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:

1. Income
2. Existing debts
3. 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:

1. 10–20% deposit = better interest rates
2. Lower monthly payments

• You may also qualify for schemes like:

1. Lifetime ISA (with government bonus)
2. 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

1. Payments stay the same (2–5 years usually)
2. Good for budgeting

• Variable / tracker

1. Can go up or down with interest rates
2. 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.

8. Avoid Overextending Yourself

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

• Leave room for:

1. Lifestyle spending
2. Emergencies
3. 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?

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