Want to buy a property? Well, you need to convince a financial institution to lend you some funds to make it practical. The mortgage market in the UK is highly competitive and finding the right sort of mortgage deals for first time buyers can be a challenge. First, you have to show yourself capable enough to get a mortgage and second, you have to ensure that whatever the deal you choose, you have the capacity to repay it.

Buying a new house of your dream can be both exciting and nerve-racking. Getting a foot on the property ladder seems to be a bit stressful for first time home buyer, especially when you do not have sufficient funds.If the same happens for you, then Shine Mortgages is available especially for you...

We can help you with how much you can afford and how much you can borrow. We will provide you with a product that suits your affordability. Our first time buyer mortgage rates are affordable and our different deals will help you buy a new residential property.

Use our mortgage calculator to:

  • Analyse how much you borrow
  • Compare monthly repayment
  • Check the interest rates best suited to you

How Can We Help The First Time Buyer?

Buying a home for the first time is indeed the most exciting thing in your life. However, excitement should not overcome the thinking process. Your decision should be precise especially when you are searching for the best mortgage lenders for first time buyers. Shine Mortgages feels you confident that you are on the right lending place. Our benefits are:

  • Our mortgage process is online that means simple and straightforward. We are a team of professional providers, who will help you at every step to get the best deal saving your time and effort.
  • We have wide options and we will help you get the ideal and personalised mortgage at nominal interest rates.
  • We also provide remortgaging options and can save you money.

It is crucial for you to know the time to buy the best mortgage for first time buyer. Before you get a property, you should take an idea of mortgage deals by doing online research. This will give you an idea about how much you can borrow.

Remember that some direct lenders put hard inquiries, which show up on your credit report. In this case, do not put in the application at multiple lenders. However, we run a soft credit check where the approval comes on the basis of your prevailing requirements, not on your credit history. Since it does not reflect on your credit report, your score does not go down.

Mortgage loans procedure for a mortgage deal

We pursue the following procedure before approving a mortgage:

  • The procedure for a mortgage starts by asking for your income. You will submit your bank account, payslips, and income from a part-time job, self-employment, property, and so forth.
  • We will look over your monthly incomings and outgoings such as day-to-day operations, other debt repayments and credit card bills to ensure your repayment capacity.
  • Please note that we will contact credit bureaus and ask them to share your credit report with us. This will help us know about your creditworthiness. Our decision of approving or turning down your application depends on your credit score.

Eligibility Criteria:

  • You must be a UK resident.
  • You must hold the possession of a UK property.
  • You must be at least 18-years-old to submit the application.

We will allow you to take out a mortgage only if you submit one of your assets as a deposit. The minimum deposit we expect from our buyers is 5%. However, you are allowed to pay more than 5%. A large amount of deposits will help you get competitive mortgage deals. If you are looking to the mortgage lender, you have come to the right place. We provide the best mortgage for first time buyers.

How Much Deposit Do I Need For A Mortgage First Time Buyer?

If you want to mortgage for commercial property, you need to give minimum deposit of 5%. However, the bigger deposit you keep, the more you can gain better interest rates. And, if you want to keep lower monthly repayments, then your mortgage will be cheaper. It means you should have adequate deposit to submit before buying a mortgage. To clear the concept more, we are giving a reference table of Money Saving Expert:

How Bigger Deposit Makes A Huge Impact?
Deposit Interest rate Loan amount Monthly Cost Total cost over 2 years
5% 10% 20% 25% 40%
2.79% 2.09% 2.05% 1.95% 1.85%
£190,000 £180,000 £160,000 £150,000 £120,000
£880 £770 £682 £632 £500
£21,120 £18,480 £16,360 £15,160 £12,000

How Can You Go for First Time Buyer Mortgages

The marketplace does offer you different mortgages deals and Shine Mortgages, in order to help for first time buyers, explaining those ones here:

  • Joint Mortgage
    If you find your deposit and the borrowed amount is not sufficient to climb the property ladder, you may opt for this sort of mortgage. Under this scheme, you can convince your friend, family member or a partner to become your co-borrower. Once they agree, they can add more value to the deposit and help you to get the large amount for availing a mortgage loan.
  • Shared ownership
    This sort of mortgage also help first time home buyer. If your annual income is less than £60,000, then you can look upon this option. You just need to borrow mortgage for a specific percentage of a property and rest of the amount will bear by the landlord or government.
  • Guarantor mortgage
    Bring out a guarantor that may be your parents, family member, colleague or friend. Applying for this mortgage helps a lot, as you can take out a larger mortgage for your very first home and if you miss the repayments, the guarantor will take such responsibility.

How You Will Make Monthly Mortgage Repayments

Your monthly mortgage repayments is finalised on the basis of what sort of mortgage you have availed. Here are kinds of mortgages that you can consider:

  • Fixed Rate Mortgages: It will confirm the monthly repayments for either three years or five years. Some lenders may extend the term to 10 years.
  • Tracker Mortgages: It is based on the Bank of England’s actual rate. Here, the interest rates may go up and down depending upon the Bank’s rates. You need be extremely sure about the repayments and then you can apply it.
  • Offset Mortgages: If you have savings account with your bank and taken a mortgage also with that bank, you can offset your interest rates that you are going to pay on mortgage.

Make the Ideal Use of Mortgage Calculator

If you are looking forward to getting the best mortgage deal, you must know how much you should borrow and how much it is going to set you back. You do not need to get into the hassle of contacting us because we have provided well-compiled first time buyer mortgage calculator.

Our online calculator will help you know how much you could borrow. The calculator is only for an illustrative purpose. It does not show a mortgage offer. To get the mortgage, you need to fill the online application form and then, we will assess your creditworthiness.