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 – 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 freehold 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 2 acres of land attached to a property.
High rise flats – a development greater than 6 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.
Not fit for mortgage purposes – sorry about the jargon, but this can cover a number of 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.
Local, face to face, independent mortgage and loan advice can smooth the whole process and we would be delighted to help.
Paul Hardingham and Tony Ibson are Mortgage and Protection Advisers at Innovate Mortgages and Loans. Both have over 20 years of experience advising individuals and businesses across the North East of England. They can be contacted for bespoke advice at paul@innovateml.co.uk or tony@innovateml.co.uk or call 0191 223 3514.
Think carefully before securing other debts against your home. Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
