If you’re saving up to buy a home, you’ve probably focused on the deposit. That’s natural — it’s the biggest single number. But what I’ve noticed over years of covering the UK property market is that the costs people don’t see coming are the ones that cause the most stress. For a £250,000 terraced house bought by a first-time buyer with a 10% deposit, the total cash needed isn’t £25,000 — it’s £29,250 once all fees are included. That extra £4,250 represents 1.7% of the property price, and it’s money you need on completion day, not a week later.
These figures aren’t scare tactics. They’re the real numbers that determine whether your offer is realistic. The typical buyer faces between 2% and 5% of the property price in additional costs on top of the deposit. For a £300,000 property, that’s an extra £6,000 to £15,000 you need to have ready. Here’s what you actually need to know.
What Closing Costs Really Cover
I want to be clear about one thing right away: these aren’t optional extras. You can’t skip the survey to save money and hope for the best — that’s how people end up with £20,000 structural repairs they never budgeted for. The costs above are the baseline for a straightforward purchase. If you’re buying a leasehold flat, you’ll also face service charges of £100–£500 per month and ground rent of £50–£500 per year.
My first move when helping someone plan a purchase is always the same: get a full breakdown from a solicitor before you make an offer. Most will give you a fixed fee quote that includes disbursements. That way, you’re not guessing. If you’re unsure where to start, speaking with a property lawyer early can save you from nasty surprises later.
How Much You Actually Need — Three Real Examples
Let me walk you through three scenarios from the data. These aren’t hypothetical — they’re based on actual cost breakdowns for different property types and prices. The difference between them shows why you can’t rely on a single rule of thumb.
For a £250,000 terraced house bought by a first-time buyer with a 10% deposit, the total cash needed is £29,250. That’s £25,000 for the deposit plus £4,250 in fees. The fees break down as roughly £1,500 for solicitor and searches, £500 for a HomeBuyer Report, £1,000 in mortgage fees, and £1,250 for removals, insurance, and other moving costs. Stamp duty is £0 because the property is under £300,000 and it’s a first-time buyer purchase.
Now consider a £350,000 modern flat, also a first-time buyer with a 10% deposit. The total cash needed jumps to £42,750. The deposit is £35,000, and the fees beyond that are £7,750. The big difference? Stamp duty. On a £350,000 property, a first-time buyer pays 5% on the £50,000 above £300,000 — that’s £2,500 in stamp duty alone. The saving from first-time buyer relief on this purchase is £5,000 compared to standard rates.
For a £500,000 period property, the picture changes again. Total cash needed is £67,650 — £50,000 deposit plus £17,650 in fees. Stamp duty here is £10,000 (5% on £200,000 over £300,000). The survey will likely be a full Building Survey at £1,000–£1,500 because period properties have more potential issues. And if you need a specialist survey for damp or electrics, add another £300–£600.
What I’d do in your position: work backwards from the most expensive realistic scenario for your price range. If you’re looking at £350,000 properties, don’t budget for £35,000 — budget for £43,000. If you come in under, that’s a win. If you don’t, you’re not caught short. And if you’re buying a leasehold, factor in those ongoing service charges from day one. A real estate lawyer can review the lease terms before you commit.
Where Buyers Get Tripped Up
I’ve seen the same mistakes come up again and again. They’re not about being careless — they’re about not knowing what questions to ask. Here are the four that cause the most trouble.
Underestimating Stamp Duty After April 2025
From 1 April 2025, the nil-rate threshold for standard Stamp Duty Land Tax returns to £125,000, down from the temporary £250,000 threshold. That means a £400,000 standard purchase will incur £10,000 in stamp duty — 2% on £125,001–£250,000 and 5% on £250,001–£400,000. First-time buyers still get relief up to £300,000, but if you’re not a first-time buyer, your stamp duty bill just got significantly larger. The key here is timing: if you complete before 1 April 2025, you save thousands. If you complete after, you need that money ready.
Ignoring the 3% Surcharge on Second Homes
If you’re buying a buy-to-let or a second home, a 3% surcharge applies on top of standard rates. For a £300,000 buy-to-let purchase, total stamp duty with the surcharge is £14,000 — that’s £9,000 more than a standard purchase. This catches a lot of accidental landlords who inherit a property or keep their old home when they move. If you’re in that situation, you need to factor that £9,000 into your cash position before you exchange contracts.
Skipping the Right Survey to Save £500
A basic Condition Report (Level 1) costs £300–£500. A HomeBuyer Report (Level 2) costs £400–£900. A Building Survey (Level 3) costs £700–£1,500. I’ve seen buyers choose the cheapest option on a 1920s semi and then discover £15,000 of roof work after moving in. The right survey depends on the property: a new-build flat probably only needs Level 2, but a Victorian terrace needs Level 3. The £500 you save on the survey can cost you ten times that in unexpected repairs. If you’re unsure which level you need, a property lawyer can advise on what’s standard for your property type.
