Back to newsletter
»
Does it matter which type of property you buy?
More than most people realise. And it matters most when you are buying for the first time.
I speak with first-time buyers often who have already fallen in love with a property before speaking to a broker. The most common reason I hear is that it was simply what they could afford. Here is what I wish they had known first.
Buying your home
If this is your first property, the stakes are higher than you think
Most people focus on getting on the property ladder. The property you start with matters more than most people realise.
Think of it as more than a home. The equity you build in your property, together with any potential growth in its value, may help provide a deposit for your next home.
Choose well and you give yourself the best chance of the ladder working as you planned. Get it wrong and you may find yourself stuck on it for longer than you hoped.
General guidance only. Property markets vary. Not financial advice.
| If you get it wrong | What it means in practice |
| Hard to sell when you want to move | Lenders may restrict a property due to its type, construction, lease length or condition. If fewer lenders will lend on it when you buy, the same issue applies when future buyers try to purchase it from you. Fewer buyers means longer on market and lower offers than you expected. |
| Hard to remortgage when your deal ends | The same lender concerns at purchase apply at renewal. You may end up with fewer options and a higher rate than you should be paying. |
| Slower equity growth | Properties with a limited buyer pool tend to grow more slowly than standard ones nearby. The equity you were counting on may not materialise. |
| Stuck on the ladder | Without enough equity to move up, the next step gets pushed further away. |
A low price is not the same as a good deal
£400,000 is not cheap. Not if the market says the property is worth £400,000.
Cheap means one thing: buying below what a property is actually worth. That is it.
Illustrative examples only. Not property valuations or advice.
| What you pay | Market value | Is it actually cheap? |
| £400,000 | £400,000 | No. That is market value. |
| £320,000 | £400,000 | Yes. 20% below what it is worth. |
So when a property is priced below similar ones on the same street, the first question is not “how do I make an offer?” It is: “why is it priced lower?”
Properties are priced low for a reason. That reason almost always affects how many lenders will offer a mortgage on it. Fewer lenders means fewer buyers. Fewer buyers means lower prices. What looks like a bargain is often the market pricing in a problem you have not found yet.
The five most common reasons a property is priced below its market value
General guidance only. Always get a full survey and speak to your mortgage broker before making an offer.
| Reason | What it means for your mortgage |
| Property type | Ex-council flats, purpose-built flats and studios have fewer lenders willing to consider them. Some cap LTV at 70–75% or refuse entirely. |
| Non-standard construction | Concrete, steel frame and timber frame properties require specialist lenders, larger deposits and typically higher rates. |
| Short lease | Below 80 years, lease extension costs rise sharply. Below 70 years, many lenders will not offer a mortgage at all. |
| Structural issues | Subsidence, serious damp and Japanese knotweed may lead lenders to refuse or impose conditions before proceeding. |
| Cladding or fire safety issues | Buildings with unresolved EWS1 certificate issues are refused by most lenders. A post-Grenfell problem that has trapped many flat owners. |
Before you fall in love with a property, ask your broker what lenders will say about it. That conversation is free. Finding out at survey stage is not.
Which property should you buy?
General market patterns only. Lender criteria varies and may change.
| Property type | Verdict | What your mortgage broker sees |
| Semi-detached or terraced house | Recommended starting point | Wider lender choice, stronger LTV options, no service charges. |
| Maisonette | Worth considering if budget is tight | Often freehold or share of freehold. Generally a stronger position than a flat. |
| Purpose-built flat | Proceed with caution | Service charges, leasehold issues, fewer lenders. Part of why they are priced lower. |
| Ex-council flat | Research carefully | Many lenders refuse or cap lending at 70–75% LTV regardless of the asking price. |
One more thing: a good broker changes what you may be able to buy
Working with a whole-of-market broker means access to hundreds of lenders, not just the ones on the high street. That matters because the right lender may allow you to borrow more, use a longer term, or structure an interest-only arrangement that keeps your monthly payment affordable and lets you buy the property that actually works for you long-term, not just the one you could squeeze into.
A short conversation before you start searching may be able to save you from making a decision you will spend years undoing.
The right first property is not the one with the best listing. It is the one your future self can sell, remortgage, and move up from.
