Property Types - Mortgage Companies Have Different Tastes!

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, but are 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 home owners as a huge benefit, but these can be a problem mortgage wise.

-Property above or close to non-residential 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 may be able to help you avoid the disappointment and stress of a rejected application. Local, face-to-face, independent mortgage advice can smooth the process – we are ready to take your call and offer assistance at a time and place to suit you!