An exceptional circumstances mortgage is a way of describing borrowing that needs a closer look. You might have found a home built using an unfamiliar method, want to turn a building into a home, or earn a good income that varies from month to month. Each raises a different question. Identifying yours first can save you time and expense when you apply.
Will the lender accept the property?
A lender considers the home as security for the loan. Two listings that both say “timber frame” can describe quite different buildings. Ask the agent when the home was built, how the outside walls are constructed and whether the seller has a survey, warranty or records of alterations. Give your adviser the listing and those details before paying an application fee.
For a converted building, ask when the conversion took place and which completion documents are available. For a listed home, tell your adviser about any alterations you plan and ask your conveyancer which consents to check. A former council flat, a listed building or a timber-frame house can each be acceptable to a lender. The construction, condition and valuation of the particular property matter.
What if the lender values the home below the agreed price?
Suppose you agree £300,000 for a converted barn and have £60,000 for the deposit. You need a £240,000 loan. If the lender values the barn at £280,000 and, for illustration, will lend up to 80% of that valuation, the maximum on that basis is £224,000. At the agreed price you would need £76,000 of your own money, leaving a £16,000 gap before fees.
Ask whether the issue is the valuation or whether the lender has ruled out the construction altogether. A lower price or larger deposit could help with the figures. If the lender will not accept the property as security, that is a different conversation.
What if you plan to build, renovate or run a business there?
Tell your adviser how you will use the building from the day you buy it. Buying a finished barn conversion to live in is a different proposal from buying an agricultural barn and funding the conversion yourself. For the second project, bring your plans, the status of planning permission, a costed schedule and the cash available for the first stage.
One practical question for a self-build mortgage is when the money will arrive. If a builder needs paying before the lender releases the next instalment, show your adviser the dates and amounts. That can reveal a funding gap even when the total project budget looks affordable.
If part of the property will be a shop, guest house or other business, explain which rooms you will live in, which will generate income and whether you need that income to make the repayments. Your adviser can then check whether residential, mixed-use or commercial finance is appropriate.
What if your income is the part that needs explaining?
If you work for yourself, separate business turnover from your personal earnings. A sole trader can start with accounts and tax calculations. A company director may need to show salary, dividends and company accounts. If you have several sources of income, set out how often each is paid and whether you expect it to continue. Greenacre’s guide to mortgages with complex income explains the different income types.
If you are a contractor, have your contract rate, remaining term and any recent gaps between assignments to hand. For example, a day rate tells a lender little about an unpaid break between projects. Our contractor mortgage guide explains what else an adviser may ask for.
What should you do if a lender has already declined?
Start with the reason the lender gave you. Was the concern the property, the amount you wanted to borrow, the evidence of income or an entry on your credit file? If a credit issue was raised, note the amount, date and whether it has been settled. If the decision followed a valuation, bring any feedback the lender shared. These details help an adviser assess whether another application is worth making and what evidence it would need.
Greenacre offers specialist mortgage advice in Sunninghill and Ascot, across Berkshire and in West London, including Hounslow and Twickenham. If an option is available, ask for the interest rate, all fees, monthly payment and any early repayment charge before deciding whether to proceed.
Frequently asked questions about unusual mortgages
Can I get a mortgage on a non-standard property?
Yes. Many specialist lenders are willing to consider properties that fall outside standard construction or lending criteria.
What if a bank has already declined my application?
Different lenders use different criteria. A decline from one lender does not mean every lender will reach the same decision.
Are there lenders for complex circumstances?
Yes. Specialist lenders often work with borrowers who have unique circumstances, complex income structures or previous credit issues.
Should I use a mortgage broker for unusual mortgages?
A mortgage broker can help identify suitable lenders, present your application effectively and improve your chances of securing the right mortgage.
Discuss your property or circumstances with Greenacre
For a property question, start with the listing, intended use, price and deposit. For an income question, tell us how you are paid and what changed recently. Ask Greenacre about your mortgage options, call 020 3393 9222 or email info@greenacrefs.co.uk.
Your home may be repossessed if you do not keep up repayments on your mortgage.