Listed Building Mortgages

Looking for a mortgage on a listed building? An expert broker can help guide you through the mortgage application process.

Are you looking to purchase a listed building?

Home Property Types Listed Building Mortgages
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Nathan Porter

Reviewer: Nathan Porter

Independent Mortgage Advisor

Updated: March 18, 2024

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

September 13, 2022

If you are hoping to buy an architecturally significant property to be your home and it’s deemed as historically important, such as old churches, former windmills, once-working mills, thatched-roof houses, or converted lighthouses, it could be a listed building.

From a mortgage perspective, these properties fall into the category of ‘non-standard’. However, most lenders will assess applications on a case-by-case basis, so with a good broker in place and our guide to help explain the process, you can be much more well-informed from the start.

Can you get a mortgage on a listed building?

Yes! It is certainly possible to get a mortgage on a listed building, albeit it’s going to be slightly different than if you were looking at financing a modern-day standard home. Banks will look more closely at your circumstances, most likely requiring a report from a professional valuation and attempting to ascertain whether the property is marketable, should the need arise for them to repossess their home and recoup their money.

While each lender will take the risk element into consideration and make their judgement and offer accordingly, with the help of an experienced broker to help you strengthen your application and talk you through your options there is always a chance you will be successful.

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Lending criteria for these properties

Most lenders are open to the possibility of offering mortgages for listed buildings, and have steps in place to allow it to happen. However, don’t be surprised if they mitigate the risk to their investment in your property by having a cap on the loan-to-value ratio, having stricter affordability criteria to allow for the fact a listed building is typically more expensive to maintain or repair, and demanding that any necessary renovation work is carried out on completion.

They could also have maximum mortgage term limits, such as 20 or 25 years, as is the case with Dudley Building Society for example, and they may be very strict about finding out whether the property is marketable.

More than 90% of the UK’s listed buildings are thought to be Grade II listed. The next most common is Grade II*, followed by the least common Grade I, for which there are far fewer obliging lenders. Therefore, it’s most likely that the home you’re hoping to buy is Grade II.

Grade I

Grade l is the top level and are classed as “buildings of exceptional interest”. Often these properties require the most care. For this reason, most lenders do not consider grade 1 listed property, due to potential issues with ageing structure and its habitability or saleability.

Thankfully there are several mortgage lenders happy to lend on grade 1 listed property.

Grade II*

Grade II* is the next level, and slightly more common, categorised as “buildings of particular importance, of more than special interest”. These are properties considered more mortgageable than grade 1.

Grade II

The good news is that because there are so many Grade II listed buildings, mortgaging them is not overly rare, so lenders have formulated criteria and expertise when it comes to assessing applications on them.

It’s more than likely banks and building societies will require this type of application to be referred for manual underwriting, and make their mind up from there. This is because there are many different variations of properties that fall within the listed category. For example, you could be looking at a flat in a listed building that requires a collective responsibility for the whole building’s maintenance, or the building could have a timber frame, or perhaps there is extensive disrepair.

Whatever the scenario, most lenders will probably only stretch up to an 80% loan-to-value ratio, so you will need at least a 20% deposit of the cost of the building. They will also look into the state of the property, which they will want to see a valuation report on.

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How a broker can help with your mortgage for a listed building

An independent mortgage advisor is an invaluable asset when it comes to complex applications. Those who specialise in particular areas of home financing, like the ones we work with, understand the market, what lenders are looking for, and where their limits lie.

Putting together an application for a listed building mortgage can be daunting because there are additional challenges, such as reports to submit, restrictions to overcome and statuses to prove, not to mention all of the usual eligibility factors to overcome.

An experienced broker will work through your application to make it as attractive as possible. If you get in touch, we’ll arrange for a specialist in this specific area of lending to contact you directly.

Which lenders offer mortgages for listed buildings?

Most in the market will at least consider it, especially for Grade II listed buildings. How willing they are to see past obstacles or restrictions is not as clear. However, lenders such as Halifax, Nationwide, Generation Home, Barclays, Pepper Money and Accord Mortgages will look at each application on a case-by-case basis and their decision will also be subject to a valuer’s report.

Due to the potential number of lenders involved – each with their own terms and criteria – the shrewd move here is to first speak with a broker who can review which one to approach that best suits your specific needs.

What type of insurance will you need?

It’s likely that you will need a specialist policy to reflect the type of building you’re borrowing on, so make sure you look into this before submitting your application, because some lenders will need reassurance that your listed property is insurable before they approve your mortgage.

This type of insurance tends to be more expensive than is standard, so some lenders might even look at the cost of this as part of your affordability criteria in case you’ll be paying very high premiums. For example, NatWest and Marsden Building Society specify that they would need suitable buildings insurance being in place and proof that the insurer is aware that it’s on a listed building.

Get matched with a broker who specialises in listed buildings

We work with specialist listed building brokers who are experienced and experts in their field. They understand the rules and regulations, they also know which lenders offer the best deals on such properties and how flexible each one might be.

If you’re looking at getting a mortgage on a listed building but don’t know where to start, our five-star rated partners are happy to speak to you about your situation. Call us on 0808 189 2301 or make an online enquiry today for a free initial consultation.

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FAQs

Yes, lenders are open to the possibility of offering buy-to-let mortgages for these types of properties. Less so if they’re Grade I listed however.

Other than what we have already mentioned, it might be harder to get an interest-only mortgage. Government-assisted schemes won’t be available, and any restrictive covenants on the property might demand repairs or restoration, which could ultimately affect your mortgage.

Stamp duty is not changed any differently on listed properties. See our complete guide to Stamp Duty Land Tax for the latest information about how it is calculated.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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