a little advice please?

rach!_3

hi there,
well ive come on today just to ask something.
i know of someone who has apparently been turned down for a 100% mortgage because the property they want to buy is ex council.
is this correct or is the advisor having them for idiots? why is an ex council property any different to any other type of property?
can/will a mortgage company say they wont lend 100% on an ex council house?
i ask also as i myself am hoping to get onto the property ladder soon and wouldnt like to go for an ex council house if can affect mortgages in such a way.
thansk in advance
rach xx

silvercar

Depends on the property.

If it has a non-standard construction, if it is a flat in a high rise block, if there are dodgy stairwells, if there are very few owner occupiers in the immediate area can limit some lenders ability to lend.

On the other hand if it is a standard construction house in an area where quite a few council houses have been bought, there should be no problem.

Madjock

it doesn't depend on the property, some lenders will not lend at all on ex-council properties, some will not lend 100% LTV. The condition of the property or the local area are not factors.

herbiesjp

SIlver and Madjock you are both right.

There are lenders that will have a definite yes or no criteria based on the fact the property is an ex council property.

However, the lenders that say yes, will indeed look at the areas highlighted by silvercar, as well as market demand for the property. A lot of the time it is down to the surveyors comments as to whether or not a property is suitable or not.