Popular chicken restaurant could cause problems for your mortgage applications

June 22, 2017 by Brendan

Property Market

According to experts, living close to a Nando’s restaurant could make it difficult for you to obtain a mortgage.

One individual, who writes for MoneySavingExpert, claims that the proximity of the Portuguese chicken restaurant to his flat, made it difficult for him to secure a mortgage in 2013. Guy Anker states that the flat was in a newish block, was large and had a Tesco store on one side of the building and a Nando restaurant on the other, according to the Birmingham Mail. The mortgage application was initially rejected due to a retail unit being located in the block of flats. However, the lender reportedly informed Anker that they were more concerned about the Nando restaurant than Tesco.

The mortgage application was eventually approved, but demonstrates the problems which could be faced when buying a home close to commercial premises. One theory for the difficulty is that lenders prefer to give mortgages to those buying a low-rise house in a residential area, which would be easier to sell if the lender has to repossess the house. Properties located close to a pub, food or other outlet, may cause smells or noise close to homes, making them less desirable.

When searching for a home, be wary if the house is close to commercial premises, is a high-rise flat, is an ex-council home or does not have a bathroom or kitchen which is operational, even if you have plans to renovate.

CeMAP mortgage advisors can help you to find a suitable mortgage, even in difficult circumstances.