Properties Mortgage Lenders Don't Like – What to Watch Out For

Navigating the mortgage minefield of non-standard properties

Getting a mortgage can be tricky, especially if the property you're buying is considered "non-standard" by lenders. Some homes are seen as higher risk, making it harder to secure a loan, or even leading to higher interest rates.

If you're house hunting or considering an unusual property, here are the types of homes that mortgage lenders often view with caution—and what you can do about it.

1. Ex-Local Authority Flats & Houses

Many lenders are wary of former council properties, especially flats in high-rise blocks. Concerns include:

• Difficulty reselling if the property has a stigma.
• Restrictive lease terms (e.g., short leases or high service charges).
• Construction quality (some post-war builds have structural concerns).

2. High-Rise Flats (Especially Over 4 Storeys)

After the Grenfell Tower tragedy, lenders became more cautious about high-rise flats, particularly those with cladding issues. Even if cladding isn't a problem, some banks avoid tall blocks due to:

• Fire safety risks (EWS1 forms may be required).
• Higher service charges and maintenance costs.