Unmortgageable Property

Unmortgageable Property helps homeowners, buyers, landlords and property investors find finance for properties that mainstream lenders may be unwilling to mortgage.

A property can be considered unmortgageable for many reasons, including structural problems, non-standard construction, a short lease, missing facilities or its location above commercial premises. Being declined by one lender does not necessarily mean that mortgage finance is unavailable.

We work with specialist lenders that consider properties outside standard lending criteria, helping you understand the options available and find a suitable route forward.

Our service is available across the UK.

Contact us to discuss your property and the finance options that may be available.

Who is Unmortgageable Property?

Unmortgageable Property specialises in helping people find finance for properties that are difficult to mortgage through mainstream banks and building societies.

We help with a wide range of unusual and complex properties, from homes with structural defects and short leases to properties built using non-standard construction methods.

Rather than relying solely on standard lending criteria, we look at the individual property, the reason finance has been declined and your circumstances before identifying lenders that may be willing to consider an application.

What Makes a Property Unmortgageable?

A property may be considered unmortgageable when its condition, construction, legal status or location falls outside a lender's standard criteria. Common reasons include:

• Structural problems or subsidence
• Non-standard construction
• Timber, steel or concrete frames
• Short leaseholds
• Properties above shops, restaurants or other commercial premises
• No functioning kitchen or bathroom
• Significant renovation requirements
• Defective or unusual property titles
• Flood risk
• Japanese knotweed
• Planning or building regulation issues
• Listed buildings
• Restrictive covenants
• Unusual property locations

Different lenders apply different criteria. A property rejected by a high street lender may therefore still be acceptable to a specialist lender.

Can you get a Mortgage on an Unmortgageable Property?

Yes, it may be possible to get a mortgage on a property considered unmortgageable by a mainstream lender.

The options available depend on why the property has been rejected. Some specialist lenders accept non-standard construction, short leases or properties requiring substantial work, while others specialise in particular property types or circumstances.

In some cases, a conventional mortgage may be available through a specialist lender. In others, short-term property finance such as a bridging loan may be more appropriate until the problem is resolved and the property can be refinanced.

What Types of Unmortgageable Property can we Help With?

We can help explore finance for a wide range of properties that fall outside standard mortgage lending criteria.

Properties with Structural Problems

Structural defects can make obtaining a mortgage more difficult because lenders need to consider the condition and long-term value of the property.

Problems may include subsidence, movement, cracking, roof defects or other significant structural concerns. A structural survey or specialist report may be required before a lender makes a decision.

Non-Standard Construction Properties

Many mainstream lenders prefer properties built using traditional brick or block construction.

Properties constructed using timber frames, steel frames, concrete panels, prefabricated systems or other non-standard methods may have fewer mortgage options. Specialist lenders may consider these properties depending on the construction type, condition and valuation.

Properties with a Short Lease

A short remaining lease can restrict the number of lenders willing to provide a mortgage.

The minimum acceptable lease length varies between lenders. The property's value, remaining lease term and plans for extending the lease can all affect the finance available.

Properties Above Commercial Premises

Flats and other residential properties above shops, restaurants, takeaways, offices and commercial premises can be harder to mortgage.

Lenders may consider the type of business below the property, its location, access arrangements, resale potential and any potential noise or nuisance.

Specialist lenders can offer more flexibility where the property does not meet standard high street criteria.

Properties Without a Kitchen or Bathroom

A property without a usable kitchen or bathroom may be considered uninhabitable and therefore unsuitable for a standard residential mortgage.

Alternative property finance may be available to fund the purchase and necessary work. Once the property reaches a mortgageable condition, refinancing onto a conventional mortgage may be possible.

Properties Requiring Major Renovation

Properties requiring extensive refurbishment can fall outside normal mortgage criteria, particularly when they are not currently habitable.

The appropriate finance will depend on the condition of the property, the work required, the purchase price and the plans for the property once renovations are complete.

How does Unmortgageable Property Finance Work?

The process starts by identifying why the property is difficult to mortgage.

We review the property, your circumstances and the finance required before considering which lenders may be suitable.

The process will usually involve:

1. Initial Assessment: We discuss the property, the reason it has been declined and the amount of finance required.
2. Lender Search: Suitable lenders are identified based on the property type and individual circumstances.
3. Property Assessment: A lender may require a valuation, structural survey or other specialist report.
4. Application: The mortgage or finance application is submitted with the required supporting information.
5. Completion: If approved, solicitors complete the legal process and the lender releases the funds.

Requirements vary between lenders and property types, so the exact process will depend on the circumstances.

Who does Unmortgageable Property Help?

We help homeowners, homebuyers, landlords, developers and property investors who are dealing with properties that are difficult to finance.

You may need specialist property finance if you are buying an unusual property, refinancing an existing property, purchasing at auction or have already had a mortgage application declined because of the property itself.

We can also help investors purchasing properties that require refurbishment before they become suitable for a conventional mortgage.

Why do Lenders Refuse Mortgages on Certain Properties?

Mortgage lenders can refuse to lend when they believe a property presents a greater risk than they are prepared to accept.

The lender considers whether the property provides suitable security for the mortgage. Its construction, condition, location, value, lease terms and potential resale market can all influence the decision.

This means a mortgage can sometimes be declined because of the property even when the applicant meets the lender's affordability requirements.

Lending criteria vary considerably, which is why being declined by one lender does not automatically mean that the property cannot be financed elsewhere.

What Information Will a Lender Need?

The information required depends on the property and the reason it is considered difficult to mortgage.

A lender may request:

• Property details and purchase price
• Details of the construction method
• Property valuation
• Structural survey
• Remaining lease length
• Details of required repairs
• Renovation plans and estimated costs
• Planning and building regulation information
• Proof of income
• Deposit or available equity
• Details of your intended use of the property

Providing accurate information about known problems from the outset can help identify suitable lenders and reduce the risk of approaching lenders whose criteria the property does not meet.

Frequently Asked Questions

Is an Unmortgageable Property Actually Unmortgageable?

Not necessarily. The term "unmortgageable" is often used when a property does not meet the criteria of mainstream mortgage lenders.

Specialist lenders may use different criteria and accept properties that high street lenders decline.

Can I get a Mortgage After Another Lender has Declined the Property?

Potentially. Mortgage lenders have different property criteria, so a decline from one lender does not mean every lender will reach the same decision.

Understanding exactly why the original application was declined can help identify lenders more suited to the property.

Can I Buy an Unmortgageable Property at Auction?

Yes. Unmortgageable and difficult-to-finance properties are commonly sold at auction.

Auction purchases usually have strict completion deadlines, so the type and speed of finance required need to be considered before bidding.

Can I Remortgage an Unmortgageable Property?

It may be possible to remortgage a difficult or unusual property through a specialist lender.

The options depend on the property's current condition, value, construction and the reason mainstream lenders are unwilling to accept it.

Can an Unmortgageable Property Become Mortgageable?

Yes. Some properties become suitable for mainstream mortgage lending once the issue causing the problem has been resolved.

This could involve completing structural repairs, installing a working kitchen or bathroom, extending a lease, completing renovation work or resolving legal and planning issues.

Can you Guarantee Mortgage Approval?

No mortgage application can be guaranteed.

Approval depends on the property, valuation, applicant, affordability, lender criteria and the information provided during the application.

Get In Touch

Being told that a property is unmortgageable does not always mean that finance is unavailable.

Specialist lenders consider many properties that fall outside standard lending criteria, including properties with structural problems, non-standard construction, short leases and significant renovation requirements.

Contact Unmortgageable Property to discuss your circumstances and find out what finance options may be available.