Most people save hard for a deposit and assume that is the hurdle. It is not the whole story. On completion day a buyer in England or Northern Ireland has to produce the deposit plus stamp duty, legal fees, a survey and a handful of smaller costs. Knowing the full figure before you make an offer is the difference between a smooth purchase and a scramble for cash in the final week.
This guide breaks down each cost for the 2026/27 tax year, with the current stamp duty bands and a worked example, so you can budget for the real number rather than the headline deposit.
Start with the deposit
The deposit is your own money, and it becomes equity in the home rather than a cost. But you still have to find it in cash. Most lenders want at least 5 percent of the purchase price, and the mortgage rates improve noticeably at 10 percent, 15 percent and 25 percent deposits. On a 300,000 home, a 10 percent deposit is 30,000.
To see how the deposit size changes your monthly repayment, put a few figures through the UK mortgage calculator, and check what price you can realistically reach with the mortgage affordability calculator.
Stamp duty in 2026/27
Stamp Duty Land Tax (SDLT) applies to property purchases in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax, and Wales charges Land Transaction Tax, both with their own rates.
From 1 April 2025, the standard SDLT bands for a main residence are:
- 0 percent on the portion up to 125,000
- 2 percent on the portion from 125,001 to 250,000
- 5 percent on the portion from 250,001 to 925,000
- 10 percent on the portion from 925,001 to 1,500,000
- 12 percent on the portion above 1,500,000
The tax is charged in slices, not on the whole price at one rate. A 295,000 home is taxed at 0 percent on the first 125,000, 2 percent on the next 125,000, and 5 percent on the final 45,000, which comes to 4,750.
First-time buyers get relief: no SDLT on the first 300,000, then 5 percent on the portion from 300,001 to 500,000. The relief disappears entirely if the price is above 500,000, in which case the standard bands apply. Buyers of an additional property, such as a second home or a buy-to-let, pay a 5 percent surcharge on top of every band.
Because the tax is sliced, the bill rises unevenly with price. Here is what a main-residence purchase costs at a range of prices in 2026/27, for a standard buyer and for a first-time buyer:
| Purchase price | Standard buyer | First-time buyer |
|---|---|---|
| £250,000 | £2,500 | £0 |
| £300,000 | £5,000 | £0 |
| £400,000 | £10,000 | £5,000 |
| £500,000 | £15,000 | £10,000 |
| £750,000 | £27,500 | £27,500 |
The first-time-buyer column tells the story of the relief: it saves the full 5,000 on a 400,000 home, but at 750,000 the relief is gone and both buyers pay the same 27,500, because the price is above the 500,000 ceiling. Add the 5 percent surcharge for an additional property and every figure in the standard column climbs sharply: on the 300,000 home it turns 5,000 into 20,000.
You can work out the exact figure for any price with the stamp duty calculator. The official bands are published by HMRC on the Stamp Duty Land Tax rates page.
Scotland and Wales use their own transfer taxes
If the home sits in Scotland or Wales, put the SDLT bands above to one side and use the devolved tax instead. Both are sliced the same way, but the thresholds are set differently, and Wales in particular does not start charging until much further up the price scale.
Scotland charges Land and Buildings Transaction Tax (LBTT). For a main residence the bands are 0 percent up to 145,000, 2 percent from 145,001 to 250,000, 5 percent from 250,001 to 325,000, 10 percent from 325,001 to 750,000, and 12 percent above 750,000. First-time buyers get a raised nil-rate band of 175,000, worth up to 600. A second home or buy-to-let carries an Additional Dwelling Supplement of 8 percent, charged as a flat rate on the whole price, for purchases from 5 December 2024.
Wales charges Land Transaction Tax (LTT). The main-residence bands are 0 percent up to 225,000, 6 percent from 225,001 to 400,000, 7.5 percent from 400,001 to 750,000, 10 percent from 750,001 to 1,500,000, and 12 percent above. Wales has the highest starting threshold of the three nations and runs no separate first-time-buyer relief, because the 225,000 nil band already covers most starter homes on its own.
The same main-residence purchase can therefore cost very different amounts depending on the nation:
| Purchase price | England and NI (SDLT) | Scotland (LBTT) | Wales (LTT) |
|---|---|---|---|
| £250,000 | £2,500 | £2,100 | £1,500 |
| £300,000 | £5,000 | £4,600 | £4,500 |
| £400,000 | £10,000 | £13,350 | £10,500 |
At 400,000 a Scottish buyer pays the most, because the 10 percent LBTT band starts at 325,000, well below where the equivalent English band kicks in. The rates come from Revenue Scotland and the Welsh Government LTT guidance.
Legal fees and conveyancing
A solicitor or licensed conveyancer handles the legal transfer. For a typical freehold purchase, expect 1,000 to 1,800 including the basic searches, with leasehold flats usually costing more because of the extra paperwork. On top of the solicitor’s own fee sit disbursements: local authority searches, Land Registry registration and bank transfer fees, which together often add 300 to 500.
Survey and mortgage costs
A lender will value the property, sometimes free, sometimes for a fee. That valuation protects the lender, not you, so most buyers pay for their own survey. A HomeBuyer Report runs roughly 400 to 900 depending on the property’s size and age, and a full structural survey on an older or unusual home can cost more. Some mortgages also carry an arrangement or product fee, commonly 999, which you can pay up front or add to the loan.
Putting it together: a worked example
Take a 300,000 home bought by a first-time buyer with a 10 percent deposit:
- Deposit: 30,000
- Stamp duty: 0, because first-time-buyer relief covers the whole price up to 300,000
- Legal fees and disbursements: around 1,500
- Survey: around 600
- Mortgage arrangement fee: 999, if not added to the loan
That is roughly 33,100 in cash needed on or before completion, of which 30,000 is the deposit that becomes equity. A buyer who is not a first-time buyer would add 5,000 of stamp duty to the same purchase, pushing the cash needed past 38,000.
To total all of this for your own price and deposit, use the cost to buy a home calculator, which adds the transfer tax and fees to your deposit in one figure.
FAQ
Do first-time buyers always pay no stamp duty? No. The relief is generous but capped. There is no SDLT up to 300,000 and 5 percent between 300,001 and 500,000, but above a 500,000 purchase price the relief is lost completely and the standard bands apply to the whole amount.
When do I actually pay these costs? Most land on completion day. The deposit and stamp duty are due then, and your solicitor usually collects the legal fees and disbursements around the same time. Survey and mortgage fees often come earlier in the process, so spread your cash planning across the whole timeline.
Should I add the mortgage fee to the loan? Adding it to the loan keeps cash in your pocket now, but you then pay interest on it for the life of the mortgage. If you can afford the fee up front, paying it directly is usually cheaper over time.
What changes outside England and Northern Ireland? Scotland and Wales use different transfer taxes with their own thresholds, so the stamp duty figures here do not apply there. Always check the rates for the nation where the property sits before budgeting.
Does the 5 percent surcharge apply when I move house? No, not if you are replacing your only or main residence. The surcharge targets additional properties, such as a second home or a buy-to-let, held alongside your main one. If you buy the new home before selling the old one you may pay the surcharge up front and reclaim it, provided the previous main residence is sold within the time limit set by HMRC.
Sources
- GOV.UK, Stamp Duty Land Tax: residential property rates.
- GOV.UK, HM Land Registry: registration services fees.
- Revenue Scotland, Land and Buildings Transaction Tax: residential property.
- Welsh Government, Land Transaction Tax rates and bands.