Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Specialist Lending Could Unlock 1.5 Million 'Unmortgageable' UK Properties

Together has reported that 1.5 million properties in the UK are considered “unmortgageable” by mainstream lenders. These properties include homes deemed uninhabitable, those affected by substantial Japanese knotweed, properties with flying freeholds, and those built using non-standard construction methods.

According to Together, many of these properties could be repaired, improved, and eventually moved back into long-term lending. The company highlighted that short-term finance, such as bridging loans, can provide buyers, landlords, and investors with the means to refurbish these properties and make them suitable for mainstream mortgages.

Together’s research also indicated that demand for these types of properties remains strong, despite restrictive criteria from high street lenders. The company noted that first-time buyers are particularly affected by these restrictions, often limiting their property choices due to a lack of awareness about specialist lending options.

Together emphasised the importance of education around specialist lending, stating that many buyers are unaware of the alternatives available when mainstream lenders reject a property. The company called for greater industry efforts to inform buyers, homeowners, and investors about the range of options outside the high street, in order to challenge the perception of “unmortgageable” properties.

For UK letting agents and inventory clerks, these findings highlight the potential for increased activity in the market for properties currently deemed unmortgageable, provided that awareness of specialist lending solutions continues to grow.