What to do if a property is deemed unsuitable for mortgage purposes? By Chris Morgan
To make an appointment with Chris Morgan about Unusual Mortgages & Product Transfers you can email him at enquiries@unusualmortgages.co.uk
Unusual Mortgages are specialist Mortgage Advisers for people who are buying properties that are declined by mainstream lenders, should they be deemed unsuitable as security for the mortgage.
All mortgage providers require a “survey”, “valuation”, “homebuyer report” or “red book” survey to check that a property forms suitable security for lending purposes.
Surveyors can sometimes make comments about a property that can effect the valuation of the property or note adverse situations that mainstream lenders do not like.
This process can seem very unfair – particularly for those with a significant cash deposit and solid proof of income – this can be especially the case if the property represents a significant opportunity for any potential buyer.
These are some the main reasons a mortgage may be deemed unsuitable for mortgage purposes, all are areas that we have been successful in arranging mortgage finance in the past. (A to Z Guide). Should you find a property and need our help then drop us an email at enquiries@unusualmortgages.co.uk
Acreage & Orchards
“Acreage” refers to the total extent or area of land, usually measured in acres. It is commonly used to describe large plots of farmland or rural property or orchards. Most high street lenders have maximum acreage they will consider with a property – which means many rural properties can be deemed unsuitable for mortgage purposes.
Barns & Outbuildings (Barn Conversions)
Mortgages for properties with barns and outbuildings, including barn conversions, are not generally available through high street lenders, particularly if the property is not immediately habitable, is a listed building, or involves significant acreage. These are often treated as “non-standard construction” or “smallholding” mortgages and are mostly financed by specialist lenders.
Equestrian Facilities
Equestrian mortgages are specialised financial products designed for properties that combine a residential home with equestrian facilities like stables, arenas, paddocks, and significant acreage. These properties often fall outside the criteria for standard residential lending and require a specialist lender or who accepts properties with Equestrian facilities.
Flood Risk Properties
Securing a mortgage for a property with a high flood risk is possible but has become increasingly difficult with mainstream or high street mortgage lenders. Lenders now factor flood risk data into their mortgage criteria and most will issue an outright rejection for the most exposed properties. This can be overcome with a specialist lender, who will also require flood risk insurance alongside.
Grade 1 & 2 Listed Properties
Properties with either Grade 1 or Grade 2 listing from National Heritage are often difficult to mortgage and require specialist advice. They are often mixed use rural properties and require detailed surveys and valuations, which sometimes lead to “adverse comments” from the surveyor. We have experience of financing listed properties, even if they have failed to sell at auction.
Negative Valuation Comments
Negative property valuation comments (often resulting in a “down valuation” or “undervaluation”) occur when a surveyor or lender determines a property is worth less than the agreed purchase price. These reports are primarily designed to protect the lender’s interests rather than the buyer’s, focusing on risks that might prevent them from recouping their money in a forced sale.
Non Standard Construction
Non-standard construction refers to residential properties built with materials or methods other than standard brick or stone walls and tile or slate roofs, such as timber frames, concrete panels, steel frames, or thatched roofs. These homes often require specialist insurance, may be harder to mortgage, and can face higher maintenance costs.
Split Use – Residential / Commercial
Mixed use mortgages for properties that combine both residential and commercial elements. For example some mortgages allow for both by assessing the combined floor space to be used for residential dwelling and alongside commercial purposes, such as barns and outbuildings. Finance for these properties can be possible, but normally require a full “red book” valuation.
Title Deed Issues
This is where there are multiple properties or residential units contained on one set of titles deeds, These are normally marquee or rural properties where a single property has been divided into two or more separate ones. These can involve, residential dwellings, buy to let flats, basement flats or annexes that are often arrangements that are put place without any thought towards future finance needs.
All of these are examples where we have successfully financed properties before and if you are trying to finance a property that falls into these categories then be sure to contact us for specialist advice.
A to Z of Mortgage Issues
If you would like to know more about the types of Mortgages that we arrange you can find a comprehensive “A-Z of Mortgage Issues” on the right side bar of this page. If you would like to know about a Mortgage that is not on the list, then be sure to contact us using the details at the bottom of this article.
15 Minute Mortgage Assessment
Unusual Mortgages also offer a 15 minute free mortgage assessment over the phone for anyone that has been turned down for a mortgage elsewhere. We will confirm if the decision you were given is correct and assess your options across all of the lenders on our manual research list, from which we tailor bespoke solutions for our clients.
If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not drop us a line at the email address below. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from the most experienced mortgage broker in the United Kingdom at placing “Unusual Mortgages”.
If you require more information on Complex Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk