Mortgages for Studio flats

Sweetpanda

Hello,

I recently starting looking to buy a flat in London, and I´m interested in Studio flats.

I found one, but after the valuation, the bank rejected the flat saying it was "too small".

Another lender rejected it for the same reason without even doing the valuation.

The flat was small indeed (17 square meters) but, flats that small and even smaller are common in London and are very expensive to rent, so I am a bit surprised by the decision.

After doing a bit of research, I was told that it was all a question of lenders,each have their own criteria for lending, and that some lenders do lend for studio flats.

Does anyone know who those lenders are, and/or had any experience with buying a studio in London?

Any input will be welcome.

Thanks in advance!

ACG

It will usually come down to a valuers comments. There may be the odd lender but i think this is something you will struggle with.

http://www.platform.co.uk/intermediaries/support/lending_policy/full_lending_policy.aspx#UnacceptableSecurity
With platform it doesnt meet criteria but they may consider it.

I think this is generally the rule and a lot of valuers will be reluctant to put their name next to it.

jmt

I don't know the London market, but I have just sold my studio flat in Harrogate and I had a mortgage on it from Skipton BS. I also know that the buyer has just got a mortgage on it with the Skipton BS.

Lizling

That's absolutely tiny, even for a London studio!

I know that Lloyds mentioned that a studio flat was unlikely to be a problem as long as it met all their other criteria. I do think that being that small might have been a problem though.