Posted on 3 March 2014 by Adrian
We have put an offer in on a house with 10 bedrooms. We intend to move there with our two sons, plus my partners parents. The house is large, and we don't actually need all of the rooms, but it is the same price as many houses in the same area which are half the size. We would use the additional rooms for a home office, gym, and intend to turn a couple of them into en-suites for the other rooms. We have been declined a mortgage by Abbey because they say the house is too large. They don't believe we need something of that size, and think we may be intending to use it for commercial purposes. Realistically, are there any lenders who would be willing to lend to us? It seems ridiculous that they would be happy to lend the same amount of money for something which was smaller!
Unfortunately, there are a quite a few lenders, particularly those who are geared to automated high volume processing, that just don't have the underwriting flexibility to look at a case like this and make a sensible decision. They are scared that you will use the property for commercial purposes, and they don't have the set up to get an underwriter to manually look at the case.
However, there are certainly lenders who can look at the case on a more sympathetic basis, but they may not have the most attractive rates like Santander do, so we're looking at a more restricted market.
One alternative would be to look at getting a mortgage on a semi-development finance basis to enable you to complete the purchase, get the work done, and then we can look to remortgage you onto a more standard mortgage product and lender once everything has been finished ?
If you would like to discuss your case in more detail, then please contact one of our mortgage experts on 0344 346 3672.
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