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Mortgage declined because of "student area"

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  • Mortgage declined because of "student area"

    Hi all,

    After having our mortgage approved "subject to valuation" and thinking everything was going smoothly, I recently got a call from our broker saying the mortgage company has declined to lend because "the high percentage of student lets in the area affects the re-saleability of the house".

    This seems crazy. We live in a city with two universities, and we want to live pretty close to the city centre. If we exclude the really expensive areas and the really run-down areas, there's only student areas left. Are they saying we can't live in any of them? Our broker said that most high street lenders would have the same reaction. If that's the case, how does anyone (except landlords) ever buy a property in these places?

    Besides all that, we have a hefty deposit saved up, so we only need to borrow 25% of the property value. Surely the lender can't be suggesting that the house isn't worth £50,000? As first-time buyers we're finding the whole process very confusing.

    Has anyone experienced anything similar to this? Can anyone offer any advice on what our next step should be?

  • #2
    Re: Mortgage declined because of "student area"

    it's really seems crazy.

    Comment


    • #3
      Re: Mortgage declined because of "student area"

      Why not try looking at a long term secured loan as they are less fussy about
      student lets. If you have 75% of the purchase price and only want to lend 25% then its an an option but a slightly more expensive option

      Ged
      http://www.premierexpatmortgages.com
      [email protected]

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