transport where possible can be a great way to reduce costs by avoiding professional removal services.

5)   Buildings & Contents Insurance

First-time buyers will typically be required to provide proof of buildings insurance when exchanging contracts for the property sale.

Building insurance will cover the structure of your new home, including the roof, walls and floors, as well as any permanent fixtures, like a kitchen or bathroom, against risks like fire, flood and theft. If first-time buyers are unsure about what is covered by their building’s insurance, a common analogy is that buildings insurance covers everything that would stay put if the house was turned upside down.

6)   Redecorating, Repairs, Furniture & White Goods

Once you are in your home, congratulations, some buyers may find more costs in the form of repairs or home improvements. For example, even if the property is in good condition, you may want to repaint walls, replace carpets or update flooring to make it feel like your own. It is a wise decision to keep a small budget for these costs when planning your finances for purchasing property.

To discuss your options, get in touch with any of our local offices or email This email address is being protected from spambots. You need JavaScript enabled to view it.

 As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments. This site is intended for UK residents only and the laws of England are applicable.

How Richard Kendall Mortgage Department Can Help Navigate Unexpected Costs Of Buying Your Home

When preparing to take your first steps onto the property ladder, our in-house mortgage advisers are a friendly face to support you along the journey. Our experts know how important it is to have the right knowledge at your disposal, and finding the right mortgage deal for your needs and circumstances is a significant step in making your budget work for you.

Start your first-time buyer journey with Richard Kendall Estate Agent.