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Feb 28

16 Homes to Avoid If You Want to Get a Mortgage

Yes, there are certain types of properties where it is easier to get a mortgage! Securing a mortgage can be stressful, and the type of property you’re buying could wreck your chances of getting a loan. From ex-local authority council housing to eco-homes. In this article, Which will reveal 16 properties you might struggle to get a mortgage on.


Here are the 16 properties to avoid if you need finance according to Which?

  • Ex-local authority housing

Ex-local authority housing is cheaper than other homes on the market. Lenders don’t want to give mortgages for this kind of housing because it might lose value over time.

  • High-rise flats

Lenders will not give mortgages for homes that are higher than a certain level in high-rise flats. The quality of communal areas in high-rise properties is out of the homeowner’s control which can decrease its value in the future.

  • Properties made of concrete

Most high-rise concrete homes were built in the 60s and 70s. The type of materials used is also a great factor (Ex. Concrete). Thatched properties or houses with wood and steel frames are properties that are hard to sell.

  • Flats above a shop or commercial premise

Homeowners who live near commercial premises are at greater risk of being affected by things like noise, smells, and security issues. This is because they cannot control these factors which could negatively impact the value of their property.

  • Properties with annexes or two kitchens

The council tax implications of owning a property with an annex are that you will need to pay separate rates for each part, which could make ownership more expensive which can affect the approval of your mortgage.

  • Multi-unit blocks

It’s unlikely to grant a residential mortgage on this type of property because there is a risk that you might rent out part of the building, which would be in breach of the mortgage terms.

  • Live/work units

Using this type of home exclusively for residential purposes is not permitted and would breach the planning regulations. If you’re found guilty by local authorities, you could end up with business rates or council tax charges too!

  • Studio flats

Studio flats are difficult to sell because they are small and not many people want them. Most lenders will not give you a mortgage especially if the flat is less than 30 square meters.

  • New build or recently renovated properties

Mortgage providers are often stricter when lending money to a new-build home. New built or recently renovated property might be worth less than what was paid for it in the early years of ownership.

  • Properties with agricultural ties

An agricultural tie means that a property can only be occupied by someone who works in agriculture or forestry. Lenders usually refuse to grant mortgages for properties because it can be difficult to sell agricultural ties, and they are often sold discounted.

  • Freehold flats

Freehold flats are often problematic because there’s no legal agreement between owners. Without one, it can be difficult to agree on repairs and cost estimates for when they need attention in order to prevent huge problems down the line

  • Properties with flying freeholds

A flying freehold is a freehold that goes to part of a neighboring freehold property (overhanging balcony, garage, or loft). Lenders have different opinions about freehold properties. Some lenders will only give loans if the freehold is a certain size.

  • Flats with no property management company

Leasehold flats without a management company often become difficult to finance due to the neglect of communal spaces. This negatively affects property value.

  • Properties with short leases

Short leases are often difficult to renew, which results in the value of the property in question going down. Most lenders are reluctant to grant a mortgage for these properties as they can be difficult to sell.

  • Properties that are not in a habitable condition

To get a mortgage the home should be habitable. Habitable means it has an accessible kitchen, bathroom, and watertight roof.

  • Eco-homes

Even though eco-homes are good for the environment. Properties powered by generators and off of the grid completely are difficult to sell.


Consult with an expert if you are getting a property that falls into these categories. It’s important to have all the information upfront. Seek guidance to get the best chance at securing financing for your purchase!


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16 properties to avoid if you want to get mortgage – Which? News

Securing a mortgage can be a stressful task in itself, but did you know that the type of property you’re buying could wreck your chances of getting a loan? From ex-local authority council housing to eco-homes, we reveal 16 properties you might struggle to get a residential mortgage on.