Buying Your First Home: A 2025 Financial Guide

Buying your first home is an exhilarating experience – but it also comes with financial implications beyond the purchase price. From mortgage fees to Stamp Duty, understanding these costs is key to planning your move effectively.

Here we break down the typical costs associated with purchasing your home in 2025. We’ll also show how first-time buyers can reduce many of these costs by buying brand-new with Cannon Kirk.

1. Mortgage Fees

• Product Fees: Ranging from £0 to around £1,500, these cover the setup of your mortgage deal. Some lenders allow you to add the fee to your mortgage balance, avoiding an upfront payment but increasing overall interest.
• Broker Fees: If you use a mortgage broker instead of dealing directly with a lender, you may pay a flat fee (often £500–£1,500), a percentage of the loan amount, or no upfront fee if the broker takes commission from the lender. Always confirm costs at the outset so there are no surprises.
• Valuation Fees: Many lenders charge for valuing the property, typically £150–£500, depending on its value and location. Some lenders include basic valuations free of charge.

Mortgage and broker costs vary by lender, product type, and property value. Always seek independent financial advice before choosing a mortgage.

2. Property Surveys

Beyond the lender’s valuation, an independent property survey is optional but recommended, especially for older homes. Surveys can reveal maintenance issues such as damp, roof problems, or faulty electrics that may not be visible during a viewing.

• Condition Report (Level 1): ~£300–£500
• HomeBuyer Report (Level 2): ~£400–£900
• Full Structural Survey (Level 3): £800–£1,500+

Prices are indicative. New-build homes typically do not require a full structural survey.

3. Conveyancing

A good conveyancer is vital to ensure a smooth legal transfer of ownership, handling contracts, searches, and funds securely.

Typical cost (2025): £800–£1,500 plus disbursements such as searches, bank transfers, and ID checks (an additional £200–£700).
Use a Cannon Kirk–approved conveyancer and we’ll contribute £500 towards your legal fees – a welcome helping hand when every penny counts.

Always confirm whether your quote includes VAT and all disbursements. Leasehold purchases or Help-to-Buy properties may incur extra legal work.

4. Government Fees and Taxes

Stamp Duty Land Tax (SDLT)

Stamp Duty Land Tax applies to nearly all property purchases in England and Northern Ireland. As of 1 April 2025, first-time buyer relief thresholds were revised following the expiry of the temporary higher limits introduced in 2022.

• Up to £300,000 – 0% (no Stamp Duty)
• £300,001 to £500,000 – 5% on the portion above £300,000
• Above £500,000 – No first-time buyer relief; standard rates apply

Example: If you buy your first home for £400,000, you’ll pay £5,000 in Stamp Duty (0% on the first £300,000 and 5% on the remaining £100,000).

These thresholds took effect on 1 April 2025 after the rollback of the temporary £425,000 limit. Future changes are possible — always confirm current rates on https://www.gov.uk/stamp-duty-land-tax.

• Standard SDLT Rates (Non–First-Time Buyers):
• Up to £125,000 – 0%
• £125,001–£250,000 – 2%
• £250,001–£925,000 – 5%
• £925,001–£1.5 million – 10%
• Over £1.5 million – 12%
• Additional Surcharges: second homes/buy-to-let +3%, non-UK residents +2%, companies or trusts may face special rules.

Different property tax systems apply in Scotland (LBTT) and Wales (LTT). The figures above apply only to England and Northern Ireland.

Land Registry Fee

This is charged when your ownership is officially registered with HM Land Registry. Fees generally range from £20 to £500 for most purchases.

HM Land Registry updated some registration and information-service fees in late 2024; check the latest schedule before completion.

5. Additional Expenses

• Removal Costs – Professional movers can handle packing and transport. Expect £300–£2,000+, depending on distance and service level.
• Fit-Out Costs – Older homes often require cleaning, decoration, or refurbishment. A Cannon Kirk home is brand-new and fully fitted to a high specification: ready to move in from day one.

Make the Right Moves with Cannon Kirk

• First-time buyers pay no Stamp Duty on homes up to £300,000 and a reduced rate up to £500,000.
• Cannon Kirk contributes £500 towards legal fees when you use one of our approved conveyancers.
• Buying brand-new means avoiding costly renovations and unexpected repairs.

When you add up the pounds and pence, the advantages of buying brand-new from Cannon Kirk Homes speak for themselves. For our latest availability, visit www.cannonkirk.co.uk.

Important Information

• All figures, costs, and tax thresholds are correct as of 1 October 2025.
• Property taxation and government incentives are reviewed regularly; always verify current details before purchase.
• This guide is for general information only and does not constitute financial or legal advice.
• Always consult a qualified mortgage broker, solicitor, or tax adviser for guidance tailored to your circumstances.

Sources: HM Government, HMRC, HM Land Registry, HomeOwners Alliance, MoneyHelper, Moneysavingexpert.
Terms and conditions apply. Contact Cannon Kirk for details.