Buying your first home is a big investment; possibly one of the biggest in your lifetime. But it’s also an exciting time as you embark on your home ownership journey. Affordability is always a key factor at this time.

There are a variety of costs associated with buying a property, such as mortgage payments, solicitors and survey fees. But there are also ‘hidden’ costs that you might not be aware of and could mean stretching your budget just a bit too far. At Surrey Abodes, we’ve put together a list of the hidden costs to consider when buying your first home. 

10 ‘hidden’ first-time buyer costs

Most buyers are aware of the major costs when purchasing their first home, such as mortgage deposits and monthly payments, solicitors fees, survey costs and if the purchase price is above £425,000, Stamp Duty is applicable. However, several other costs need to be considered, too. 

• Mortgage fees: there’s more to taking out a mortgage than just making the monthly payments. There are arrangement fees to pay, although this fee is often added to your total mortgage. If you go through an independent mortgage broker, you may be expected to pay a broker fee; however, due to brokers having access to a large variety of lenders, they can provide you with the most competitive rates, in turn potentially saving you money on your monthly mortgage payments.
• Legal fees: next to your mortgage payments, your legal fees will also be a hefty sum to pay. On top of the cost of your conveyancing solicitor, there is a charge for anti-money laundering checks, fees for searches with the Land Registry and the local council that must be carried out and there may well be other incidental costs to pay. Also, don’t forget that you may have to pay VAT on top. 
• Estate maintenance fees: these fees are becoming increasingly common, particularly with new developments. On top of the service charge, which may or may not include a peppercorn ground rent, you may need to pay an annual fee towards the upkeep of the grounds, especially if there are play parks, lakes and roads in/out of the development.   
• Service charges and ground rent: these monthly costs apply to leasehold and share of freehold properties; so, mainly flats and maisonettes. Always check what these are when viewing a property as it could impact your ongoing monthly budget. You may also find that on some roads or estates, there is a resident’s parking fee to park your car on the road outside your home. This is set by and payable to the local council. 
• Mail redirection: this is one thing many people forget to do but setting up a mail redirection for your post removes the possibility of important letters and parcels not arriving. Even if you’ve been living at home with your parents, it’s still a good idea. It can easily be set up online via Royal Mail’s website. 
• Buildings and/or contents insurance: a condition of a mortgage is that you have taken out a buildings insurance policy, which protects you and the lender should any major damage occur. If you’re purchasing a leasehold or share of a freehold property, in most cases there is a management committee to whom you pay a service charge and the buildings insurance is included in this cost. The committee will be able to supply you with a copy of the insurance certificate for your mortgage lender. However, if it’s a freehold property, and with some leasehold flats, you will need to arrange this insurance yourself. The cost will vary depending on a number of factors, such as location, size and age of the property and its condition. Indemnity insurance is another potential cost and may be required by some mortgage lenders. For example, if there is a flying freehold or building regulation issues, an indemnity policy will be needed. The good news is that it is a one-off payment for the policy cover. Content insurance is also recommended to protect your belongings. 
• Moving and/or storage costs: if you have energetic friends who don’t mind moving furniture and furnishings into your new home, you can keep the moving costs down by hiring a large van. It might cost you a few drinks though! But if you’re moving quite a bit of stuff, hiring a professional removal company can save you a lot of time and stress. How much it will be depends on the size of your house and where you’re moving to but it’s worth getting several quotes. 
• Survey fees: a mortgage lender will require a Valuation Survey to make sure the property you are buying is worth what you are paying for it. It is a condition of the mortgage offer and the lender will charge you a fee for carrying this out. It is also recommended that you get your own survey of the property conducted to make sure there aren’t any major issues with the home you’re buying. There are three types of house survey: a Home Survey, which is the basic level, a Homebuyer’s Survey which provides more detail, and a Full Structural Survey which delves into every nook and cranny of the property. Cost and the property you’re buying will dictate which survey you opt for. 
• Property maintenance/repairs: this is an ongoing cost over the years you own a property so it’s worth putting aside a sum each month to build yourself a ‘pot’ for maintenance and repairs. If you’re not moving into a brand new flat or house, you will probably want to put your own ‘stamp’ on the property so factor this into your house-buying costs. How much depends on the amount of work you want to do to your new home. 
• Furnishing your home: one of the most exciting things about moving into your first home is the fun you’ll have choosing your furniture and furnishings. From sofas, beds, sheets and towels to curtains, fridge/freezers, washing machines and even cushions, there’s a lot to fill your home with. However, make sure you set a budget at the start because it’s very easy to get carried away with spending.

Buying your first home is exciting, challenging and daunting all at the same time. But being fully prepared in terms of budgets and the financial outlay you will need to make is half the battle.Our highly experienced, professional sales team at Surrey Abodes is always on hand to offer friendly, intuitive advice when you need it. Whether you are looking to buy your first home, upsizing to your forever home, or downsizing now the kids have flown the nest, we have got you covered. Get in touch with us at any time.