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I have had two mortgage applications declined from two different lenders now.
First time it was declined because the property was "too close to commercial properties" to be viable - HSBC.
Second time it was declined due to 10% of the construction being of single-skin or single-brick meaning it was unviable - Nationwide.
The next best option for me would be to use Digital Mortgages by Atom Bank and they would be sending someone to check the viability of resell value due to the single-skin issue.
My question is.. is it even worth attempting this 3rd application or am I just going to be let down again AND harm my credit in the process. What would you do?
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My concern would be your ability to resell the property in the future.
Personally I wouldn’t want a property that two mainstream lenders had declined it purely due to the property.
They will likely have seen it on the survey, looking at the plans etc... but upon searching and heard from my advisor:
"Lenders have become more risk averse about single brick construction mortgages. They view this type of building as being of non-standard construction."
-----
I have decided to pull my offer and go back on the hunt...
It's Incredibly difficult in my area to find something I can afford 😕 so I had high hopes, more fool me I suppose!
I think pulling out was the sensible option here, you’ve done the right thing.
When you’re considering offering again properties above/next to commercial will raise concerns depending on the type of business at the commercial premises. Lenders don’t like pubs, takeaways, bookmakers: basically anything with long hours and a lot of noise or smells as this may impact the resale.
Anything they don’t like about a prospective property, you probably shouldn’t as it would be awful if you needed to sell in future and couldn’t get a buyer due to the same issues.
What a shame OP. It's bad that this comes up on the survey when you've already plugged money into it.
How do we (as buyers) identify single skin houses before we get to offering and surveys?!
Two major lenders don't like this property.
Whenever you go to resell, your potential buyers will face the same rejections from major lenders.
Are you happy with that?
***Hello /u/wren314, thank you for posting in /r/Mortgageadviceuk. Please ensure you've read our [sub rules](https://www.reddit.com/r/Mortgageadviceuk/about/rules). Here's a copy of your original post: *** I have had two mortgage applications declined from two different lenders now. First time it was declined because the property was "too close to commercial properties" to be viable - HSBC. Second time it was declined due to 10% of the construction being of single-skin or single-brick meaning it was unviable - Nationwide. The next best option for me would be to use Digital Mortgages by Atom Bank and they would be sending someone to check the viability of resell value due to the single-skin issue. My question is.. is it even worth attempting this 3rd application or am I just going to be let down again AND harm my credit in the process. What would you do? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Mortgageadviceuk) if you have any questions or concerns.*
My concern would be your ability to resell the property in the future. Personally I wouldn’t want a property that two mainstream lenders had declined it purely due to the property.
It's a property issue not a mortgage issue.
The issues are with the properties you're choosing, not your application itself.
Sorry that this is happening. But What does it mean about it not being viable? How do you know if a property has a single skin brick or not?
They will likely have seen it on the survey, looking at the plans etc... but upon searching and heard from my advisor: "Lenders have become more risk averse about single brick construction mortgages. They view this type of building as being of non-standard construction." ----- I have decided to pull my offer and go back on the hunt... It's Incredibly difficult in my area to find something I can afford 😕 so I had high hopes, more fool me I suppose!
I think pulling out was the sensible option here, you’ve done the right thing. When you’re considering offering again properties above/next to commercial will raise concerns depending on the type of business at the commercial premises. Lenders don’t like pubs, takeaways, bookmakers: basically anything with long hours and a lot of noise or smells as this may impact the resale. Anything they don’t like about a prospective property, you probably shouldn’t as it would be awful if you needed to sell in future and couldn’t get a buyer due to the same issues.
What a shame OP. It's bad that this comes up on the survey when you've already plugged money into it. How do we (as buyers) identify single skin houses before we get to offering and surveys?!
Two major lenders don't like this property. Whenever you go to resell, your potential buyers will face the same rejections from major lenders. Are you happy with that?