Forgetting the Moving Costs Add Up
Removal companies charge £450–£1,400. DIY removal supplies cost £100–£300. Address changes, reconnection fees, and other moving costs add £200–£500. Council tax on your new property will be £80–£220 per month, and internet/TV setup costs £30–£60 per month. These aren’t huge individually, but together they can easily hit £2,000. That’s money you need in your current account, not tied up in the deposit. A financial advisor can help you build a realistic moving budget that accounts for these smaller costs.
→ Scroll right to see all columns
| Property Price | Deposit (10%) | Fees Beyond Deposit | Total Cash Needed |
|---|---|---|---|
| £250,000 | £25,000 | £4,250 | £29,250 |
| £350,000 | £35,000 | £7,750 | £42,750 |
| £500,000 | £50,000 | £17,650 | £67,650 |
How to Budget and Protect Yourself
Writing about topics like this takes real time and research. If you buy something through an Amazon link on this page, I may earn a small commission — at no extra cost to you. It’s one of the things that makes it possible to keep BritWealth free to read. I only link to products that are genuinely relevant to the article.
The difference between a stressful purchase and a smooth one often comes down to how early you start planning. Here’s the process I recommend.
Get a Full Solicitor Quote Before You Offer
Your solicitor’s fee is just the start. You also need to budget for local authority searches (£100–£400), water and drainage searches (£30–£80), environmental searches (£40–£80), and the Land Registry fee (£20–£910 depending on the purchase price). Most solicitors will give you a fixed fee that includes these disbursements if you ask. The total solicitor and conveyancing costs typically range from £1,500 to £3,000. Get that number in writing before you make an offer, and add it to your cash total immediately.
Choose the Right Survey for Your Property Type
Don’t default to the cheapest survey. A HomeBuyer Report (Level 2) at £400–£900 is fine for a modern property in good condition. But for a period property, a Building Survey (Level 3) at £700–£1,500 is non-negotiable. If the survey reveals issues, you can renegotiate the price or walk away. If you skip it, you own those problems. For peace of mind, a smoke alarm and carbon monoxide alarm are cheap additions to your moving-in checklist that every home should have from day one.
Factor in Mortgage Fees and Early Repayment Penalties
Mortgage arrangement fees range from £0 to £2,000. Some lenders let you add this to the loan, but that means paying interest on it for the full mortgage term. Valuation fees are £150–£1,500. Broker fees are £0–£500. And if you overpay your mortgage in the early years, you could face an early repayment penalty of 1% to 5% of the overpayment. If you think you might overpay — for example, if you expect a bonus or inheritance — choose a mortgage with no early repayment charge, even if the rate is slightly higher.
Plan for the Stamp Duty Deadline
For England and Northern Ireland, stamp duty must be paid within 14 days of completion. For Scotland, LBTT returns are due within 30 days. For Wales, LTT must be paid within 30 days. Your solicitor will usually handle this, but the money needs to be in your account before completion. If you’re buying a property that completes near a weekend or bank holiday, the 14-day window can feel very tight. Make sure your solicitor confirms the exact deadline and the amount at least a week before completion.
- 1Get a solicitor quote including all disbursementsAsk for a fixed fee that covers searches, Land Registry, and CHAPS transfer. This gives you a single number to budget for, not a range.
- 2Book the right survey for your property typeLevel 2 for modern homes, Level 3 for period properties. Add £300–£600 for specialist surveys if the property is old or has known issues.
- 3Confirm stamp duty amount and deadline with your solicitorFirst-time buyers pay 0% up to £300,000. Standard rates apply from £125,000 after April 2025. The 3% surcharge applies to second homes.
- 4Add up all moving costs and keep that cash liquidRemovals (£450–£1,400), address changes (£200–£500), and initial council tax/internet bills (£110–£280 per month) all need to be in your current account, not your deposit.
Frequently Asked Questions
Can I add stamp duty to my mortgage? ▾
What happens if I can’t pay stamp duty on time? ▾
Do I need a survey if the mortgage lender does a valuation? ▾
Are solicitor fees refundable if the sale falls through? ▾
How much cash do I need for a £300,000 property as a first-time buyer? ▾
What is the 3% stamp duty surcharge and who pays it? ▾
The single most important thing you can do is get a full cost breakdown from a solicitor before you make an offer. That one conversation will tell you exactly how much cash you need, when you need it, and what happens if you’re late. Don’t guess — ask. If this was useful, you might also want to read essential steps to minimise financial risks when buying a home.
Sources and Further Reading
Understanding property maintenance costs when buying a home — A practical guide to the ongoing costs of homeownership beyond the purchase price.
UK house buying costs calculator. WeMoveTogether, 2024.
Cost of buying a house guide. Compare My Move, 2024.
UK property buying costs breakdown. UK Calculator, 2024.
