How much does it cost to buy a house?
Key takeaways
Monthly mortgage payments vary depending on the amount borrowed, mortgage term and the interest rate.
Mortgage fees need to be taken into account when calculating the affordability of a particular mortgage.
First-time buyers need to pay stamp duty on properties costing more than £300,000.
Buyers also need to pay for surveys, conveyancing and moving costs.
How much does a first-time buyer need for a deposit?
Buying a home is a huge dream for many adults, but knowing where to start can often feel pretty overwhelming as it will likely be one of the biggest financial commitments you will make. While saving for a deposit is often the main focus, it’s only part of the cost, so it’s important to understand what you will need to budget from the start to help make the whole process feel manageable.
As a first-time buyer, it is typically recommended to try and save a deposit of between 5% and 25% of the price of your desired property. Generally, the bigger your deposit, the lower your loan-to-value (LTV) ratio will be, which can in turn help you access more competitive mortgage rates.
But what does this look like in practice? Well, with the cost of the average UK home at around £270,000 (according to Office for National Statistics, April 2026), if you were looking to save a 10% deposit you would need to save £27,000. The higher your deposit, the lower your monthly interest payments are likely to be as you’ll be borrowing less money from the bank.
Over time, you will start to build equity in your home. This meansthat with each mortgage payment made, you'll gradually own more of your property and owe less money to your lender.The cheapest mortgage deals are often available to borrowers with a loan-to-value (LTV) of 60% or less. For more stats, check out our dedicated first-time buyers statistics page.
Our figures show that the typical first-time buyer put down a deposit of £75,072 in 2025.
How much will monthly repayments be for a first-time buyer mortgage?
Affordability is key when looking to purchase your very first home, and as a result it’s important to understand what your monthly repayments could look like before you start viewing properties. Remember, your mortgage payment is only one part of your monthly budget, so it’s worth considering other regular costs such as household bills, insurance and everyday living expenses too. The typical monthly mortgage payment for a first-time buyer is determined by:
How much you borrow
The duration of the loan term
The interest rate you are charged
The more you borrow, the more you will need to repay over the duration of your mortgage term. However, if you opt for a longer mortgage term, your monthly payments will tend to be lower.
Our latest data highlights that the average mortgage term agreed by a first-time buyer stands at 29 years and 1 month in 2025.
Whilst a longer mortgage term may mean cheaper monthly repayments, a longer mortgage term will mean paying interest on the debt for longer resulting in paying more in interest overall.
Interest rates will also have an impact on your monthly repayments. Interest rates determine how much it will cost you to borrow money from your lender. When rates are higher, your monthly mortgage payments are likely to be higher, while lower rates can typically mean lower repayments.
Most first-time buyers choose a repayment mortgage, where each monthly payment covers both the interest charged and a portion of the amount borrowed. By the end of the mortgage term, you'll have fully repaid the loan and own your home outright.
Interest-only mortgages work slightly differently. Your monthly payments only cover the interest, meaning you'll still owe the original loan amount when the mortgage ends. These mortgages are now rarely offered to first-time buyers due to stricter lending rules.
How do mortgage interest rates work?
There are various types of interest rates on mortgages:
Fixed rate
With a fixed-rate mortgage, the interest rate remains the same throughout the entire deal period. This is typically two to five years, although it is possible to get 10-year fixed rates too.
Variable rate
If you have a variable rate mortgage the lender can adjust it up or down according to economic circumstances, such as changes in the Bank of England’s base rate.
Tracker
A tracker mortgage is a variable-rate mortgage that tracks the Bank of England base rate as it moves up and down. So, if the base rate changes, your mortgage rate will change too. You can monitor how base rate changes will affect your mortgage repayments by using our base rate calculator.
Capped
A capped mortgage is a variable rate that will not rise beyond a specified level.
Discounted variable rate
A discounted variable-rate mortgage tracks the mortgage lender’s standard variable rate. This means that, if the SVR goes up or down, so does your mortgage interest rate.
Even if the Bank of England base rate remains the same, your mortgage could become more expensive if your lender decides to increase its SVR.
Most buyers opt for fixed-rate mortgages as this means you will know for sure how much your payments will be providing certainty for a set period of time.
Once your fixed-rate deal ends, you'll normally move onto your lender's standard variable rate, which is often more expensive. Because of this, many borrowers choose to remortgage at this point to secure a new deal.
When you obtain a mortgage quote on MoneySuperMarket, you can see details of the total cost of the loan over its term, with the fees included.
How much are mortgage fees?
In addition to saving for your house deposit, you will often face additional homebuying costs, such as mortgage fees which are important to factor into your budget when assessing how affordable a mortgage is, or comparing one mortgage with another.
Some mortgages are advertised as “fee free” – but these often come with higher interest rates, so it's important to look at the overall cost rather than focusing on one fee.
Here are the main mortgage fees to consider:
Arrangement fee
A mortgage arrangement fee is usually a flat sum from £200 up to £2,000. A handful of mortgages, usually buy-to-let mortgages, charge a percentage arrangement fee.
An arrangement fee is what you pay for the mortgage product itself. You’ll usually be given the option of adding the arrangement fee to your mortgage.
