The Sunday Times - They only wanted a studio but there was no room for a loan

by Aaron Strutt

Oct 26 2014

Giles and Charlotte Rowlinson were shocked when their bank refused to give them a mortgage after a new job brought them from Cheshire to London.

The couple, who married last year, had no problems taking out a loan for their first home — a two-bedroom flat in Alderley Edge. The reason for the rejection second time round? NatWest told them the flat they wanted to buy was too small.

Aaron Strutt of the broker Trinity Financial said, told The Sunday Times: “Lenders are very reliant on the valuation report; if the valuer doesn’t like the property, the bank or building society is unlikely to offer a mortgage. However, some valuers won’t even agree to view the property if they think it is too small for the lender.

“It is important to make sure you know exactly how big the property is, or you could even ask if the seller has got a mortgage on the property or not,” he added. “This will give you a better idea if it suitable for mortgage purposes.”