Many people love the elegance and glamour that comes with Grade listed property, and help is available to arrange a mortgage.

Depending on your circumstances, arranging a mortgage for a property purchase can be a challenging task. However, if you are looking to buy a listed building, there are additional challenges to overcome when arranging a Grade listed property mortgage.

However, it should be noted you can get a mortgage on a grade listed property. As long as you are aware of the additional challenges and tailor your application to be as attractive as possible, there is no reason why you cannot receive funding for this style of property purchase.

What is a listed building?

A listed building is found on the National Heritage List for England. If a building is deemed to hold particular historical or architectural interests of national importance, it should be protected. A building’s place on this list offers protection against change or development, hopefully preserving a piece of the past effectively.

Are there grades of significance for listed buildings?

Yes, there are three main categories for listed buildings:

  • Grade I, which is for buildings of the utmost significance
  • Grade II*
  • Grade II

Around 92% of all listed buildings are classed as Grade II buildings, so if you own or hold an interest in a listed building, it is likely to be a Grade II building.

How can I find out if a building is listed?

The best place to start to verify if a building is listed is to visit the Historic England website, and search National Heritage List for England list page. This page can be found here. You can search by postcode or keyword.

What do mortgage lenders think of Grade listed property mortgage applications?

You will find that there is a range of opinions relating to listed buildings from mortgage lenders. Some lenders will not offer a mortgage for any listed property, while some are happy to provide a mortgage, subject to the standard conditions, on the different grades.

The listed property type lenders are most comfortable with is the Grade II listing, which is the most common type of listed building.

The lender will consider the risk associated with the property. If they deem a greater than usual risk, the applicant will likely receive a more expensive offer. Some lenders will cap the maximum loan to value (LTV) rate at a lower rate for listed buildings than for a more general property. Likewise, some mortgage lenders restrict the loan term to 20 or 25 years for a listed property.

What should I do differently when applying for a mortgage on a grade listed building?

The application process is mainly the same, but you should make as robust an application as possible. Also, if you can provide further supporting evidence for your application and about the building, it is likely to be of benefit.

You will also find speaking with an expert with a track record in assisting applicants in applying for a mortgage on grade listed buildings is beneficial.

How to explore your mortgage options with The Money Hub

Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.