While this means you can avoid an up-front cost, it will increase your overall payments, as you will pay interest on it for the duration of your mortgage.
Booking fee
Some lenders combine booking and arrangement fees, whereas others charge them separately. If it is an additional fee, it’ll usually be between £50 and £300.
A booking fee is for the cost of applying for the mortgage. With many lenders, this is not refundable. This means that, even if you decide not to go through with the mortgage, you’ll still have to pay the booking fee.
Valuation fee
Valuation fees are normally somewhere between £100 and £1,000. The valuation fee is for when the mortgage provider assesses the value of your property to make sure it’s worth the amount it’s going to lend you.
CHAPS
A CHAPS (Clearing House Automated Payment System) covers the cost of your mortgage provider sending funds to your solicitor. It’s usually about £50.
Mortgage account fee
You may also have to pay for the administration costs for your mortgage lender to run your account. This generally costs up to £300.
Mortgage broker fee
If you use a mortgage broker to arrange your mortgage, they should explain their fees to you. Some brokers charge flat fees of about £200 or so, while others are fee-free and get paid commission by the lender instead.
Legal fees
You might also have to pay for the mortgage lender’s legal costs. This is usually between £500 and £1,500. This can also include the cost of the Land Registry fee.
Other home moving costs
As I’m sure you’re starting to realise, the deposit isn't the only upfront cost you'll face. Before moving day, you'll also need to budget for several other expenses that many first-time buyers don't always think about, including:
Survey fees
Conveyancing fees
Stamp Duty (where applicable)
These costs can quickly add up, so building them into your savings plan early can help avoid any unexpected financial surprises.
Survey fees
It’s advisable to get a survey or homebuyer’s report when you buy a property. Depending on how detailed it is, the cost could be anywhere up to £1,000.
It covers the property value, as well as any potential issues you might face, such as structural problems or planning problems. For more information, read our guide on how to choose the right survey.
Conveyancing
Conveyancing fees are normally from about £400 to £1,500. ‘Conveyancing’ refers to the legal process of transferring ownership of a property or piece of land from the seller to the buyer.
Stamp duty
Stamp duty is the tax you pay on property and land transactions, which can be as high as 12%.
For first-time buyers, there is no stamp duty to pay on properties worth up to £300,000.
For properties worth £300,001 or more, for the first £300,000, the stamp duty rate is 0%; and from £300,001 to £500,000, the rate is 5%.
If your home costs more than £500,000, then you’ll pay the same amount as someone who has bought property before, as per the table below:
Property value | SDLT rate |
|---|---|
Up to £125,000 | Zero |
The next £125,000 (the portion from £125,001 to £250,000) | 2% |
The next £675,000 (the portion from £250,001 to £925,000) | 5% |
The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
The remaining amount (the portion above £1.5 million) | 12% |
From Gov.uk correct 28/4/2025 Note this only applies to first-time buyers in England and Northern Ireland. The rules are different for Scotland and Wales.
How much will the moving process cost?
Getting the keys to your first home is an incredible achievement, but it’s important to remember you’re not quite finished with the process yet! Moving into your new home can cost you as little or as much as you’d like and will mostly depend on how much stuff you need to move and on how far you’re going. If you use a professional removals firm, it could cost anywhere from £250 for a local move for a one-bed flat, to more than £1,000 for a long-distance move, so it’s important to also factor these costs into your budget too.
How much does home insurance cost?
Most lenders require you to have building insurance as part of the mortgage agreement. However, there is no obligation to buy this from your mortgage lender.
It’s often a good idea to buy contents insurance as well to help protect your belongings against theft, accidental damage or other unexpected events. The cost of insurance can vary depending on the level of cover you want, as well as where your home is located. Using websites like MoneySuperMarket can be great at helping you find the best deal and cover based on your needs and budget.
To find out more, read our guide to insuring your first home.
What are the costs of owning your home?
Once you’ve moved into your home, that’s where the ongoing costs of owning a property come into play. There will be a number of bills and expenses you will need to budget for, often on a monthly basis. These may include:
Utility bills: Gas and electricity, water, broadband and pay TV
Council tax: This will depend on which band your property is in and where you live
Maintenance: The cost of repairs and improvements
If you’re looking to take out your first mortgage, you can find a better deal by comparing options with MoneySuperMarket. All you need to do is tell us a little about how much you want to borrow, as well as the value of the property you’re buying, and how you want to pay the mortgage back.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Compare mortgages to find a better deal
If you’re looking to take out your first mortgage, you can find a better deal by comparing options with MoneySuperMarket. All you need to do is tell us a little about how much you want to borrow, as well as the value of the property you’re buying, and how you want to pay the mortgage back.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Author
Olamide Majekodunmi
Personal Finance Expert and Speaker
Ola Majekodunmi is a leading voice in financial education and the founder of All Things Money, an online platform designed to provide young adults with some of the financial tools needed to help...
Reviewer
Alan Cairns
Senior Content Editor
Alan breaks down money, home, and energy topics into plain English to help you save money. Ask him about pound cost averaging or Balkonkraftwerk.
