The short answer
The deposit is only one part of the cash needed. Set aside money for LBTT (if due), your solicitor’s quote and outlays, Registers of Scotland registration, mortgage/product and valuation charges, moving, immediate repairs and insurance. The exact total depends on the price, buyer status, lender, property and quotes. A Home Report is supplied by the seller in Scotland, but it does not guarantee condition or remove the need to budget for repairs.
Do not describe a deposit as a fee: it is part of the purchase price and, with the mortgage, makes up the price. Other purchase cash is normally on top of it. Confirm the settlement date and insurance requirement with the solicitor and lender; buildings cover may need to be in force from the date specified by the contract/lender, not casually assumed to begin on “exchange”.
What to include
| Cost or cash requirement | What to check |
|---|---|
| Deposit and LTV | Deposit is the difference between price and borrowing. A 10% deposit on £250,000 is £25,000 and implies a £225,000 mortgage (90% LTV), subject to valuation and lender criteria. |
| LBTT | Use the current progressive Revenue Scotland bands. First-time buyer relief is conditional and is not available with ADS. |
| ADS | Transactions with an effective date on or after 5 December 2024 can attract ADS of 8% of relevant consideration, plus ordinary LBTT, subject to statutory conditions/transitional rules. Get tax advice for a purchase/replacement scenario. |
| Solicitor and outlays | Obtain a written quote separating fee, VAT, searches, money transfer, registration and any other outlays. Do not treat an uncited “typical” allowance as a fact. |
| Registration | Confirm the Registers of Scotland title-registration fee for the consideration and transaction, plus any relevant advance notice or other charge. |
| Mortgage and valuation | Check the illustration for product/arrangement fee, valuation fee, broker fee (if any), lender legal fee, and whether a fee is added to the loan. A lender valuation is not a full building survey and a valuation below the offer can create a valuation gap. |
| Home Report and repairs | Read the single survey, property questionnaire and energy report; budget for defects, specialist reports and improvements. Seller-supplied does not mean defect-free. |
| Insurance and move | Arrange buildings insurance on the date required by the contract/lender; add contents cover, removals, storage and utility changes only after obtaining quotes. |
| Ongoing costs | Mortgage payments, buildings/contents insurance, council tax, utilities, factoring/service charges, maintenance and future repairs are not one-off buying fees. Check the title, factor documents and seller information. |
LBTT: standard and first-time buyer illustration
Revenue Scotland’s residential table checked on 17 September 2026 shows progressive rates of 0% to £145,000, 2% on £145,001–£250,000, 5% on £250,001–£325,000, 10% on £325,001–£750,000 and 12% above £750,000. This is not a promise that future rates will remain unchanged. At £250,000, the standard illustration is (£250,000 − £145,000) × 2% = £2,100. Eligible first-time buyer relief raises the nil-rate threshold to £175,000, so the illustration is (£250,000 − £175,000) × 2% = £1,500, a £600 reduction. Every purchaser must meet the relief conditions; a joint buyer who does not qualify can prevent relief.
ADS is separate from ordinary LBTT and applies only where its conditions are met. It is not an automatic charge for every “second home” description, and it is not combined with first-time buyer relief. Use Revenue Scotland’s calculator and obtain conveyancing advice.
Labelled hypothetical itemised budget
Illustration only, not a quote or universal budget. Scottish purchase price £250,000; 10% deposit £25,000; mortgage £225,000 (90% LTV); repayment basis, rate and term are not specified. One owner-occupier is assumed. The standard column assumes no first-time buyer relief and no ADS; the FTB column assumes every buyer qualifies for relief and no ADS. Costs marked quote required are deliberately not invented and are excluded from the arithmetic subtotal.
| Item | Standard illustration | Eligible FTB illustration | Evidence / treatment |
|---|---|---|---|
| Deposit (10% of £250,000) | £25,000 | £25,000 | Arithmetic illustration; not a fee |
| LBTT | £2,100 | £1,500 | Revenue Scotland progressive bands/relief |
| Registers of Scotland registration fee | Quote/check current table | Quote/check current table | Confirm against consideration and transaction |
| Solicitor, VAT and outlays | Quote required | Quote required | No unsupported allowance |
| Mortgage/product fee, valuation and broker fee | Quote required | Quote required | Lender illustration and broker disclosure |
| Survey/specialist report beyond Home Report | Quote required | Quote required | Property-dependent |
| Buildings insurance, removals, repairs and initial furnishing | Quote required | Quote required | Obtain property-specific quotes |
| Known cash subtotal (deposit + LBTT only) | £27,100 | £26,500 | 25,000 + 2,100; 25,000 + 1,500 |
Arithmetic check: £25,000 + £2,100 = £27,100; £25,000 + £1,500 = £26,500. The mortgage is not added to cash needed: it funds £225,000 of the £250,000 price. Registration, legal, lender, moving, repair and insurance quotes must be added to the relevant subtotal before a buyer decides how much cash to retain. An ADS case would require a separate Revenue Scotland calculation; it is intentionally excluded from this owner-occupier/FTB illustration.
Valuation gaps, Home Reports and condition
The lender’s valuation is for lending risk and may not support the price offered. If the valuation is lower, the buyer may need a larger deposit, renegotiate, or withdraw subject to the contract and advice. Do not present a Home Report valuation as a guaranteed mortgage valuation. Read the Home Report and ask for specialist inspections where its findings or the property’s age/condition justify them. Repairs can be immediate, planned or ongoing; do not assign a generic repair figure without a property-specific quote.
Checklist before making an offer
- Write down price, available cash, deposit, target LTV and a reserve after settlement.
- Ask the solicitor for a written fee/outlay quote and the expected LBTT return/payment arrangement.
- Check Revenue Scotland’s current residential bands, FTB conditions, ADS and calculator.
- Read all Home Report documents; price specialist reports and urgent works separately.
- Compare lender illustrations, valuation arrangements, product fees and any valuation-gap risk.
- Confirm the insurance start requirement, title/settlement date and buildings-cover terms.
- Ask about factoring, common repairs, council tax, utilities, maintenance and future affordability.
- Keep quote fields open until the property, lender and solicitor provide actual figures.
For deposit planning, read mortgage deposits in Scotland. Use LBTT explained for Scottish buyers alongside current Revenue Scotland guidance or professional tax advice. Keep physical removals separate by using moving house in Scotland: costs and checklist.
Factoring and shared repairs may be a material cost when buying a flat. For a flat purchase, read buying an Edinburgh flat: factoring and maintenance, then ask the solicitor and property factor about the specific title and planned works.
For the mortgage side of the budget, see first-time-buyer mortgage advice or discuss your mortgage options. These services do not replace tax, legal, survey or property-specific advice.