How much should I save on top of my deposit?
Most first-time buyers should save a few thousand pounds on top of their deposit, and more in London or for higher prices. The exact figure depends on the price, whether stamp duty applies, the type of property and the fees you choose.
Build a simple spreadsheet with each cost below. Then add a buffer for the unexpected, such as a delay or a small repair. Our how much can I borrow guide helps you set the price range first.
Timing matters too. Some costs are paid upfront, such as a mortgage booking fee or survey. Others fall due at exchange or completion. Knowing when each payment is due helps you keep the right amount in an easy-access account.
Do first-time buyers pay stamp duty?
In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 and 5% on the portion up to £500,000. If the price is over £500,000, the relief does not apply and standard rates are charged on the whole price.
Everyone buying must be a first-time buyer for the relief to apply. If you buy with someone who has owned a home before, standard rates usually apply. Scotland and Wales have their own taxes and thresholds. Check your figure with our stamp duty calculator.
What legal and survey costs should I expect?
Conveyancing usually involves a legal fee plus disbursements, such as local searches, Land Registry fees and anti-money laundering checks. Leasehold flats often cost more, because there is more legal work. Ask for a fixed fee quote that lists everything.
Your lender's valuation is for the lender. A separate survey tells you about the property's condition:
- RICS Level 2 survey: suits most modern, conventional homes.
- RICS Level 3 building survey: better for older, larger or altered properties.
A survey can reveal problems that help you renegotiate, or walk away before you commit.
What mortgage fees might I pay?
Mortgage costs can include a lender product or arrangement fee, a booking fee and a valuation fee. Some deals have no product fee but a higher rate. Others have a lower rate with a larger fee. The right choice depends on your loan size and how long you keep the deal.
A product fee can often be added to the loan, but you then pay interest on it. A broker fee may also apply; OMB is clear about any fee before you proceed. Comparing the total cost over the deal period is more useful than comparing rates alone.
Do not forget moving day itself. Removal firms, van hire, new furniture and basic items such as curtains and white goods add up quickly. If you are leaving a rented home, check your notice period. You may pay rent and a mortgage at the same time for a few weeks.
What ongoing costs do first-time buyers forget?
Your monthly mortgage payment is only part of the cost of owning a home. Plan for these regular bills before you choose a price:
- Service charge and ground rent: common on leasehold flats and can rise over time.
- Buildings insurance: usually required by the lender from exchange.
- Contents insurance: protects your belongings.
- Council tax and utilities: check the council tax band before you offer.
- Maintenance: boilers, roofs and windows need replacing eventually.
Ask the agent for the service charge history on any flat. Large rises or planned major works can affect your budget.
Should I budget for protection cover?
Many first-time buyers rely on one or two incomes to pay the mortgage. Life insurance and income protection can help keep up payments if something happens to you. Premiums are often lower when you are younger and healthy.
Cover depends on underwriting and policy terms. Review what your employer already provides, such as death-in-service or sick pay, before deciding how much cover you need.
How can I make my savings go further?
A gifted deposit from family can help, and many lenders accept one with a signed gift letter. A Lifetime ISA may add a government bonus if you buy a home within the price limit and follow the rules. Some lenders offer higher income multiples to certain professionals or high earners.
Shared ownership may also help if full ownership is out of reach, though it has its own costs and rules. Our shared ownership mortgages page explains how it works. A broker can show which lenders suit your deposit size and income. See our first-time buyer mortgages page for how OMB helps.
Most of all, start early. Knowing your full budget before you view homes helps you search in the right price range and offer with confidence.
First-time buyer mortgagesClear advice on deposits, borrowing, stamp duty relief and schemes for your first home purchase.
Explore first-time buyersFrequently asked questions
How much money do I need to buy my first home?
You need a deposit, usually at least 5% of the price, plus money for legal fees, searches, a survey, mortgage fees, moving costs and any stamp duty. The extra costs vary with the price and property type. Most buyers should budget a few thousand pounds above the deposit, and more in London.
Can I add fees to my mortgage?
Some lender product fees can be added to the loan. You then pay interest on the fee over the term, which can cost more overall. Stamp duty, legal fees and survey costs normally cannot be added to the mortgage, so you need savings for those.
Is the first-time buyer stamp duty relief still available?
Yes. In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 if the price is £500,000 or less. They pay 5% on the portion between £300,001 and £500,000. Above £500,000, standard rates apply to the whole price.
Do I need a survey as a first-time buyer?
A survey is not compulsory, but it is strongly recommended. The lender's valuation only checks the property is suitable security for the loan. A RICS Level 2 or Level 3 survey checks the condition of the home and can reveal costly problems before you commit.
Can my parents help with my deposit?
Yes, many lenders accept gifted deposits from family. The giver usually signs a gift letter confirming the money is not a loan and they have no stake in the property. Lenders and solicitors will also check the source of the gifted funds.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.