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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 4th December 2020*

Applying for a mortgage for an ex-local authority property can tend to be more complicated and costly than getting a mortgage for another type of property. This is because these properties are sometimes seen as riskier or higher cost investments, so not all lenders are likely to be up for lending against them.

However, while some lenders may decline, the good news is that there are lots of good options available to those looking to get a mortgage for an ex-local authority property. It’s important to be knowledgeable of the additional information a lender may require and what types of mortgage deals could be available to you.

In this article, we’ll cover…

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Can I get a mortgage on an ex-council flat?

Ex-local authority flats can offer good value for money, but when it comes to finding your ideal mortgage lender, you may encounter some stigma and stipulations.

Lender reticence on ex-council flats can come from the perceived value of the property.

When making a judgement on the property, a lender is likely to look at…

  • Whether the area is surrounded by flats owned by the council, as opposed to privately owned property.
  • What the construction type of the flat is.
  • Whether the flat is in a high-rise block. This is seen as a higher risk, so some lenders may refuse to lend.
  • Whether there’s an external walkway to access the flat. Some may also refuse to lend if a flat has this feature.
  • How long the leasehold is on the flat. The longer the leasehold, the less risk to the lender.

Any of the factors stated above could affect the mortgage deal offered and result in extra stipulations, such as a higher deposit rate.

So, how do you get around the red tape to secure the best possible mortgage for an ex-council property? The best way to get a mortgage for an ex-council flat is to speak to an expert broker who has specialised experience in securing ex-council flat mortgages. This can save you the trouble and impact to your credit rating of a failed mortgage application.

Make an enquiry and we’ll help connect you to an expert mortgage broker.

Can I get a buy-to-let mortgage for an ex-local authority property?

Buy-to-let mortgages can have higher interest rates and fees than residential mortgages; they also often require a bigger deposit. However, getting a mortgage for a buy-to-let, ex-local council property can add an extra layer of bureaucracy to the process.

You may have to provide information on property build, property types in the vicinity, or even offer conveyancer reports. Arrangement fees for buy-to-let can cost thousands of pounds, and the added scrutiny that can come from purchasing a former council property could add to these fees.

But you don’t have to let a mortgage get in the way of securing your ex-council property for buy-to-let. Despite the challenges, purchasing these properties can be a lucrative investment over the long-term.

If you’d like help on getting a mortgage for a buy-to-let, ex-local council property, get in touch on 0808 189 2301 or make an enquiry with Online Mortgage Advisor.

How can I get a mortgage on an ex-council house?

Lenders may request some additional information before deciding whether to make you an offer for an ex-council house mortgage.

Decisive factors could include…

  • The area that the home is in: is it surrounded by council-owned homes or private properties?
  • The ex-council house construction type, or build.
  • The perceived value should there be a resale of the property.

Despite the potential roadblocks, remember that there are still plenty of options available regardless of the area and construction type of your desired ex-council house. Contact us to get advice from a specialist mortgage broker for ex-council houses. They can easily compare all options on the market to find your most suitable offer.

How to find lenders for ex local authority mortgages

To find lenders for ex-local authority mortgages, you will need to thoroughly understand the mortgage market as some lenders may not offer mortgages for ex-local authority properties.

Others may offer you a lower loan-to-value ratio, or impose higher deposit requirements. Some building construction types may be considered unmortgageable by some lenders, so it’s best not to make any offers before you’ve checked the lenders requirements for ex-local authority mortgages.

For advice on all types of ex-council properties and mortgages, call Online Mortgage Advisor on 0808 189 2301. The mortgage brokers we work with can save you time and money by taking you directly to lenders willing and ready to offer a mortgage on the ex-local authority property of your choice.

Speak to an expert mortgage advisor today

Purchasing an ex-council flat or house may offer good value for money, but it can have serious implications on whether your mortgage application is accepted or add costly stipulations to your mortgage. That’s why experts recommend you speak to a mortgage advisor before making any offers to potential lenders.

Even when it seems you have a limited number of mortgage options, within a niche property mortgage market, there are always better deals than what an initial surface layer search will uncover! If you’d like help in finding a mortgage broker with expert knowledge of ex-local authority property mortgages, call Online Mortgage Advisor on 0808 189 2301 or make an enquiry.

Updated: 4th December 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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