First-Time Buyer Budgeting Checklist

For first-time buyers who want a complete cash budget before they commit — every upfront cost on day one, and the ongoing monthly shift from renting to owning. Where the first-time buyer master guide covers the process, this one is the money checklist: what to save, what gets missed, and how to stress-test the jump in monthly housing costs.

The day-one cash checklist

• Deposit — minimum 5%, standard 10%, cheaper rates at 20%+. A Lifetime ISA adds a 25% government bonus on up to £4,000 a year.
• Conveyancing — £1,000–£2,000 for your solicitor.
• Survey — £400–£800 for a Level 2 or 3 Homebuyer's Report.
• Mortgage arrangement fee — often £999; addable to the loan, but you then pay interest on it for the full term.
• Stamp Duty — first-time buyers pay no SDLT on the first £300,000 of a property up to £500,000 (5% on the portion from £300,001 to £500,000); above £500,000 the relief does not apply. Check current thresholds at GOV.UK: Stamp Duty Land Tax.
• Move and furnish — removal van (£300–£1,000) plus immediate essentials (bed, fridge, white goods).

Worked example: buying a £250,000 home, 10% deposit

Upfront cash on day one:

• 10% deposit: £25,000
• Solicitor: £1,500
• Level 2 survey: £500
• Stamp Duty: £0 (within FTB relief)
• Move and furnish: £2,500
• Total cash needed: ≈ £29,500

The ongoing monthly shift (renting → owning):

• Mortgage (£225,000 at 4.5%): ≈ £1,250
• Council tax (Band C): ≈ £160
• Home and contents insurance: ≈ £30
• Maintenance sinking fund (boiler, roof): ≈ £150
• Core housing cost: ≈ £1,590/month — up from £1,000 rent where the landlord covered repairs.

Stress-test these numbers with the Mortgage Calculator and the Budget Planner.

Three budgeting mistakes first-time buyers make

• Draining savings to fund the deposit. Moving in with £0 in the bank is dangerous — a broken boiler is a £2,500 emergency that is now your problem, not a landlord's. Keep a £3,000 buffer post-completion.
• Ignoring leasehold charges. Flats carry ground rent and service charges that can rise unpredictably. Factor them into the monthly budget, not just the mortgage.
• Borrowing to the max offer. Just because a lender will lend £250,000 does not mean you should take it. Maxing out affordability leaves no room if rates rise at remortgage or one income drops.

Deposit source rules

The deposit must come from genuine savings or a documented, non-repayable family gift — lenders check bank statements, and a personal loan taken out for the deposit will usually be spotted and decline the application. Plan the source early so there are no surprises in underwriting.

Limitations

SDLT thresholds and FTB relief change with government budgets; mortgage rates and affordability multiples vary by lender and credit history. Council tax bands and insurance costs vary by property and area. Your home may be repossessed if you do not keep up mortgage repayments. This is educational, not advice; a mortgage broker can tailor figures to your situation.