We recently sat down with financial advisor Andy Mannion from RSC New Homes to discuss everything first time buyers need to know.

 

1. Know What You Can Afford

• Use a mortgage calculator to estimate monthly payments.
• Lenders look at:

Income

Existing debts

Credit score

• A common rule: keep total housing costs below ~30–35% of your income.

Tip: Factor in extras like council tax, insurance, maintenance, not just the mortgage.

 

2. Save a Bigger Deposit if Possible

• Minimum deposits in the UK can be ~5%, but:

10–20% deposit = better interest rates

Lower monthly payments

• You may also qualify for schemes like:

Lifetime ISA (with government bonus)

First Homes or shared ownership

• Rowland also offer a Deposit Contribution* on selected plots which will help give you that boost

 

3. Check and Improve Your Credit Score

Before applying:

• Register on the electoral roll
• Pay bills on time
• Reduce credit card balances
• Avoid applying for lots of credit at once

 

A higher score = more lender options + better rates.

 

4. Get an Agreement in Principle (AIP) – Rowland can assist with mortgage broker recommendations to help.

• This is a soft approval from a lender
• Shows sellers you’re serious
• Helps you shop within your price range

 

5. Understand Fixed vs Variable Rates

• Fixed-rate mortgage

Payments stay the same (2–5 years usually)

Good for budgeting

• Variable / tracker

Can go up or down with interest rates

Riskier but sometimes cheaper initially

 

First-time buyers often prefer fixed rates for stability.

 

6. Budget for Upfront Costs

Don’t forget:

• Solicitor fees (£1k–£2k)
• Survey costs (£300–£1k+)
• Mortgage arrangement fees
• Moving costs

 

Stamp duty may be reduced for first-time buyers depending on price.

 

7. Consider a Mortgage Broker – Rowland can help!

• Brokers compare multiple lenders
• Can find deals not available directly
• Helpful if your situation is complex (self-employed, etc.)

 

8. Avoid Overextending Yourself

Just because a lender offers a large amount doesn’t mean you should take it.

• Leave room for:

Lifestyle spending

Emergencies

Future rate increases

 

9. Get the Right Property Survey

Options include:

• Basic valuation (lender requirement)
• Homebuyer report (mid-level)
• Full structural survey (older homes)

 

Skipping this can cost you thousands later.

 

10. Lock in a Rate at the Right Time

Interest rates change frequently.

• If rates are rising → locking early can save money
• If falling → you may want flexibility

 

Bonus Tip: Think Long-Term

Ask yourself:

• Will this property still suit me in 5+ years?
• Can I afford it if rates rise?
• Is the area likely to grow in value?

 

Simple Starter Plan

1. Check credit score
2. Save deposit
3. Get AIP
4. Work with broker
5. Visit your nearest development and start house hunting

 

*Available on selected plots, terms and conditions apply. Please ask Sales Executive for details.