Whether you need a mortgage to buy your first home or an office, we provide various competitive deals to our buyers. A mortgage is a loan that you can take out to buy a property. However, you will put that property against the loan. We hold the title to your property unless you have paid off your debt.
The term of our mortgage loans in the UK varies from 10 to 25 years. Please note that you are free to fill out the online application form but we will sanction the loan only when you prove your repayment capacity.
Features of our mortgages::
- Lower interest rates
- You will get the loan within two weeks after submission of all documents.
- We will give you personalised deals.
- You can borrow up to 95% Loan to Value (LTV).
- You can borrow up to £150,000.
- Loans over £150,000 are approved on a case-by-case basis.
- We do not charge upfront fees.
- There is no hidden fees clause. Our terms and conditions are transparent.
- There is no maximum age.
Follow these four steps and your loan is approved:
- Fill out the online form - You will submit your query online. We will contact you to know in brief about the amount and purpose of a mortgage you want to take out.
- Wait unless approval - We will assess the value of your security to know the risk involved in it. Then, we will run a credit check to know about your repayment history. If your creditworthiness is fair, we will make a list of documents that you need to submit.
- Get binding offer - The binding offer will be having particulars like the loan amount, the length of the loan, interest rate, total reimbursed amount, annual percentage rate, and the number and size of your repayments. You will have a reflection period of 7 days to consider our proposal.
- Sign agreement - You will sign the agreement and then you will get funds.
Note: The property that you secure against a mortgage loan must be in the UK and you should be at least 21-years-old to apply for a mortgage. You need to be the resident of the UK besides.
The Purposes of Buying a Mortgage Loan
The reasons for taking out the loan include but not limited to:
- Purchase of a real property
- Settlement of co-ownership related to a real property
- Construction of a real property
- Refurbishment of a real property
- Invest in furniture, kitchen cabinets etc.
Consider the Deposit Size
Deposit is a percentage of the value of your house that you are buying and the mortgage is based on the rest amount (your borrowings). Note that you must have a 5% deposit to take out a mortgage. However, you can increase the amount of your deposit.
Of course, you will pay back interest on your mortgage. The lower the interest, the more manageable your debt is. You can avail the benefit of lower mortgage interest rates by increasing the amount of deposits. The larger your deposit, the smaller amount you will borrow, and the lower interest you will pay.
For instance, if you are buying a property of £500,000 and you have a deposit of £150,000. The deposit rate is 30% and Loan to Value (LTV) will be 70%. The mortgage is secured against this 70% portion. The lower the LTV, the lower your interest rate will be.
As a responsible direct lender, we provide mortgage offers at competitive interest rates. We have round the clock customer support to clear all your doubts and queries. We maintain transparency while dealing with our clients. We will offer you what is best for you.
What are the types of Mortgage?
There are several types of mortgages and you must know which one you need.
- First time buyer: If you want to get on the property ladder, you will apply for first time buyer mortgage. Shine Mortgages will provide you with lower-interest deals to help you get your own dream house. The minimum deposit you need is 5%. The higher the deposit, the lower the interest rate will be.
- Remortgage: Remortgage is the process of taking out a new mortgage deal at better interest rates by using the same property as a security. You can take out a remortgage from either a new lender or the same lender. The significant reasons for buying a remortgage is paying lower interest rates and getting more funds.
- Buy-to-let mortgage: If you want to invest in property to rent out, you will take out a buy-to-let mortgage. Remember that interest rates of these mortgages may be a bit higher than residential mortgage.
Mortgage Interest Rates - Know Which One is Better
- Fixed-rate mortgages
Fixed-rate mortgage requires you to pay off the loan at a fixed interest rate for a certain period like 5 to 10 years and then you will pay back the loan at standard variable rate (SVR). These mortgages are beneficial if you want to stick to your budget. Every month you will know how much you are paying. Note that the interest rate will be same irrespective of fluctuations in the base rate.
- Variable rate mortgages
As the name suggests, the interest rate correlates to the base rate of Bank of England. You will pay higher if the base rate goes up and you will pay less if the base rate goes down. Make sure that you have enough funds to pay back your instalment as you will not have an idea in advance of how much money you will pay.
The Importance of a Mortgage Calculator
Mortgage calculator is a good place to start when you want to know how much you could borrow. It will help you know how much loan a lender will disburse you after considering the size of deposit, annual income and the term. Note that the calculator will give you estimation only. Borrowings and interest rate may vary depending on your deposit size and credit history.
Shine Mortgages helps you get the best mortgage deal as per your budget. Apply today!