We were founded in 1966 to offer mortgages to those that didn’t meet the ‘tick box’ of standard lending criteria. 50 years on and age, unusual income sources and atypical properties can still make getting a mortgage hard. We like to do things differently, looking beyond the norm, and using underwriters with years of experience to assess cases individually.
In the first of our complex case series we explain how we financed a second mortgage on an unusual rural property…
The Covid crisis may have ignited dreams of country living , but if a permanent move is not feasible, a second home could be the solution.
But whilst the vision is idyllic, some lenders see rural properties with outbuildings as ‘commercial’, creating a mortgage red flag. What’s needed is an individual approach.
THE CASE
We recently arranged a mortgage for a couple of London based lawyers looking to purchase a second home in Gloucestershire for £1.1 million, where stables gave rise to a potential mixed-use scenario. We reviewed the whole site, finding the ‘commercial’ element was actually a minority percentage.
OUR SOLUTION
At 40% LTV the couple’s monthly employment income met affordability criteria. Some lenders would dismiss a mixed-use site including stables as too complex, but moving beyond a tick box approach meant great business for us and a mortgage on a dream countryside home for the customer.
Mixed use rural properties – how Teachers Building Society can help:
- Maximum LTV of 80%
- Interest only maximum LTV of 70%
- Income from investment assets, pensions and annuities considered
- Complex properties: Analysis of site to determine proportions of residential and commercial
- Lending on second homes available up to 75%
Complex case challenge? call 0800 378 669
