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Mortgage Advisor & Director
Studio flats - which typically consist of a single room housing a bedroom and living space with a separate bathroom - are popular among homebuyers on a budget as well as landlords looking for a profitable investment.
Here you will learn everything you need to know about getting a residential or buy-to-let mortgage on this type of property.
Can you get a mortgage on a studio flat?
Yes. All of the UK’s mainstream mortgage providers lend on studio flats, and there are only a handful of specialist lenders and building societies who will refuse to outright.
Residential and buy-to-let mortgages are available on this property type but there are a few additional requirements for mortgages on studio flats to be aware of, including the minimum square footage they can be, a minimum value, and specific deposit requirements.
Specialist advice is available for anyone who is buying a studio flat, either to live in or as an investment, as there are brokers at Teito who are experts on these properties.
Eligibility criteria
The eligibility requirements to get a mortgage on a studio flat are as follows:
- Square footage: Some mortgage providers require the property to have a minimum of 30-35 square feet of floor space or they will not lend on a studio flat. A few lenders have higher requirements than this, specifying at least 50 square metres.
- Property value: Some lenders impose specific minimum valuations on this property type, and won’t offer a mortgage unless it is worth at least £100,000 to £300,000.
- Deposit requirements: The minimum amount you will need is 5-10% of the property value, but a few lenders have higher requirements for studio flats. In some cases you might need a minimum of 15-20%, especially if the flat is a new build property.
- Facilities: To qualify as a studio flat, most lenders will expect the property to have a kitchen facility and separate bathroom, although the vast majority will.
- Other requirements: The general eligibility requirements for a mortgage will obviously apply too, which means the lender will review your credit history, age and employment situation to decide whether to offer you finance to buy a studio flat.
How to get a mortgage on a studio flat
To get started, we recommend reading up on the documents you will need to provide for your mortgage application and downloading your credit reports in advance. Having this paperwork ready to go can help you save precious time in the long run.
More importantly, it’s a good idea to speak to a mortgage broker who specialises in studio flats before you approach any lenders. Given that criteria can vary for this property type, you need an expert in your corner to find the ideal lender for your specific property.
At Teito, we have brokers on our books that arrange studio flat mortgages every day. Hit the button below to access a free, no-obligation chat with one of them today:
Get tailored advice on studio flat mortgages
Which lenders offer mortgages for these properties?
There are at least 60 mortgage lenders available for studio flats, which represents a fair percentage of the UK market. Below you will find examples of mortgage lenders for this property type and some of the specific criteria they will require you to meet.
- Santander: Will lend with no caveats providing the valuer’s report is satisfactory.
- Nationwide: Will cap the LTV at 75% for new build studio flats and at 85% for second hand ones (i.e. you will need a minimum deposit of 15-25%).
- Bluestone: Will not lend to borrowers who are using the Deposit Unlock scheme.
- NatWest: Has size requirements of 30 square feet for studio flats, but this must exclusive any balconies or covered external areas.
- Furness Building Society: Minimum floorspace size is 50 square feet.
This is merely a snapshot of the leaders currently available - speak to a mortgage broker for more information.
Getting a buy-to-let mortgage on a studio flat
There are roughly the same amount of available lenders for buy-to-let mortgages on studio flats compared to residential ones, but there are a few additional requirements to meet:
- Deposit requirements are higher and typically start at 20-25% (75-80% LTV)
- The condition/quality of the property will be factored in
- It’s location and how in-demand it will be among tenants will be considered
- The projected rental income must be 125-145% of the mortgage payments
At Teito, we have buy-to-let mortgage brokers who specialise in studio flats, and they are well placed to help landlords secure the best deal for this property type.
Why choose Teito for your mortgage needs?
We help customers secure the best mortgage rates and deals on studio flats every day. There are brokers at Teito who specialise in this property type and they have a strong track record arranging both residential and buy-to-let mortgages on them.
Here are just some of the reasons people choose our brokers for their mortgage:
- Our advisers specialise in studio flats
- They can access exclusive rates and deals
- We are 5-star rated on leading review websites
- It takes minutes to secure an agreement in principle on Teito
Ready to take advantage of a free, no-obligation chat with a broker who specialises in studio flats to find out how much they could help you save? Get started here.
FAQs
A small studio flat would be a property of this type that measures in at less than 30-35 square metres in floor space. There are approximately 14 lenders who specify no minimum floor space size, and they will assess your application on a case-by-case basis.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.