Finding a mortgage for some properties can be extremely difficult, especially without the help of a broker. Below, we discuss the types of properties that are challenging to mortgage.
Arranging your mortgage for a property purchase or remortgage can be difficult and daunting, but if you apply to the wrong lender, it can also be a waste of your time and money.
Below, we discuss the types of properties that are difficult to mortgage and how you can still secure a competitive deal despite these challenges.
What properties are difficult to mortgage?
There are a number of property types that are difficult to mortgage, and whilst this list is not exhaustive, it will give you a good idea of which properties can be challenging:
- A property that is near or next to electrical substations
- Any property that is derelict or without basic essentials, such as a kitchen or a bathroom. Furthermore, many lenders won’t accept properties with no heating
- Properties let on corporate agreements to asylum seekers or other vulnerable tenants. Many lenders will not accept these arrangements due to the potential negative press if they had to repossess the property. Thanks to our experience and whole-of-market access, we work with 2 lenders with competitive rates that can lend on this type of deal.
Why are lenders hesitant to offer on these types of properties?
Lenders' main concern with these types of properties is resaleability. They need to be sure they can resell a property if they must repossess it, and any of these factors could make this more challenging.
Why can a broker arrange a mortgage for this property type?
We have whole-of-market access and contacts at each lender with whom we can confirm suitability before submitting your case. We have years of experience and have encountered many different property types, so if we have worked on a similar property in the past, we can quickly identify the best lender for your needs.
I already own this property type – how do I remortgage?
As mentioned, financing these types of properties can be challenging without the help of a broker. Many specialist lenders that may be open to considering these properties don’t deal directly with borrowers and only accept applications through brokers like MFB. This type of lender is often referred to as “intermediary-only”.
We have established relationships with these types of lenders and dedicated underwriters with many others. We can approach the appropriate lender to help save you time and money and help push your application through by discussing any potential challenges with the underwriters directly.
Looking for your next mortgage?
Let’s discuss your property finance options. You can call us on 0345 345 6788 to see what types of rates you can access, or submit an enquiry and we’ll get in touch to start the process.
