Residential property types

Most intermediaries rightly associate the need for a specialist mortgage lender with cases where clients have been refused a loan by a high street lender. But what about the type of property they are looking to purchase or remortgage? In fact, you may have several clients who believe they cannot remortgage, despite borrowing from a high street lender in the first place, because the type of property they live in is no longer considered appropriate security for a loan.

Who is this product for

  • Customers who wish to purchase or remortgage properties including:
    • EX LOCAL AUTHORITY FLATS: Up to 80% LTV and up to 4 storeys where there is deck access
    • FLATS ABOVE COMMERCIAL PREMISES: up to 75% LTV. If above or next to restaurants, takeaways or launderettes, up to 60% LTV.
    • STUDIO FLATS: Where the internal floor area is greater than 30 sq.m.
    • MINIMUM PROPERTY VALUATION: £70,000. Ex local authority flats/maisonettes from £80k outside London.
    • NEW BUILD HOUSES & FLATS: Up to 85% LTV.
    • NO LIFT REQUIRED: In blocks where the flat to be purchased is on one of the first 4 floors

Key Lending Criteria

  • Available across all residential products
  • Valuations from £70,000 for all property types except ex-LA flats/maisonettes which need to be at least £80,000 outside greater London or £200,000 within
  • Ex-LA/Housing Association or Ministry of Defence houses are considered if:
    • There is no outstanding pre-emption requirement to repay a proportion of the discount
    • The property is of suitable security, standard construction, and is a Wimpey No Fines house (constructed post 1945 and not a bungalow) or Laing maisonette
    • Easiform house (constructed post 1965 and not a bungalow)
  • Ex-LA/Housing Association or Ministry of Defence flats or maisonettes are considered up to 80% LTV if:
    • Minimum property value of £80,000 (£200,000 in Greater London). For Right to Buy this is at the open market value not the discounted value
    • Blocks over 4 storeys in height (ground floor + 3 floors) or with more than 50 units are considered on an individual basis
    • Balcony access accepted