Getting a Mortgage on a Property with an Annexe

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Author: Elliott Culley - Director & Mortgage Adviser of Switch Mortgage Finance

You may not have been aware that getting a mortgage for a property with an annexe can be more difficult than you would have imagined.

You may be in the process of buying a property with an annexe either attached to the house or situated on a separate part of the land. You may have added an annexe as part of some home improvements to your property and now you need to remortgage your property.

Since the pandemic working from home has become more and more popular, with over 24% of people working a hybrid system in May 2022. As a result adding an annexe to a property has become a popular choice for homeowners.

What is an Annexe?

Commonly referred to as a ‘Granny Annexe’, the term refers to additional accommodation either attached to the main dwelling or in the grounds of the main property. An annexe ranges from one room attached to the main dwelling all the way through to a fully functioning property on its own. 

Can I Get a Mortgage on a Property with an Annexe?

Yes there are mortgage lenders who will offer a mortgage on properties with an annexe. However mortgage lenders do have different requirements to and it is possible to have a mortgage declined if you complete an application with the wrong lender. A mortgage broker is in a great position when it comes to knowing which mortgage lender can help. We have relationships with the lenders and can ask our dedicated contact to assess the property before a full application takes place. This can take the stress and worry out of a mortgage application and save a huge amount of time, making sure the correct lender is approached.

Is it Difficult to Get a Mortgage on a Property with an Annexe?

Although mortgage lenders have their restrictions it shouldn’t be difficult to obtain a mortgage on a house with an annexe, provided you know which mortgage lender to approach. It can be difficult if you don’t have the necessary support. This is why we would always suggest using an experienced mortgage broker. It is our job to ensure obtaining a mortgage on a house with an annexe is not difficult

Speak to an Expert!

elliott-culley-mortgage-adviser- director-of-switch-mortgage

Contact us today for expert advice and guidance on your unique mortgage and property needs. We will work with you on a one-on-one to basis to help you find the right solution for your needs.  

With our experience you can rest assured that you are in good hands when it comes to securing the financing you need for your property.

What Questions do Mortgage Lenders Ask About a Property with an Annexe?

The mortgage lender will want to know whether the annexe is on the same title deeds or whether the annexe is a separate entity or connected to the main home.

They will want to know who lives in the annexe and whether it is used for personal or commercial use.
They will also want to know the structure, size and have a look at the floorplan of the annexe.

What Are the Most Common Reasons Mortgage Lenders Decline a Mortgage On a Property With An Annexe?

Mortgage lenders have concerns if you are sub letting your annexe. This will not comply with the terms and conditions of a residential mortgage. Lenders are expecting the annexe to be lived in by a close family member.

If the annexe is larger than the main dwelling this can also cause an issue with some lenders.

If the annexe is self-contained and not attached to the main dwelling, some mortgages lenders will decline the application.

If the annexe has its own kitchen, some mortgage lenders will decline your application.

Mortgage brokers know which lenders are best for particular annexes and it is advised to speak to one to help you. 

mortgage property with annexe. Switch mortgage finance. whiteley & Fareham

What Deposit Do I Need to Mortgage a Property with an Annexe?

There are no restrictions placed on mortgages for properties with an annexe by mortgage lenders. The same rules will apply here as would do for a standard house purchase.

You will need a minimum 5% deposit, however the larger deposit you put down, the cheaper the interest rate and you will have a wider selection of mortgage lenders. When considering a purchase of a property with an annexe it is advised to have a wider selection of mortgage lenders.

Can I get a Mortgage with Bad Credit?

Yes it is possible to get a mortgage even with bad credit. It would completely depend on the severity of the bad credit, and your current position. It is always worth enquiring to see what your options are.

How We Can Help?

Finding the right mortgage when you have an annexe can be complicated.

We know which lenders to approach and can have your property pre checked by the lender saving you time.

We will guide you through the process, from reviewing your property, to finding the right lender for you. 

Why Switch Mortgage Finance