Ok - so you've found your dream home or perfect investment, now you need a mortgage to buy it.
With a perfect credit history, and a long-term relationship with Vanilla Bank who look after your mortgage and current account, what could go wrong? Well, as implied by the name of our made-up bank, some mortgage companies like straight forward plain properties, with no quirks or unique features – in short, regardless of your own status, if they don’t like the property they won’t lend you the money to buy it! A few examples where some banks may say no are:
– Freehold flats – the majority of flats in England are leasehold properties – but some are freehold – which is an area most but not all avoid.
Short remaining lease on a flat – virtually every lender has differing requirements, some look at the remaining term at the date of application, others require a certain remaining term at the end of the proposed new mortgage. Tyneside flats – these are local to the North East and therefore not approved by some lenders.
Land – many lenders are nervous where there are more than two acres of land attached to a property.
High rise flats – a development greater than six storeys can be an issue with some lenders. Two kitchens – an unusual occurrence, but a problem for most lenders.
Solar panels – seen by most homeowners as a huge benefit, but these can be a problem mortgage wise. Property above or close to nonresidential properties – this can be an issue with many Banks, but in our experience there is usually a solution somewhere in the mortgage market.
Not fit for mortgage purposes – sorry about the jargon, but this can cover several areas including a lack of a kitchen or a bathroom, through to the condition of the property. Auction properties are often a good example of this.
With an in-depth knowledge of each lenders’ “quirks” a professional mortgage advisor can help you avoid the disappointment and stress of a rejected application.
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