What is the minimum size for a flat to get a mortgage?
Answered on 15 June 2017 by Nick Morrey
I own a small studio flat in London which I am considering selling. However, several estate agents have advised me that it won't sell as it is too small to get a mortgage on as mortgage providers have toughened up lending rules recently. Is there a current minimum studio flat size for a mortgage & are there any lenders that will provide mortgages for smaller studio flats?
Minimum size for studio flat mortgages
The usual minimum for a studio flat to be acceptable for a mortgage is 30 sq metres. There are a couple of lenders who do not state a minimum size for studio flats because their suitability as security depends not only on their size and location, but how easy they will be to sell if the lender has to take possession. If your local estate agents are telling you that it won't sell then this is also likely to put lenders off.
Selling a studio flat mortgage-free
However not all buyers will require a mortgage, either having cash in the bank or raising it on their main residence. In this instance you just need to find the right buyer for your property and if the local estate agents can't do this then look towards one of the larger up-market firms who will probably have clients on their books looking for a studio flat in the right part of London at the right price.
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