Costs That First Time Buyers Don’t Think About


First time buyer concept.



We all know that buying a house is one of the priciest things you will go through. In fact, it’s often the reason why a lot of people are delaying buying their first home till later in their life. And they are renting through their 20’s  while they put money aside in their savings for their new humble abode. But when it’s time to buy their first house, a lot of people are left shocked at the costs they are facing. And they sometimes fall short of buying the property as they don’t have enough to cover everything. Therefore, you need to make sure you know what to expect when buying your first house. That way, you can put the right funds away towards your new humble abode. In fact, here are some costs that first-time buyers don’t think about, but you should be putting money aside for if you want to buy your first house.


Arrangement fee for your mortgage

A lot of people concentrate on getting money together for their deposit. After all, you need at least 10-20% of the property price to secure a mortgage. And therefore, people spend time saving towards this amount. But a lot of first-time buyers don’t realize there will be other costs for taking out a mortgage. And one that can leave you feeling the pinch is the arrangement fee. After all, a lot of mortgage providers will charge this for the paperwork that needs to be processed when arranging the mortgage. And any other things that need sorting for the mortgage product. Depending on the mortgage product you are going for, it can sometimes cost you hundreds. And it’s a large payment which you might not have put money aside for. Therefore, always ask at the appointment how much the arrangement fee will be for the mortgage. And that way, you will have no hidden surprises at the end when they ask for the funds. And remember to look at different providers as some can remove this fee if you go with them. In fact, if you have other products with them such as life insurance or even a current account, they might skip the fee!


A valuation fee for the property

When you go to discuss getting a mortgage for a property, they will want to know how much the property is currently up for. For one thing, it can help them work out how much mortgage you will need. And it can also help them to figure out if it’s possible for you to afford the property. But it’s also so they know the property’s worth. Despite the estate agent’s valuation, the mortgage lender will want to do their own valuation of the property. After all, they need to know it’s worth the amount you want to borrow. That way, if you don’t keep up with the payments, and they had to repossess the property, they could get their money back. And you will be charged a valuation fee for them to be able to do this. In fact, it can be several hundred for the valuation of the property. And it’s an amount a lot of people don’t take into account when saving for their new home. Of course, you could arrange your own valuation as long as the paperwork is sent to your mortgage provider. Doing it yourself can make it cheaper so you aren’t left feeling the pinch. After all, you can get in touch with local valuers to find a low price. Not only this but you might want to get it done at the same time as a survey. After all, this can bring up any repairs or maintenance you should be doing on the home. And it can stop you making a big error going for a property which has a wealth of problems. Therefore, doing this at the same time can ensure you just pay one cost to put yours and the mortgage provider’s mind at rest.


Conveyancing fees

It’s easy to forget about solicitor fees when you are buying your first home. After all, a lot of people make the error of thinking this is all done via the estate agent or mortgage provider. But it’s a necessity that you have a solicitor who deals with all the legal side of buying a property. After all, they will make the necessary arrangements to ensure the property is transferred to your name. And they will do background checks on the house to ensure it’s a house that is worth buying. It can cost a small fortune for a solicitor. In fact, you can expect to pay around a thousand for their services. Of course, you can look around to compare different solicitors fees for buying a house first time buyer. It can sometimes be cheaper for your first home, so ensure you tell them about this. And make sure you put the money aside so you can afford to get a solicitor for the house move. In fact, ask for a breakdown of costs before you go any further to ensure you have no sharp shocks down the line.


Home insurance

If you have been renting for the last however many years, it’s likely you would have been paying out for contents insurance. After all, it would protect your belongings if anything happened to them. But now you want to buy your first home, you will also need to pay out for home insurance. After all, you will be now in charge if there is an issue with your home. For example, if the roof got damaged, or there was a bad flood, you would need to make a claim. And a lot of mortgage providers will need proof you have set up home insurance before completing the mortgage. Therefore, you need to put money aside for this cost when buying a home. And remember that you can often pay monthly for this insurance, so take a look at your options.

And remember to get your finances in good order before taking any further steps towards purchasing your first home.




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  1. says

    I will start living on my own soon and I just want to say thank you for sharing this. It’s a big help. As much as possible I want everything to a smooth process but it might be quite stressful but I’m glad I’m having one soon. Anyways, good read indeed!

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