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Buying in the villages around Peterborough: what lenders look at

A good number of people who come to us are not buying in Peterborough itself. They are buying in Sawtry, Oundle, Yaxley, Whittlesey or one of the villages in between. The properties tend to be older and more characterful than a city estate, and that is exactly why lenders look at them differently.

6 min read

Construction is the first question, not the price

Most lenders are comfortable with brick and tile. Once you move away from that, the list of lenders shortens quickly.

Timber frame, thatch, stone, cob and anything described as non-standard construction all narrow the field. So does a property that has been extended in a different material to the original. None of it makes a purchase impossible; it makes lender choice the thing that decides the outcome.

If you are viewing something unusual, send us the listing before you offer. Establishing who will lend takes minutes and saves a great deal of disappointment.

Listed buildings and conservation areas

Plenty of village properties around Oundle and the stone villages are listed or sit in a conservation area. Lenders will generally lend, but they take a more cautious view: alterations need consent, repairs must use appropriate materials, and that affects both cost and resale.

Expect the valuer to be more thorough, and expect the process to take a little longer.

Drainage is a real lending question in the Fens

A property not connected to mains drainage will have a septic tank or a treatment plant. Lenders want to know it exists, where it is, that it complies with current regulations and that you have a legal right to use and maintain it, which matters if it sits on someone else's land.

It is a routine thing that becomes a problem only when nobody checks it until late. Ask the question at viewing stage.

Flood risk is worth checking before you fall in love with it

This is the Fens. Parts of the area around Whittlesey, March and the low-lying land east of Peterborough carry a flood risk rating, and that affects insurance.

The practical issue is not usually the mortgage directly. It is that a lender requires the property to be insurable, so if buildings insurance is difficult or extremely expensive, the lending becomes difficult too. Checking the flood risk and getting an insurance quote early is a sensible order of events.

Outbuildings, land and anything that looks agricultural

A paddock, a barn or a substantial outbuilding can change how a lender classifies the property. Beyond a certain acreage, or where there is any commercial or agricultural use, a residential mortgage may not be the right product at all.

Restrictions matter too. An agricultural occupancy condition, which limits who is allowed to live there, will rule out most lenders. It is rare, but it is the sort of thing that surfaces at conveyancing if nobody looked earlier.

What we would do

Look at the property before the paperwork. Construction, drainage, flood risk and any restriction on the title are the four things that decide whether a case is straightforward.

Then pick a lender that is comfortable with what you are actually buying, rather than applying to the cheapest and finding out at valuation.

Village properties, answered

Can I get a mortgage on a thatched or timber-framed property?

Usually, but from a shorter list of lenders. Non-standard construction narrows the field rather than closing it, so the lender choice matters more than the rate.

Does a septic tank stop me getting a mortgage?

No, provided it complies with current regulations and you have a clear legal right to use and maintain it. Problems arise when it is shared or sits on land belonging to someone else and nobody checks until late.

Will flood risk stop a lender lending?

Not directly. Lenders require the property to be insurable, so the issue is usually whether buildings insurance is available at a sensible price. Get a quote early.

Is a listed building harder to mortgage?

Generally lenders will lend, but they take a more cautious view because alterations need consent and repairs cost more. Expect a more thorough valuation.

Do you only cover Peterborough?

No. The office is on Eastfield Road in Peterborough and a lot of our clients are local, but we advise people wherever they are buying.

The short versionOn an older village property the construction, the drainage, the flood risk and anything odd on the title decide the lender. Send us the listing before you offer and we will tell you what it needs.
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