If you are interested in getting a mortgage on high rise flats, you may have heard about different terms used for such flats. There are many misconceptions about the definition of High Rise houses in the UK. But when we contact mortgage lenders, most of them will be agreed with the fact that any apartment building that is seven or more stories taller is considered a High Rise apartment. Most of these high-rise apartments are built by councils in the 1960 and 70s as affordable ways to provide homes to the urban population. Nowadays, the more expensive upper flats are being built in the United Kingdom. Now, as our title suggest, ‘Mortgage on High-Rise Flats’ could be more complicated than normal loan applications. Lenders don’t find upper-building apartments suitable for mortgages because of the risk involved and differences from normal structures. As we have discussed previously, these flats are constructed with low costs and cheap materials, which is also a reason why mortgage lenders repel from such construction. However, there are some exceptions where banks can lend money against this type of property. In order to get a mortgage on flats, it’s important to understand what kind of risks they pose. The main problem faced by borrowers who want to take out loans on high-rise properties is their higher cost compared to other types of homes. This means that if you borrow £100k at a 5% interest rate, then your monthly repayments would be around £500 per month. If you were to buy an average house worth £200k, then you would pay only £50 per month towards repayment. So even though the amount borrowed is the same, the payments made are much lower. Another major issue that arises due to the nature of high-rise buildings is the lack of space. These buildings tend to be very tall so; therefore, so, there isn’t enough room inside the property to store all the belongings needed. Therefore, people often need to rent storage units outside the building.

We would suggest you contact a specialist mortgage broker before starting your mortgage application process for a high-rise flat.


Damian Youell

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What are high-rise flats in the UK?

In the UK, high rise flats refer to multi-story residential buildings that are typically taller than four or five stories. These types of buildings are also known as highrise apartments or skyscraper apartments. High rise flats can be found in urban areas, particularly in major cities such as London, Manchester, and Birmingham. They are popular among city dwellers due to their proximity to amenities and public transportation. However, owning a high rise flat can be more complicated than owning a traditional single-family home, particularly when it comes to securing a mortgage.

What are high-rise flats in the UK?

In the UK, high rise flats refer to multi-story residential buildings that are typically taller than four or five stories. These types of buildings are also known as highrise apartments or skyscraper apartments. High rise flats can be found in urban areas, particularly in major cities such as London, Manchester, and Birmingham. They are popular among city dwellers due to their proximity to amenities and public transportation. However, owning a high rise flat can be more complicated than owning a traditional single-family home, particularly when it comes to securing a mortgage.

What is an ex-local authority flat and how does it differ from other high-rise flats when it comes to obtaining a mortgage?

An ex-local authority flat is a property that was previously owned and managed by a local government body, such as a council or housing association. These types of properties may have different ownership structures and regulations compared to other privately-owned upper-level properties. As a result, obtaining a mortgage for a local authority flat may require additional documentation and may have different lending requirements. It is important to understand these differences and to work with a mortgage broker who has experience with local authority flats. If you are interested in buying such apartments, you can always contact a specialist mortgage provider to help you find the best mortgage deal.

How do ex-local authority flats and ex-council houses differ in terms of obtaining a mortgage in the UK?

Yes, ex-council houses are different from ex-local authority flats.

Council houses are typically single-family homes that were previously owned and managed by a local government body. These houses may have been built by the council and are often located in public housing estates. They are different from local authority houses, which are typically multi-story residential buildings that are taller than four or five stories.

Ex-council houses may have different ownership structures and regulations compared to other privately-owned houses, just like ex-local authorities’ apartments have compared to other privately-owned estates. Obtaining a mortgage for an ex-council house may require additional documentation and may have different lending requirements than a traditional single-family home. It is important to understand these differences and to work with a mortgage broker who has experience with council houses.

What are the factors that determine mortgage eligibility for high-rise flats?

The factors determining mortgage eligibility for upper-rise flats are typically the same as for any other property. This includes credit score, income, debt-to-income ratio, and the amount of savings available. Additionally, lenders may take into account the type of mortgage, the age of the property, and the location of the property. Ultimately, lenders will evaluate the financial situation of the buyer to determine whether they can afford to repay a loan on a property.

What are the different mortgages available for high rise flats?

