Welcome to the exciting - and sometimes overwhelming - world of buying a home in the UK.
Whether you're a first-time buyer or moving up the ladder in Purley, Croydon & Greater London, understanding how mortgages work will seriously boost your confidence.
This guide from Shinerocks breaks down what you really need to know about today’s mortgage market - especially with current interest rates, affordability checks, and government schemes all changing how people buy homes.
Arranging the right mortgage that is tailored to suit your individual needs is vital, especially in an increasingly competitive mortgage market and changing economic environment. Receiving trusted and honest advice from industry experts can help secure the property you want and avoid a sale falling through, meeting your time scales to provide a hassle-free personal service.
That’s why we recommend CBM Financial an independent mortgage broker, who is well respected by mainstream institutions, private banks and other specialist providers.
Let’s take the guesswork out of the mortgage process with these key tips.
Think of your mortgage like your financial partner for the next two to five (or more) years - you want the right fit.
Fixed-rate mortgages: Your payments stay the same for a set period (often 2, 3 or 5 years).
Tracker mortgages: These follow the Bank of England base rate, so they rise or fall accordingly.
Standard variable Rate (SVR): This is your lender's default rate after your initial term ends - usually higher and less predictable.
You can view the current interest rate here, but more buyers are leaning towards short-term fixed deals in the hope that rates will settle or drop in the near future.
Interest rates determine how much your monthly mortgage repayments will be.
Fixed-rate = Stability: Great if you need predictable payments.
Variable = Flexibility (with risk): Payments go up or down depending on wider economic factors.
The Bank of England base rate has held steady recently, but it's often been a bumpy ride, so it's wise to speak with a mortgage broker who can compare the latest deals on the market.
3. What Is Loan-to-Value (LTV) — and Why It Matters
Loan-to-Value (LTV) is the percentage of the property price you’re borrowing. For example, a 90% LTV mortgage means you’re putting down a 10% deposit.
Lower LTV = Lower Risk for Lenders = Better Rates for You
Aim for at least a 15% deposit if possible. Buyers with a 25% deposit can secure noticeably better rates and more product choice.
Lenders look closely at your income, outgoings, and any existing debt. With cost-of-living pressures and high rental prices, some buyers find borrowing limits tighter than expected.
Top tip: Try to clear any debts before applying and avoid taking out new credit in the months before you get a mortgage agreement in principle.
With interest rates rising in recent years, more homeowners are exploring the option of porting their existing mortgage to a new property.
If you're already a homeowner, check whether your current mortgage is portable. This means you may be able to transfer your existing deal and its interest rate to your next home, potentially saving money compared to switching to a new product.
Porting can also allow you to borrow additional funds if you're upsizing, giving you the best of both worlds: keeping your favourable existing rate while securing extra borrowing for your new property.
The number of freelancers, contractors, and self-employed business owners is growing and they often face additional hurdles when applying for a mortgage.
If you're self-employed or have irregular income, you'll typically need at least one year of tax returns or business accounts (though some lenders may ask for two). Our mortgage advisor CBM Financial can help you find lenders who are more flexible and experienced with non-traditional income.
Your credit history tells lenders whether you're reliable with money. Missed payments, high credit card balances, or errors on your report can all affect your options.
Check your credit file for free via Experian, Equifax, or TransUnion, and fix any issues before applying.
Stamp Duty kicks in on property purchases above £250,000 (or £425,000 for first-time buyers).
Rates and exemptions change, so use the official HMRC Stamp Duty calculator to get a clear idea of what you’ll owe based on the latest thresholds.
The deposit for your new home is just the start. Here are some other costs you’ll need to plan for:
Mortgage arrangement fee (sometimes added to the loan)
Valuation and survey fees
Legal/conveyancing fees
Land Registry fees
Moving costs
Add these up early, so you’re not caught out once your offer is accepted.
The government has scaled back some of its older schemes (like Help to Buy), but support is still available:
Shared Ownership: Buy a share of your home and pay rent on the rest.
First Homes Scheme: Aimed at key workers and first-time buyers, offering a discount of up to 30% on selected new builds.
These schemes come with eligibility rules, so speak with a mortgage advisor or broker who knows the ins and outs.
Reading this guide means you’re already ahead of the game. Buying a property in Purley, Croydon & Greater London is one of life’s biggest milestones, and being mortgage-savvy helps smooth the way.
If you’re getting ready to sell or start your search for a new home in Purley, Croydon & Greater London, our team at Shinerocks is ready to help.
We know the Purley, Croydon & Greater London property market inside-out - and we’ll be here to support you from valuation to moving day.
Call us on 020 8660 2010 or email enquiries@shinerocks.co.uk to get started.
In the meantime, we’ve answered some of your common questions about the UK mortgage market.
It depends on your risk tolerance. Fixed gives security, which is attractive when rates are unpredictable. Variable can save money if rates fall - but it’s a gamble.
Ideally 15-25% for the best rates. That said, some 5-10% deals are still available, especially under Shared Ownership or First Homes discounts.
After your initial mortgage deal ends, you move onto the lender’s SVR - usually higher and not ideal long term. Consider remortgaging before this happens.
Yes, but you’ll have fewer deals to choose from. Use a mortgage broker, check for local or national schemes, and save what you can - every extra £1,000 helps!
Use the form to send us your questions and we'll respond as quickly as possible.
You can also call us on 020 8660 2010, or email enquiries@shinerocks.co.uk.
Learn more about the areas we cover by reading these helpful location guides.
