Saving for your first home

It’s a good idea to save more money than your deposit. This means that you’ll be prepared to cover the fees that may occur during the house buying process. 

Stamp Duty

Stamp duty is the tax you pay on the land you’re purchasing. So, rather than being a set price, stamp duty is calculated based on the cost of the house and only applies to homes above a certain value. Read our stamp duty guide for more detailed information.

Valuation fee 

Before buying your new home, you’ll need to have it valued. This proves to the lender that the property is worth the amount they are going to lend you. The valuation fee you pay will be to cover this cost, however, you may find that the cost of this valuation is included on some mortgage products. Usually the valuation fee can be £250+ dependent upon the cost of your home. 

Surveyors fee 

Request a homebuyer or structural survey if you want to learn more about the property you’re buying. Where a property valuation tells you a property’s worth, a homebuyer or structural survey will provide detail on the condition of the house, such as if the roof requires repairs. If any large issues arise out of the survey, it will give you power to negotiate your offer price. You can get varying levels of surveys at different prices and they aren’t compulsory to the house buying process. Surveyors fees can typically cost £250+ depending on the cost of your home. 

Completion/arrangement fee

Your completion fee, sometimes referred to as an arrangement fee, is paid upon completion of your mortgage and is the fee to acquire the mortgage product you have selected. Not all mortgages have a completion fee, while others include the fee as part of the mortgage. We recommend speaking to a mortgage adviser to get a clear understanding of your full mortgage cost. The cost of a completion/ arrangement fee can be anywhere from £0-£2,500, depending on the application type. 

Reservation/booking fee

Much like booking fees encountered elsewhere, a reservation fee (or booking fee) is a cost paid upfront with your application to secure your mortgage product while your application is processed. This is usually £100 - £200. 

Legal fees

Legal fees for buying a house depend on the property’s price, location and complexity of the transaction. However, they usually range from £800 to £1,500 in the UK. Legal fees are normally paid to a solicitor or licensed conveyancer who handles the legal parts of your home purchase.

There will be other fees to think about such as removals costs of your furniture, you may want to redecorate or make improvements to your new home. Visit our average cost of moving home page to find out more. 

It depends on your savings goal, so it really is an individual timeline. However, most people find it easier when they stick to good savings habits. Below are some of our tricks to help you save faster, to see more visit our Gen Z savings tips. 

It’s best to begin by reviewing your current financial situation. Having an idea of your financial situation will let you start to piece together how much you will need to save to afford your first home. 

A key part of saving for a house is making sure you keep on top of your savings. Try giving yourself a manageable saving goal each month, putting it away as soon as you’ve been paid to avoid the temptation to spend it.

• Shop around for the best utility deals.
• Change accommodation, downsize or live with parents. 
• Pay for things upfront and avoid high purchase.
• Cancel unused subscriptions.
• Sell unwanted clothes or other items.
• Put money away as soon as you get paid.