Are you looking to buy your first home? While it’s certainly a very exciting time, it can also be overwhelming with all the many things you need to sort out. Concentrating on serious things like offers and interest rates, and daydreaming about your future interior design, does mean that sometimes other things can get missed in the homebuying process.
For our First Time Buyer Index 2024*, we surveyed 500 first-time buyers, and 2,000 prospective first-time buyers across the UK. We asked them about the process they went through, as well as the costs they’ve seen as a result of buying a home to provide you with a head start.
So, to make sure you’re ready for this journey, we’ve prepared this list of additional costs when buying a house.
When buying a house, prospective owners will need to budget for more than just the house itself.
This is due to the additional costs on top of securing a home, having it signed over to your name, and dealing with any complications that may arise.
According to our research*, the average first-time buyer spends around £3,700 on top of their deposit and stamp duty fees (if this applies) when buying their first home. So, where do these costs come from?
It is a necessary part of the process to instruct a conveyancing solicitor (a conveyancer) to handle all of the legal proceedings. They will be there to communicate directly with the seller’s solicitor, handle the land registration, as well as arranging the necessary searches and securing as much documentation about the home as possible before you move in.
Our research* shows that solicitor fees have an average cost of £654. Though, in some cases, these fees could be more if additional work is needed, such as dealing with covenants and other legal red tape.
Conveyancing fees are usually paid alongside solicitor fees, too. These have an average cost of £496 and are used to cover things such as a valuation.
Our research* shows that average mortgage fees can add up to £515 across the UK.
As a first time buyer, the use of a mortgage broker is a good place to start when looking to buy your home. Brokers can help with arranging a mortgage and will be on-hand to answer any questions that may arise throughout the process.
To find out more, read our blog on 10 ways a mortgage broker can help you buy your home.
With all the administrative work (nearly) done, it’s important to consider how you’ll get your actual belongings into your new digs.
While you can accomplish this on your own, it’s a lot of backbreaking work for one or a few people, and can be tricky if you have dependants to care for also. For this reason, many choose to hire a moving company, with an average of £409 spent on moving fees*.
In addition to all these mandatory, sometimes hidden costs of buying a home, there are some supplementary fees that a first-time buyer will pay. Totalling £421, these costs may cover things like life and building insurance, advice on will and testaments, and even small things like post redirection.
When the buying process is over, and you have finally moved into your new home, there are other fees to plan for. Our research* shows that the average first-time buyer spends roughly £10,736 in their first year of home ownership.
Included in that cost could be:
You can find out more about our mortgage options for first time buyers here.
You can also download our First time buyer index report for more useful information when you're buying your first home.
We also have a range of savings accounts that are great for planning for that big purchase.
* Source: Research conducted, on behalf of Aldermore bank, by Opinium between 30 May – 14 June 2023, with a nationally representative sample size of 2,000 prospective first time buyers and 500 actual first time buyers who bought since May/June 2021.
Subject to status. Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments.