With the housing market getting increasingly more of a seller’s game and less of a buyer’s, flats are becoming increasingly popular for those looking to buy a home. Flats are often more readily available than houses, they are easier to maintain and they are often a more sensible solution for single professionals, couples and small families for example.


Can You Get a Mortgage on a Flat?

The simple answer is yes, just as you can with a house, you can get a mortgage on a flat. The number of people in the UK buying flats and getting mortgages on them is increasing, with flats often being a simpler and easier home solution.

However, when getting a mortgage on a flat there are additional considerations to take into account which can make things more complicated than mortgages for houses. Some of these considerations include:

  • Your choice of mortgage lenders may be fewer (some flats need specialists)
  • Whether your flat is freehold or leasehold (freehold mortgages are harder to get)
  • Loan to value ratios (these are often lower for flats)
  • The type, location and size of your flat (mortgages will vary depending on this – for example, there is a minimum size flat for a mortgage)
  • Lease lengths


Types of Flat Mortgages

As outlined above, flat mortgages vary depending on the type of flat that is being bought. Some of the most common types of flat for buyers to enquire about in terms of mortgages are:

  • Flat above shop mortgage
  • 2 bedroom flat mortgage
  • 1 bedroom flat mortgage
  • Freehold flat mortgage
  • Studio flat mortgage
  • High rise flat mortgage

You need to consider the type of flat you are looking to purchase to establish whether you will be able to maintain a mortgage on it.


What is a Freehold Flat Mortgage?

A flat described as leasehold means you’re provided with a lease from the owner – known as the ‘freeholder’ – for a certain length of time. A freehold flat or property is when you own the building and the land it occupies outright. You’ll be named as the ‘freeholder’ in the Land Registry.

Flats are usually leasehold, and those that are freehold are usually a lot more complicated and difficult to get a mortgage for. The main reason for this is because within the building your freehold flat is situated, you are reliant upon your neighbour to maintain their part of the structure such as the roof mains walls or foundations. However, there probably won’t be a clear legal obligation or agreement between you to carry out those repairs or spend the money on sharing the cost of those repairs. This causes complications.

Because of the legal problems associated with a freehold flat the value of these properties are often negatively affected. As a result of these complexities, lenders are often reluctant to lend on freehold flats. To get around these sorts of problems, the best course of action is to seek the professional advice of a specialist within the area.


Get Mortgage Advice For Your Flat

Mortgages for flats and apartments aren’t always simple and there can be many other factors to take on board in comparison to house purchases. However, there is a way to make the process easier and ensure you’re getting the best rates and that is to speak to a mortgage advisor. The Mortgage Mom offers mortgage advice on a range of properties, including high net worth properties, maisonettes and much more.

Ready to Sort That Flat Mortgage?

Getting a safe mortgage is essential when buying a new flat. The Mortgage Mom are here to make sure that happens.

Contact us today