Mortgage News

Mortgage rates 'higher on unusual homes' - 04/01/2008

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Unusual homes may be subject to higher mortgage rates than conventional properties, remarks one broker.

Steve Collins, director of Finance4, asserts that the resale potential for uncharacteristic properties is relatively low, so lenders may approach such deals with caution.

As such, seeking advice from a knowledgeable broker is especially important for these types of sales, he maintains.

Mr Collins explains that lenders are averse to unusual properties because they could be difficult to sell in the event that the borrower cannot pay their mortgage and is evicted.

"Anything that's outside the norm is going to present them with a problem that they probably don't need," he says.

However, lenders are increasingly willing to experiment with "dipping their toe in the water", he adds, noting that while the progress is slow it is definitely "a fact".

English Heritage reports that there are about 370,000 listed buildings protected in Britain, of which 92 per cent are the lowest grade of II - buildings that are "of special interest, warranting every effort to preserve them".

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