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Setting Your Budget as a First-Time Home Buyer

When investing in property, whether as an experienced buyer or a first-timer, you're strongly encouraged to have a smart way of working your budget as a lot of fees are involved from getting a mortgage to associated services.

As everybody says, buying your own house and stepping onto the property ladder can quite costly, although the big picture can be worth the while. What you just need to do is carefully plan everything according to your current situation, get your research work done, and calculate, so you can have an idea how much you’re letting yourself into.

When estimating home-buying costs, do not fail to factor in at least an extra 10% of the total costs just to make sure you won’t come short of funds. Besides the property’s price, you might also want to consider related expenses while the transaction is in the process.


To give you a proper heads up, conveyancing may cost from a couple of hundred to a thousand pounds depending on two things: how much your solicitor charges in basic fees and the disbursements as they carry out tasks for you. In order for you to properly set your budget, make sure you search and ask for a few conveyancing quotes to compare and choose from.


From roughly 1% of the mortgage amount, this is normally charged upfront or taken out of your monthly repayments – depending on your agreement with the lender. To be sure, seek proper advice from a financial expert, your trusted bank’s representative, or a reputable mortgage broker.

Mortgage Indemnity

This covers you in case your loan value happens to be higher than the property’s. This actually secures the lender in case you’re unable to pay the mortgage off.

Estate Agent Fees

If you’re selling your property to afford this one you’re buying, you’ll need to have the house sold through an estate agent who would most likely get their fees at 

a certain percentage of the sale proceeds.

Stamp Duty Land Tax

No one is exempt from this except when the property is lower than the set amount bracket. Stamp Duty generally ranges from 1% to 7% of the final selling price.


This is going to take a huge chunk of your expenses, especially if you have heavy stuff to move like furniture. You will have to foot a hefty sum for the moving truck and the staff to assist you.

Renovation and Remodelling

Maintenance and repair work may be covered by the seller during negotiation, but remodelling the property is something you have to set thousands of pounds for.

What else should you expect?

As soon as you have moved, you will need to set your budget for the recurring household expenses such as utilities, council tax, home insurance, ground rent & service charge (if you bought a leasehold property) and car park (generally paid once a year to the local council.