If you’re a foreign national getting ready to buy your first UK home, you’ve probably budgeted for the deposit and mortgage. But what catches most people off guard are the hidden costs of buying a UK home, costs that can delay your plans or create unnecessary stress if you’re not prepared.
At First Time Finance, we’ve guided hundreds of clients through the full homebuying process and this is one of the most common blind spots. Here’s exactly what to expect and how to prepare for every expense.
What Are the Hidden Costs of Buying a UK Home?
Beyond your deposit and monthly mortgage repayments, here are the most common hidden costs foreign nationals should budget for:
Stamp Duty
If the property you’re buying is over £300,000 and you’re a first-time buyer, you may need to pay Stamp Duty. The amount depends on:
- The property value
- Whether you own property abroad
- Your visa status and tax residency
Tip: Stamp Duty exemptions apply in some cases for first-time buyers — but not always for visa holders.
Legal and Conveyancing Fees
You’ll need a solicitor or conveyancer to handle the legal work. This typically costs:
- Between £1,200–£2,000
- More if the property is leasehold or high value
Some solicitors charge in stages, so budget for instalments.
Property Survey & Valuation
Even if your lender arranges a basic valuation, we recommend:
- Homebuyer Report: £400–£600
- Full Structural Survey: £800–£1,200
This helps uncover structural issues before you commit.
Lender Arrangement Fees
Most mortgage products come with a setup fee, often:
- £999, though this can vary
- Sometimes added to your mortgage, but it’s best to budget for it
Proof of Deposit & Paper Trail Costs
If your deposit comes from overseas, you may need:
- Official currency conversions
- International transfer confirmations
- Translations of financial documents (in some cases)
These costs are small but essential for visa-holder applications.
Removals & Moving Costs
Hiring a removals company can range from:
- £300 for local moves
- Up to £1,000+ if relocating from further away or with a lot of furniture
Don’t forget packing supplies and transport costs.
Personal Protection Insurance
While not mandatory, most lenders strongly recommend:
- Life Insurance
- Income Protection
- Critical Illness Cover
These protect you and your loved ones if something unexpected happens. It’s especially important if you’re buying with a partner or supporting family.
Broker Fees – Ours Are Simple
A First Time Finance, our mortgage offer fee is £495
You only pay once we’ve successfully secured your mortgage offer. No risk to you, just expert support.
This is the only fee we charge. It covers full support, document checks, lender matching, and offer tracking.
Final Thoughts: Plan Beyond the Deposit
The hidden costs of buying a UK home can be managed easily if you know what’s coming. The earlier you plan, the fewer surprises — and the smoother the process.
At First Time Finance, we walk foreign nationals through these steps every day, helping them move from uncertainty to ownership with full clarity.
Want to see how much you need to budget? Download our Foreign National Mortgage Blueprint or Book a Mortgagee Call to get started.
FAQs: Rent or Buy in the UK as a Foreign National
Can I get a mortgage on a Skilled Worker visa?
Yes. Many lenders accept Skilled Worker visa holders with the right documents and deposit.
Is buying better than renting as a foreign national?
If you are earning consistently and plan to stay in the UK, buying can help you build equity and long-term stability.
Do I need a perfect credit score to buy?
No. Some lenders accept developing or limited UK credit histories if you have strong income and visa documentation.
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