Securing a mortgage on one of the reported 500,000 Grade 1 and Grade 2 listed buildings in the UK does not have to be a complicated process.
There are at least 18 lenders offering Grade 1 listed building mortgages and 35 lenders providing Grade 2 listed building mortgages.* This does not include the private banks and specialist lenders keen to fund the purchases and remortgages of those special properties.
If you are in the process of purchasing or remortgaging a historic home, country house, converted mill, or even a castle, it is possible to secure fantastically priced rates. If you qualify, the lowest rates start at 1.14%, although the smaller lenders will charge more.
Aaron Strutt, product director at Trinity Financial, says: “Many of the bigger banks and building societies are happy to provide listed building mortgages and they tend to have the cheapest fixed and tracker rates.
“The lenders are very reliant on their property valuers and they will only provide funding if they consider the property to be suitable security for the mortgage. If your property has lots of land, outbuildings, or any form of commercial premises, you may need a mortgage from one of the smaller providers or private banks."
Some of the lenders providing listed building mortgages include:
|Mortgage lender||Grade 1 listed properties||Grade 2 listed properties|
|Accord Mortgages (part of Yorkshire Building Society)||Yes||Yes|
|Nationwide for Intermediaries||Yes||Yes|
|HSBC for Intermediaries||Yes||Yes|
|Platform for Intermediaries||Yes||Yes|
|Family Building Society||No||Yes|
|Virgin Money for Intermediaries||Potentially||Potentially|
Call Trinity Financial on 020 7016 0790 to secure a listed building mortgage or complete our enquiry form
*Data provided by KnowledgeBank
According to Historic England Grade I buildings are of exceptional interest and only 2.5% of listed buildings are Grade I.
Grade II* buildings are particularly important buildings of more than special interest and 5.8% of listed buildings are Grade II*.
Grade II buildings are of special interest; 91.7% of all listed buildings are in this class and it is the most likely grade of listing for a homeowner.
You can find out if a property is listed using the search engine on this link.
Some mortgage lenders will cap the maximum loan-to-value so borrowers will need a 20% or 25% deposit to secure a listed building mortgage. There are banks and building societies happy to provide lower deposit mortgages to those with a deposit of at least 10% if the have a good income and they can demonstrate their mortgage affordability.
If you have credit cards, loans, or kids in private school, the banks and building societies will want to know how much they cost you each month. If you are in a position to repay the debts before the mortgage completes, the lenders will look to ignore the costs, although it might be a condition of the mortgage offer the debts are repaid.
There are at least 50 lenders offering interest-only mortgages and many of these will be available for listed properties. This is providing borrowers have equity in their property and they earn enough money.
Some private banks allow part interest-only and part-capital repayment mortgages so most of the debt is on interest-only and this reduces the monthly repayments.
Other lenders allow "bullet repayments" so the lenders specify in the mortgage offer how much clients need to overpay each year. This is often linked to their annual bonuses and designed to lower the outstanding mortgage balance over the short term.
Our brokers have access to a host of banks and building societies accepting retained profits and investment income as part of their mortgage affordability calculations. They will look at the applicant's overall financial situation to work out how much they can borrow.
Trinity Financial consistently arranges mortgages for clients with complex or less standard financial situations, and our team of expert advisers do everything possible to secure the cheapest rates and the fastest mortgage offers.
More of the lenders have specialist lending teams to agree on larger mortgage loans for clients buying unusual and unique properties. We have access to these separate and specialist processing teams.
We regularly work with clients over the phone to discuss applications and confirm the documentation we will require. Click on the link to view some of the mortgages we have arranged over the last ten years.