Mortgage rejected due to amount of rented property in building?

gabrielr

I am first time buyer and recently made a successful offer on a flat. I had a mortgage decision in principle in place with Nationwide (arranged through a broker) and all seemed to be going well. Initial checks against me went fine (I assume) and a valuation appointment was arranged. Nationwide then cancelled the mortgage application based on the surveyors comments, as follows:
“The subject estate/blocks of flat is dominated by demand from investment landlords and tenants and there is nominal/no owner occupier demand. As a result, the valuation has been declined”
My broker suggested we look at another lender but has today told me that several of those he has spoken to have said they will not lend due to the high volume of rental properties in the block. Others have just said they will base their decision on surveyors comments.
Has anyone else ever heard this given as a reason? Is it very common?
I don't really feel inclined to try with another lender for this property based on my broker's advice but am wondering if there is anyway to overcome this problem? Is it likely to continue to be an issue? I am worried that most of the properties I can afford where I live are flats and are likely to be in a building where many or most rent. Any advice/info?

Lilla_D

Yes, it happens. I wouldn't say very common, but not unheard of. Dependent on your situation, the broker could try other lenders or you could try a different building...

tonyh66

The scurge of the buy to let landlord, taking the bottom rung of the property ladder away. You only have 2 choices, find a lender who will say yes or find a different property.