For many, owning a listed building is a dream—a chance to live in a home with history, charm, and architectural beauty. But if you’re considering purchasing one, you may be wondering: Can I get a mortgage on a listed building? The answer is yes, but it comes with some unique challenges and considerations.
In this guide, we’ll walk you through everything you need to know about getting a mortgage on a listed property.
What Is a Listed Building?
A listed building is a structure legally protected due to its historical or architectural significance. In the UK, these buildings are classified into three grades:
- Grade I – Buildings of exceptional historical or architectural importance (e.g., Buckingham Palace).
- Grade II* – Particularly important buildings with special interest.
- Grade II – Buildings of national importance with historical or architectural significance.
Most listed residential properties fall under Grade II, meaning they are still highly protected but more common and accessible for buyers.
Challenges of Getting a Mortgage on a Listed Building
While obtaining a mortgage for a listed property is possible, there are several factors lenders will assess before approving your application.
- Property Condition & Maintenance Responsibilities
Listed buildings require special care. Owners must maintain them in accordance with strict regulations, which may include limitations on alterations, extensions, or repairs. Lenders may be hesitant if a property is in poor condition or requires extensive renovations.
- Specialist Surveys & Valuations
Unlike standard properties, lenders will often require more detailed surveys on listed buildings. They may request:
- A full structural survey to assess potential repair costs.
- A valuation that considers the historic nature of the property and its market desirability.
These extra steps can make the mortgage approval process more complex and time-consuming.
- Insurance & Risk Factors
Many lenders view listed buildings as higher-risk investments because:
- They may be more expensive to repair or renovate.
- Specialist insurance is required due to the unique materials and construction methods used.
- Limited alterations can impact resale value, making the property less attractive to future buyers.
Due to these risks, mortgage providers may have stricter lending criteria, require a larger deposit, or charge higher interest rates.
How to Improve Your Chances of Getting a Mortgage on a Listed Building
If you’re serious about purchasing a listed property, here are some steps to boost your mortgage approval chances:
- Work with a Specialist Lender
Not all lenders are comfortable with listed properties, so it’s best to approach those who specialise in heritage or non-standard homes. A mortgage broker can help you identify the most suitable lenders for your situation.
- Get a Full Structural Survey
A comprehensive survey will provide a clear understanding of the property’s condition, helping reassure lenders of its viability as security for a mortgage. It also ensures you are aware of any necessary repairs before committing to the purchase.
- Have a Larger Deposit
Because listed properties can be seen as higher risk, many lenders will require a larger deposit, often at least 25% of the property’s value. The more you can put down, the less risk the lender assumes, improving your chances of approval.
- Ensure Proper Insurance Coverage
Lenders want to know that the property will be protected. Specialist insurance for listed buildings is often required and can be more expensive, so factor this into your budget when applying for a mortgage.
- Understand Planning & Repair Restrictions
Listed buildings come with legal obligations, and unauthorised alterations can result in hefty fines. Before purchasing, research what work can and cannot be done and ensure you’re willing to comply with the regulations.
Best Mortgage Options for Listed Buildings
While mortgage options vary, the most common ones for listed properties include:
- Standard Residential Mortgages – Available for Grade II listed buildings in good condition.
- Specialist Heritage Mortgages – Designed for buyers of historic properties.
- Renovation Mortgages – If the property needs work, some lenders offer funds for purchase and renovation.
- Bridging Loans – Short-term financing while you restore the property to a mortgageable condition.
A mortgage broker can help you find the best option based on your financial position and the property’s specific needs.
Final Thoughts: Is Buying a Listed Property Worth It?
Owning a listed building can be a rewarding experience, offering a unique living space full of character and history. However, it requires careful consideration, both in terms of financial commitment and responsibility for upkeep.
If you’re considering a mortgage on a listed property, working with experts—including a mortgage broker, surveyor, and solicitor familiar with heritage buildings—will make the process much smoother.
How HLC Mortgages Can Help
At HLC Mortgages, we specialise in helping buyers navigate the complexities of listed property mortgages. We have access to specialist lenders who understand the unique challenges of these historic homes and can guide you towards the best mortgage solution.
Get in touch today to discuss your mortgage options and start your journey to owning a piece of history.