Buying a home is a big milestone for many people in the UK. Most first-time buyers focus on saving a deposit which is usually 5 – 20% of the property’s price. The deposit is just the start, there are many other costs that can make buying a home much more expensive than it first seems.
The mortgage is the next big expense, the deposit reduces what you borrow but you still need to pay back the loan with interest. Even a small change in interest rates can make monthly payments higher, so it’s important to plan carefully. Choosing the right mortgage type whether fixed or variable, can also affect how much you pay over time.
Stamp duty is a tax you must pay when buying a property over a certain price. First-time buyers get some relief on properties under £425,000, but for more expensive homes stamp duty can add thousands of pounds to the cost. It’s a one-off payment that must be budgeted alongside other fees.
Legal costs and surveys are another part of buying a home. Conveyancers handle the paperwork while surveys check the property for problems like damp or structural damage. These costs can range from hundreds to thousands of pounds, but skipping them can lead to bigger problems later.
Owning a home also means paying for maintenance and repairs. Unlike renting you are responsible for fixing things like boilers, roofs, or plumbing. Older homes can need more work, so it’s wise to set aside some money each year for unexpected repairs.
Finally, don’t forget running costs like council tax, utility bills, and home insurance. These can add hundreds of pounds to your monthly spending. All these costs show that buying a home is about much more than just saving a deposit. Planning for everything ahead will make owning a home much less stressful.
