Get a mortgage for a flat in the UK – Find out the best lenders, rates and criteria below:
Mortgages for flats are dependent on several factors. These include the requirements of different mortgage lenders and different types of properties.
Although it shouldn’t be any more complicated than getting a mortgage for a house, you may have to overcome some obstacles depending on your situation. You can get help from a professional mortgage broker who specialises in flats.
We provide mortgage advice free of charge. We have a few mortgage providers lending mortgages for flats. We will introduce you to a mortgage lender who offers a mortgage on a flat.
We aim to have your mortgage approved and get you the best mortgage deal. The mortgage broker will do all the research and hard work for you.
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Is it possible to get a mortgage on a flat?
It is possible to finance these properties. A mortgage on a flat is not uncommon.
You may find it more accessible with the help of a specialist broker to introduce you to a mortgage lender. However, consider what mortgage lenders will consider when reviewing your application.
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Your affordability
As with all mortgages on any type of property, banks first want to ensure you can afford the mortgage repayments. They will want proof that your income is sufficient to cover the monthly loan costs and that your outgoings are not excessively high.
Your eligibility
Lenders also consider your financial status. These include your income, your occupation and your credit history. Each lender will have different lender criteria. An independent mortgage broker will ensure you meet the lender criteria.
Which type of property do you wish to purchase?
The type of flat you are looking at will likely impact whether or not you get mortgage approval. This is a significant obstacle to mortgaging a flat because lenders are more cautious about ‘non-standard properties.
These types of information will impact your application and possibly the deal you get:
- Studio flats might fall below the minimum size requirements; however, there may be some exceptions, so speak to a specialist when applying for a studio flat mortgage.
- Flats in commercial buildings A valuers report may determine the outcome of a mortgage on apartments located above or within shops, pubs, and food establishments.
- Flats Ex-authority: Resale Value might be an issue, or the style and design of the property (balconies/communal gardens etc.).
- Multiple-storey flats: Some lenders may have trouble with multi-storey flats.
- Basement flats: Lenders must be satisfied that the property is mortgageable via a report.
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When was the flat built?
With the tendency for flats to decrease in value after purchasing, new builds can prove to be a problem when applying for a mortgage. It is possible to get a mortgage with some banks. However, the loan-to-value ratios for new-build mortgages may be lower than expected. This could make it less appealing if you are looking at high-risk mortgaging.
No matter if the property is freehold, leasehold or a combination of both
Freehold flats can cause mortgage problems. Leasehold, however, is far simpler than a mortgage on a flat. This will be discussed in greater detail when you contact our mortgage providers.
How a broker can help you get a mortgage for a flat
Working with a specialist broker to help you navigate complex mortgage applications is always a brilliant idea. If you venture out into the mortgage market alone, you may feel lost and confused. Our online mortgage advisor can prevent this.
It is not uncommon to apply for a mortgage on a flat. There are many options to choose from, lenders to look at and deals to be negotiated. You could find yourself with a loan-to-value ratio or interest rate that is not optimal, or even doors closing to you.
Our brokers are experienced, know how to find the right people, and offer practical advice to help you strengthen your application.
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How to get a mortgage for a freehold apartment
These restrictions are strict, and the number of lenders financing freehold flats is decreasing dramatically.
However, a few lenders will consider them, such as NatWest, Central Trust Limited and HSBC.
Some conditions will govern the legal arrangement of the flat, including whether it applies to the whole building, leases or tenancies within the remainder building and a valuer’s report. Some banks won’t offer freehold mortgages in Scotland, where freehold flats are more common than leasehold.
Why is it so difficult?
Accountability is the key. It all comes down to accountability. There is clear visibility on who is in the flat and where, often one single land owner; lenders prefer leasehold flats.
What lenders are likely to consider your application
Most mortgage lenders are willing to lend on flats. However, conditions can prove to be a problem, as we have already explained. Although they offer lower loan-to-value ratios than houses, they are open to negotiation and other mortgage types such as buy-to-let, commercial, and interest-only mortgages.
What about remortgaging
Remortgaging can be much simpler than getting an initial mortgage for a property. Most lenders open to lending to flats will also consider a remortgage. This should not be difficult if your financial situation has not changed and your flat’s price has not fallen.
Regardless of your reason for remortgaging, using an independent broker is a good idea to ensure you don’t get slowed down by unfavourable rates and restrictions.
How to get a mortgage for a buy-to-let flat
The restrictions above still apply to a mortgage for a flat. However, most lenders are willing to consider the possibility for eligible people. Additional conditions apply, including the requirement for an EPC rating (energy performance certificate) and a lower loan-to-value ratio.
Match you with a specialist mortgage broker for flats
Independent brokers that we work with are experts in their respective fields. They know how the market works when it comes to mortgaging a flat.
They are also familiar with the issues that must be resolved and how to make applications stand out. Finally, they negotiate for their clients to get the best possible deals.
Begin your journey by clicking the link below. We will remove the stress of getting a mortgage and ensure you have the best deal on the market.
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