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Buying your first home in London is exciting — but many first-time buyers feel anxious about the extra costs that come with the process. Beyond the deposit and mortgage payments, there are a range of fees and charges that can catch you by surprise if you’re not prepared.
In this blog, created in collaboration with Step by Step Financial Solutions and Polish Business Link, we’ll break down the most common extra costs, why they matter, and how to plan for them.\
When you’re calculating how much you need to buy a home, it’s not just the deposit. Here are some of the extra costs you’ll face:
Stamp Duty Land Tax (SDLT) – A government tax based on the property price. First-time buyers can benefit from relief, but if the home costs more than £425,000, SDLT will apply.
Solicitor or Conveyancer Fees – Legal experts who handle contracts, land registry, and the legal transfer of the property.
Valuation Fees – Your lender may charge to confirm the property’s value.
Survey Fees – A surveyor checks the condition of the property, which can save you from expensive surprises later.
Moving Costs – Removal vans, packing materials, and time off work all add up.
Insurance – Building and contents insurance are usually required before your mortgage completes.
For London buyers, where the average property price is above £560,000, these extras can easily run into several thousands of pounds. Planning for them early makes the buying journey smoother and less stressful.
“The deposit is only part of the picture. First-time buyers in London should be ready for legal fees, stamp duty, and other costs. Preparing early avoids nasty surprises.”
— Kasia Makarewicz, Senior Mortgage & Protection Adviser, Step by Step Financial Solutions
Budget Beyond the Deposit – Add 5–10% extra on top of your deposit target to cover fees.
Ask for Clarity – Always request a full breakdown of costs from your solicitor and lender upfront.
Use First-Time Buyer Reliefs – Take advantage of government schemes and stamp duty relief.
Set Up an Emergency Fund – Keep a cushion aside for moving or unexpected repairs.
Get Professional Advice – Mortgage and financial advisers can help you budget more realistically.
First-time buyers in London often underestimate the hidden costs of buying a property. By knowing what’s ahead — from stamp duty to survey fees — and planning accordingly, you can approach the process with confidence.
This content is part of our video series “Buying a Home in London”, created with the support of AI and in collaboration with PBLINK Partner Step by Step Financial Solutions. The goal: to help our members take their first steps toward homeownership in London.