11 reasons you might not be able to get a mortgage for your home

1. The property is uninhabitable.

If your property is in such bad shape that people cannot live in it, banks and building societies will not lend you money for it. A property is uninhabitable if it is completely or partly in ruins, not protected from the weather, or not secure. Some lenders won’t give you a mortgage even if the house is in a good condition but without a kitchen or bathroom.

2. Properties with structural problems, flood risk, damp

One of the main reasons a house might not be eligible for a mortgage is structural damage caused by subsidence, which happens when the ground beneath the house shifts. Other structural issues that can also make a house difficult to finance include the absence of a barrier to prevent dampness, problems with wall supports, and specific types of flooring, like those made from red ash or concrete that can be damaged by certain chemicals in the ground. In some situations, a property might not be eligible for a mortgage not only if it has flooded or suffered from ground settling but also if it is just at risk of these problems. For example, areas that used to have coal mining can be especially vulnerable to ground settling.

3. Properties of non-standard construction.

If your home isn’t made of materials like brick or stone and doesn’t have a slate or tile roof, it might be classified as non-standard construction. This means it could be made from different materials like wood, thatch, or special types of concrete. Buildings with certain types of outside coverings, known as cladding, may not be able to be mortgaged depending on the EWS1 (External Wall System Fire Review) certificate.

4. Japanese Knotweed and other invasive weeds.

If Japanese Knotweed or other invasive plants are found on or near a property, many banks and lenders may not approve a mortgage for it. This is because Japanese Knotweed grows quickly and can potentially harm the structure of buildings.

5. Cheap and low-value properties.

Many banks and lenders typically won’t give out mortgages for properties worth less than £40,000 or £50,000. This means that if a property is worth less than this amount, you’ll struggle to get a mortgage for it. Speak to an L&C mortgage adviser if you’re looking for a mortgage of this size.

6. Leasehold properties

When you're buying a leasehold flat or house, you might run into some trouble getting a loan from banks or lenders if the lease is running low. A lease is generally seen as short if it has less than around 80 years left. The number of floors, lack of lift and structure on ground rents and/or service charges could impact future saleability. This is also true for ‘Share of freehold’ properties. It's estimated that around 100,000 homes in the UK are affected by excessive/escalating ground rents.

If your property is situated in an area where there are many council or social housing units, you might find that banks and building societies are less willing to offer loans for it.

7. Missing planning permission or building regulations approval.

If a property, or any part of it like an extension, has been built without the required permission from local authorities, you might have trouble getting a mortgage. This is especially true if any recent improvements, like new doors, windows, electrical work, or a new boiler, haven't been properly approved by the local council. If you can't show that this work meets their standards, the lender could deny your mortgage application.

8. Homes near or above commercial, or part commercial properties.

If your property is located above or next to a shop or office, or if any part of it has previously been used as a shop or office, you might not be able to get a standard residential mortgage.

9. If your property has never been registered with the Land Registry.

If you don’t have the title deeds for a property, lenders won’t provide a mortgage. You need to prove ownership of the property and have it registered with the Land Registry first.

10. Flying freeholds and creeping freeholds.

This refers to a situation where one property extends over or under another property belonging to a neighbour. For instance, if you have a bedroom that is located above your neighbour’s living room in a shared building. Because of this arrangement, banks might decline to give a mortgage, or they might only approve it if the part of your property that overlaps with your neighbour’s is a low % the overall property footprint.

11. Properties blighted by development plans.

If there are plans for big construction projects nearby, like a new road, a new train line, or an airport expansion, lenders might be more careful about giving out loans.

Speak to an L&C adviser for expert advice on buying your dream home today.