3 May 2024

Buying Your First Home: A 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, being aware of these costs is key to planning your moving budget effectively.

Here we break down the typical costs associated with purchasing your home. We also explore how first-time buyers can avoid some of these costs by buying brand-new with Cannon Kirk.

1. Mortgage Fees *

Product Fees

Ranging from £0 to over £2,000, these fees cover the setup of your mortgage deal. Sometimes these can be rolled into the mortgage, avoiding up-front costs but adding to the overall cost.

Broker Fees

Broker costs only come into play if you use a mortgage broker instead of dealing directly with the lender. Broker charges vary – some ask a flat fee, or a fee proportional to the property value. Others take a commission from the lender, avoiding an up-front payment, but typically adding to the overall cost of your mortgage.

Valuation Fees

Some mortgage providers will charge a fee for a property valuation, which can start at around £100.

2. Property Surveys

Beyond a Valuation Fee required by the lender, a Property Survey is optional. This assessment is especially useful if you are buying an older house, as it can identify maintenance issues such as missing roof tiles, faulty electrics, or damp, that you might not have spotted yourself. Property Surveys range from £300 to £1,500 according to the level of examination.

3. Conveyancing

A good conveyancer is vital to the smooth transition of ownership, as they complete the legal contracts and handle the movement of money. Use a Cannon Kirk approved conveyancer and we will contribute £500 towards your legal fees ** – a welcome financial cushion during this process.

4. Government Fees and Taxes

Stamp Duty

Stamp Duty is a reality of home buying, but the affordability of Cannon Kirk’s range of homes means that all home buyers can minimise this cost. But the news gets even better for first-time buyers: in England and Northern Ireland, they receive 100% Stamp Duty relief on properties up to £425,000, meaning that they avoid this tax completely.

Land Registry Fee

This is a charge to have the legal ownership of the house changed to your name on the Land Registry record and is tiered according to the property’s value.

5. Additional Expenses

Removal Costs

Transitioning to your new abode comes with logistical considerations. Professional movers have the vehicles and equipment needed to help you make the move, and some will even come in and pack away all your belongings for you. How much this will cost depends on the level of service you choose, and the distance travelled.

Fit Out Costs

To make it your own, an older home often requires basic changes ranging from cleaning and decoration, through new floorings, to major changes like a new kitchen or windows. Conversely, a Cannon Kirk home is brand new and fully fitted out to a high specification, meaning that it is ready to go straight out of the box.

Make the right moves with Cannon Kirk

Navigating the finances of moving home may seem daunting at first, but with the right incentives and budgeting strategies, the dream of owning your first home becomes attainable. Remember:

  • If you are a first-time buyer, you can avoid Stamp Duty if your home costs less than £425,000 – which most Cannon Kirk homes do.
  • Cannon Kirk Homes can extend a helping hand by contributing £500 towards your legal fees if you use our approved conveyancers. **
  • You can avoid much of the cost and all the hassle of bringing your home up to spec by buying brand new.

Add together the pounds and pence and you can see the sense in buying brand new from Cannon Kirk Homes.

For our latest availability visit www.cannonkirk.co.uk.


Sources: Halifax, HM Government, HM Land Registry.

*For more information on mortgage fees, consult your lender or broker.

**Terms and conditions apply. Contact Cannon Kirk for details.

Please note that other fees may apply.

All prices and applicable taxes correct as of 01 May 2024.