Most lenders have lists of certain types of property they reject for mortgages.
The reason is that they believe these will be difficult to sell if they are repossessed.
Brand New HomesLenders are of the opinion that new homes are over-valued by house builders keen to maximise their returns and will lose value faster in a downturn than older homes.
To counteract this lenders reduce the amount they are prepared to lend ion new homes with Santander requiring a 20% deposit for a new home double that required for existing homes.
The deposit required for a new-build flat is 30%.
Apartments in high rise buildingsOnce a building is more than five storeys high, many lenders will refuse to offer a loan.
Some will also refuse if the ground floor of a two-storey building is occupied by a business, especially a shop or restaurant.
Homes on flood plainsThe general rule is if you can get insurance the mortgage will be approved. No lender will offer a loan on a property that is not fully insurable.
If you can offer proof of insurance your application will be more likely to succeed. More tips to help
Avoid mortgage rejection