The Sunday Times - Mortgage hurdles that trip up homebuyers - November 2013
Most homebuyers have a specific set of requirements when picking a home - be it a garden, an extra bathroom, or plenty of storage space.
Aaron Strutt of the broker Trinity Financial told The Sunday Times: "Some lenders do not even mention that there are limitations on the types of property on which they will offer mortgages".
The Sunday Times has looked at some properties that often cause problems when securing a mortgage:
Ex local authority
NatWest and Halifax will consider lending on ex-council properties, although it is likely to depend on the location.
If a property you are thinking of buying is in a block of flats, count the number of floors. Nationwide has set the bar at four storeys without a lift, while Virgin Money will lend on properties up to five storeys; it will not lend in London if a building has more than 10 storeys, even with a lift. It is easier, however, to arrange a mortgage for high blocks in city centres through other lenders, such as NatWest.
A pub next door
It is well documented that lenders can refuse loans for properties above a takeaway, restaurant or pub. However, some banks will not even lend if the commercial space is next door. Mr Strutt said: "If a flat is near a property that makes noise, smells, or has a late-night client base, it will generally not be suitable for mortgage purposes."
No lift
If a property you are thinking of buying is in a block of flats, count the number of floors. Nationwide has set the bar at four storeys without a lift, while Virgin Money will lend on properties up to five storeys; it will not lend in London if a building has more than 10 storeys, even with a lift. It is easier, however, to arrange a mortgage for high blocks in city centres through other lenders, such as NatWest.
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November 3, 2013
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