Mortgage News

Listed buildings 'may deter mortgage lenders' - 07/01/2008

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One independent financial adviser notes that listed buildings may deter risk-averse mortgage lenders.

Lansdown Place spokesperson Simon Harris observes that the value of the property is one of three factors a mortgage lender is certain to consider when evaluating whether to approve a loan request.

As well as taking into account the prospective borrower's credit record and deposit amount, lenders can be expected to think about the home's value, which Mr Harris remarks can be uncertain if the property is rare.

One issue that could emerge with listed buildings is security, the independent financial advisory firm spokesperson asserts.

"For listed buildings, the various restrictions on what can be done and the covenants that demand what must be done will potentially adversely affect the security in the eyes of a lender," he says.

However, he adds that arranging the finance for such initiatives is "not particularly difficult" and can in fact be less of a challenge than attempts to establish flats over commercial premises in terms of mortgage approvals.

Steve Collins, director of Finance4, recently noted that the uncertain resale potential of listed buildings could affect borrowers' chances of obtaining a mortgage.

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