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Studio flat mortgage

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 6, 2023

Studio flat mortgage

Singles and couples who live in high-priced areas will love a studio flat. Studio flats are relatively affordable, but it can be hard to get studio flat mortgages.

This article will discuss studio flat mortgages and what you should consider when applying.

Click the link below to speak with our mortgage brokers about a mortgage on a studio flat. We have a few mortgage providers lending therefore the mortgage broker will find the mortgage lender most suitable for you.

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Can I get a studio flat mortgage?

Yes, you can get a studio flat mortgage, depending on your individual circumstances. For a studio flat mortgage, many types of mortgages are available, including residential and buy-to-let. Mortgage advice is highly recommended.

However, your eligibility requirements will determine whether or not your application is approved. These may be stricter than those for other property types and you will need to show you can make the mortgage repayments.

Your prospective lender may consider the location of the studio to be non-standard. This could mean they may not offer you favourable terms or refuse to lend.

Mortgage lenders will often emphasise the valuation of studio flats within blocks more than they would with other types of property. Your mortgage lender will be more likely to work with you if the surveyor believes the property has resale potential.

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Studio flat mortgage criteria

Apart from your personal profile, financing a studio apartment often boils down to:

The design and size of the studio flat

Despite the rise in micro homes, mortgage lenders are not keen to lend on studio flats smaller than 30 square meters. However, there may be exceptions depending on the lender and the property.

Some lenders prefer certain design features in terms of layout. Mortgage lenders will prefer a separate kitchen to the main living area. They’ll also be less likely to approve a flat whose entrance is via an exterior walkway.

It is also essential to consider the design and environment of the flat.

Any commercial property nearby.

It can be problematic for a flat to be located next to or above a commercial property. Mortgage lenders are especially cautious about noisy commercial activities nearby, such as bars and nightclubs – or businesses that could pose a fire hazard (such as restaurants).

Construction and height of the building

Some mortgage lenders may not approve studio flats on buildings with seven floors or more. Some types of concrete construction may also turn off mortgage lenders, but not all. This is where the opinion of the surveyor is essential. Some mortgage providers prefer lift access, especially for multi-storey buildings.

Studio flats that overhang another property, are under another adjoining property, or are supported structurally in some way by another property may require a flying freehold mortgage.

The remaining time on the lease

A mortgage lender would prefer that the lease term lasts for a longer time if it is a leasehold property, which most studio flats in the UK tend to be. Short leasehold properties are more difficult to sell and therefore considered higher risk.

What does it mean if I can afford a mortgage for a studio apartment?

These factors affect the risk that the flat may pose to a lender.

We’ll discuss some factors influencing how risky a lender views you. The lender needs to be sure you can make the mortgage repayments. A specialist mortgage broker will introduce you to a mortgage provider whose lender criteria you meet.

We provide mortgage advice with a mortgage advisor free of charge.

Your income sources

Most mortgage lenders are interested in what you earn and how it is earned. Your ideal scenario is that you make all your income from a high-paying PAYE salary. Lenders may consider you riskier if you are looking for a self-employed mortgage or want to include commissions or bonuses in your mortgage application or if you have a bad credit history.

Some specialist lenders can help the self-employed or people who get a lot of their income from bonuses. We can help you find them through the mortgage brokers we work with.

To speak with an independent mortgage broker, click the link below. We will find you the best mortgage deal for a residential mortgage or a mortgage on a studio flat.

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Additional costs

Most lenders will consider the charges associated with flat ownership when calculating your affordability. This includes the monthly cost of the lease, ground rent, and service charges. These charges will be included in your debt-to-income ratio.

What amount of a deposit do you have?

Lenders will be happier if you have a larger deposit and a lower loan-to-value (LTV) ratio. If you are purchasing a studio apartment, the minimum deposit required is 10%. However, some lenders may accept as little as 5% if necessary.

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Credit history

Credit history is more critical when looking for a mortgage deal; bad credit can be a problem with some mortgage lenders.

While some marks on your credit report may not be a problem, others, like a bankruptcy, may. In these cases, you might need to seek out a specialist lender.

Contact us if you have any questions about your credit history. A mortgage advisor is skilled in finding financing for people with bad credit. We can help with your mortgage application.

Your age

Some lenders have an upper limit on applicants’ age (at times, it’s 75 and at others, 85). Most lenders won’t mind if you can prove that you will be able to continue making your payments after retirement.

A specialised retirement property may be a better option for older people looking for residential mortgages.

These properties are usually lower than the market and are only available for people over 60.


Can I get a mortgage for a studio apartment for buy to let (BTL)?

If the lender isn’t concerned about the design or construction of the property, a BTL mortgage could be obtained for a studio apartment. This would depend on the lender.

You will need to deposit a higher amount ( most lenders require a minimum of 15%) and provide evidence of the local rental market. Some lenders may be more open to the idea if you are willing to provide collateral.

The viability of an investment is the main factor that most buy-to-let mortgage lenders consider when lending. Whether the rental payments are sufficient to cover the mortgage payments, speak with an exclusive mortgage expert who can explain the mortgage process and offer tailored advice.

Is there a specific lender for studio apartments?

Some lenders have a more favourable view of studio apartments than others. There is no one best firm for this. Every borrower is unique, and every lender has its own criteria. The market is constantly changing, so there is no single best.

Speak with our mortgage brokers to find you specialist finance and the best mortgage term on the market.

Talk to the experts for a mortgage on a studio flat now

No matter your financial circumstances, we can offer tailored advice with a mortgage broker.

Constitute financial advice free of charge with no obligation here today. We will take the stress out of looking for a mortgage.

Contact us now and get expert advice on how to get your mortgage for a studio flat now.

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