Mortgages in high risk flood areas

dander

Does anyone know if buying a house in a high risk area for flooding would cause issues with getting a mortgage? I know it impacts insurance, so it's purely the mortgage I'm asking about here. I'm toying with buying something on a development that went up about 20 years ago and is situated on a small island, so the houses have river on both sides. The location is the attraction, but obviously comes with flood risk. I would be buying at a LTV of 30% max. Not planning to buy anything on the market currently, just pondering what the issues would be if I looked at moving in a year or so.

kingstreet

Usually at valuation stage the surveyor will point up the flood risk issue then the lender will ask if the property can be insured at standard terms. The mortgage outcome will depend on the insurability.

dander

Thanks, that's really useful. That's something I can get investigated and lined up ahead of any mortgage application. Certainly something that would be easy to discuss at a viewing to prepare for any issues. Pretty sure the houses have been built with flooding in mind, which should help.

born_again

I Know some banks will not.
Might be worth asking a mortgage broker before looking. As they will/should know who you can use.