There are several different categories of mortgages available for such houses, including fixed-rate, adjustable-rate, and interest-only mortgages. Fixed-rate mortgages are the most common type of mortgage for high rise flats, as they offer a stable interest rate over the length of the loan. Adjustable-rate mortgages have fluctuating interest rates and can be beneficial for short-term financing, as the initial interest rate is typically lower than that of a fixed-rate mortgage. Interest-only mortgages, meanwhile, allow borrowers to pay only the interest on their loan for a set period of time, allowing them to save on payments in the short term.

Factors to Consider When Finding the Right Lender for Mortgages on High-Rise Apartments

There are various factors involved in getting a mortgage to rise apartments in the UK. Some of them are mentioned below:

Financial Circumstances:

Every buyer has different financial circumstances depending on their profession and mortgage lenders access the applications on the basis of the nature of income and future affordability for mortgage repayments.

Income Sources:

Most of the main street lenders are interested in individuals who make 100% of their living from a sizeable PAYE salary. It is different for self-employed individuals who are hoping to include commission or bonus income for the loan application.

Loan Amount:

The maximum limit depends upon the lender’s policy. Generally speaking, the minimum loan amounts range between £25K -£75K, while the maximum limits vary between £1 million – £ 2 million for similar estates.

Location:

As already stated earlier, location plays a vital role in deciding whether a borrower gets approved or not. Banks usually prefer lending money to those applicants who live close to the workplace.

Risk Assessment:

Banks assess each individual case based on their own criteria. For example, one bank might consider the applicant’s credit history, whereas another might look into his/her employment status. A good credit score is essential for obtaining a mortgage on a high-build apartment.

Deposit Amount:

As per all other mortgages, while buying a property, the greater the deposit, the more the chances of the application approval.

Credit History:

Bad credit mortgages are possible but only from some street lenders. Credit history always plays an important role in the approval of the mortgage application when buying these houses.

Personal Circumstances:

Lenders can also look forward to your expenditure and existing financial obligations to determine if you can make repayments on your mortgage or not.

Property(Height & Location):

Property height and location also matter for banks and building societies while accessing the mortgage application. If your property is above 7 or over storeys, it will be a red flag for many lenders. Even having a lift may also affect the mortgage on a high rise flat.

Buy to Let on High-Rise Flats

The term ‘buy-to-let’ refers to renting out a residential property to generate additional cash flow. Many investors choose to invest in buy-to-lets rather than traditional investment options like stocks and shares. Buy-to-let investments offer several advantages, including tax benefits, capital growth potential and flexibility. Investors can use the rental income generated through the buy-to-let property to reduce personal taxation liabilities. They can also increase their wealth without incurring significant debt.

Next Steps

In conclusion, obtaining a mortgage for such houses can be a complex process. However, with the right knowledge and guidance, it is definitely possible. Our team of specialist mortgage brokers at Needingadvice.co.uk Ltd are experts in this field and are dedicated to finding the best mortgage solution for you. We understand the unique challenges of obtaining a mortgage on such houses and are committed to helping you navigate the process easily.

We invite you to visit our website to learn more about the services we offer and the various mortgage options available for similar properties. You can also contact our specialist team directly for a personalized consultation. Don’t let the process of obtaining a mortgage overwhelm you. Allow our team of experts to guide you every step of the way.

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Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

FAQs

Can I get a buy-to-let mortgage for a block of apartments?

Yes, you can apply for a buy-to-let mortgage for a block of apartments. You should note, however, that there are certain restrictions that apply when applying for this type of mortgage. These include:

• The total value of the properties must be less than £500,000.

• The sum of the purchase prices cannot exceed £250,000.

Can I get a buy-to-let mortgage for High-Rise Block Flats?

Yes, you can apply for a buy-to-let mortgage for such apartments. However, there are certain restrictions that apply when applying for this type of mortgage.

• The total value of the properties must be less than £750,000.

• The sum of the purchase prices cannot exceed £350,000.

• The total number of units must be no more than 12.

• The average gross annual rent must be no more than £20,000

We will advise you to contact a specialist advisor to confirm these figures.

Why do buyers struggle to get a mortgage on apartment blocks?

There are two main reasons why people struggle to get a mortgage on apartment blocks. First, they have a limited credit history because most of them have never owned a house before. Second, they often don’t have enough equity in their current home to put down as a deposit. This means that they need to borrow money from friends and family to fund their purchases.

About The Author

mortgage broker damian youell



See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of NeedingAdvice.co.uk Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started NeedingAdvice.co.uk as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.