Why are unusual properties often challenging to finance?

Wednesday August 28, 2019

At largemortgageloans.com we help people overcome a variety of challenges to secure their ideal property. Often this relates to the client’s individual situation, but in many cases the property itself also proves a challenge to finance.

Case profile

We were recently contacted by a client who faced challenges in both their personal situation and the property they were looking to buy. The investment was a buy to let London property and would be the first purchase in their personal name. Although they didn’t own any residential real estate, they were settled in a marital home and were very clear that this was purely an investment purchase.

The property itself proved challenging to finance as it was a commercial premises with two separate addresses on the title deeds and two kitchens. This is an unusual case and contravenes the regulations of most lenders.

The client’s personal situation also proved challenging because, as they did not own any other property in their own name, lenders were concerned the client would move into the property themselves, therefore removing the rental yield lenders would be relying on to service the interest on the loan.


Our relationship with a specialist lender allowed us to personally present the client’s case and verify the security of their current living situation. We were also able to give assurances to the Underwriter that – although it had two kitchens – the property would not be split into separate units and one of the kitchens could be easily removed if necessary.

This is just one example of our ability to reach the decision makers who matter, and present the client’s individual situation to secure a successful outcome.

Loan amount:
3.24% 5 Year fixed rate
Loan To Value:64%
APRC:Overall cost for comparison 5.10% APRC representative variable
Term:20 Years
Type:Interest only
Loan purpose:Purchase
Lenders arrangement fee:2.00% of loan amount
Early repayment charge:
5% of the outstanding loan in Year 1, reducing by 1% year on year for 4 years. 2% of the outstanding loan amount in Year 5.


Overall cost for comparison 5.10% APRC representative variable based on 60 monthly payments at a fixed rate of 3.24% followed by 180 monthly payments at the lenders variable rate, currently 5.68%. Total amount to be repaid £1,836,655.16. As the mortgage rate is not fixed for the duration of the loan this amount is illustrative and may be vary in particular as a result of variations in interest rate.

Because part of the loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the LIBOR rate rose to 7.00%, the APRC could increase to 9.1%. The actual rate and product available will depend upon individual circumstances and may not be available to everyone. Ask for a personalised illustration. 

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

 The FCA does not regulate some aspects of Buy to Let mortgages and commercial mortgages.

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We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.


Specialists in creating innovative and bespoke funding solutions.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home.  

largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: www.fca.org.uk. The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Largemortgageloans.com Ltd is a licensed credit broker, and not a lender.

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.

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Largemortgageloans is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London