how important is the property and local area in a house buying process?

Would you believe that a lender can refuse to mortgage a house if they have already offered on too many in the area?... Yes, it really can happen!

Lender does a post code search and they can decide that they have so called ‘overexposure’ in the area and so they will not want to take any more risk there.

Overexposure is often an issue on new build development sites and it is very frustrating! But it may also happen for older properties where lender sees too much risk in the particular area and they simply stop offering there.

There are many aspects related to property where even the most perfect case scenarios can go wrong.

A very important factor is the condition of the house you will be buying, whether it is in a habitable and approvable condition.

Also, if property is of a non-standard construction, or if it is in the area where for example there were mineshafts historically, a lender may refuse to mortgage on it.

Best thing you can do is to discuss the property you are buying with a broker who will have access to lenders offering on even the quirky builds or construction types.

Don’t think the only aspect of your mortgage offer is around your affordability! Property plays an important role here too.

If you have any questions, contact us for help.