Mortgage News: Teachers Building Society Expands Support for Unusual Property Mortgages
Buying a property that doesn’t fit the standard mould can make securing a mortgage more complicated. However, a recent update from Teachers Building Society (TBS) highlights how certain lenders are continuing to support borrowers purchasing unusual property types, including homes with annexes, extended land, or converted layouts.
For buyers in areas such as London, the South East, and coastal markets like Brighton, this type of lending can make a significant difference when standard lenders decline applications. This update is particularly relevant for buyers looking for a mortgage for unusual property types in the UK, where standard lenders may have stricter criteria.
What counts as an “unusual property” for mortgage lenders?
Many high street lenders prefer straightforward residential properties because they are easier to value and sell if necessary. Properties with more complex features can therefore be harder to finance.
Teachers Building Society has highlighted several types of properties they may consider that can sometimes cause issues with mainstream lenders.
These include:
- Properties with annexes or outbuildings, whether used by extended family or let on an Assured Shorthold Tenancy (AST) or short-term rental
- Townhouses with basement flats, particularly where the basement unit is let out or held on a long lease
- Country homes with larger grounds, including woodland, paddocks, or equestrian facilities used alongside the main residence
- One-up, one-down conversions, where planning permission exists to revert the property back to a single dwelling
- Other unique residential properties that may not fit standard lending criteria
However, the lender confirmed that their lending remains residential only, meaning agricultural or commercial use properties are not eligible.
Key lending criteria from Teachers Building Society
Teachers Building Society’s specialist lending approach includes several features designed to support borrowers purchasing more complex residential properties.
Maximum loan sizes
• Up to £2 million up to 75% loan-to-value (LTV)
• Up to £1.5 million up to 80% LTV
Interest-only options
• Interest-only available up to 80% LTV
• 75% LTV where the term runs into retirement
• 70% LTV where borrowing continues in retirement
Capital repayment mortgages
• Available up to 80% LTV
Higher income multiples
In some scenarios, the lender may offer income multiples of up to 6 times income, which can be helpful for higher-earning borrowers purchasing more expensive properties.
Maximum age
• Borrowers can apply up to a maximum age of 90 at the end of the mortgage term.
Short-term product option
The lender also offers a 2-year mortgage product without early repayment charges, providing flexibility for borrowers who may want to refinance later.
Additional features that may benefit complex borrowers
Teachers Building Society also highlighted several criteria that may help borrowers with more complex income structures.
These include:
- Bonus income: up to 75% of annual or quarterly bonuses may be considered for high-earning professionals
- Investment drawdown: lenders may consider income from investment portfolios confirmed by a fund manager, even if the funds have not yet been accessed
- Manual underwriting with solution-focused teams across sales and underwriting
These features can be particularly useful for professionals with variable income, such as those working in financial services.
Why unusual properties can be harder to finance
The main reason unusual properties are more difficult to mortgage is risk from a lender’s perspective.
Lenders consider:
- How easily the property could be sold if repossessed
- How the property is used (single dwelling vs multiple units)
- Whether parts of the property generate rental income
- Planning permissions and legal titles
Because of these factors, different lenders interpret the same property very differently. This means a property declined by one lender may still be perfectly acceptable to another.
If you’re unsure whether a property would meet lender criteria, we can usually give you a clear indication quickly based on real lender policies.
Oportfolio insight
Across London and the South East we regularly see buyers interested in properties that don’t fit standard lending criteria, particularly homes with annexes, basement flats, or larger grounds. In many cases the key challenge isn’t the borrower’s income or deposit, but simply finding the right lender whose criteria fits the property. Two lenders offering similar mortgage rates may have completely different policies on unusual property types.
Example situations where specialist lenders may help
Borrowers often need specialist lender criteria when purchasing properties such as:
- London townhouses with self-contained basement flats
- Homes with Airbnb annexes or separate guest accommodation
- Rural homes with paddocks or equestrian facilities
- Converted properties with unusual layouts
- Homes with multiple titles or historic conversions
These situations often require manual underwriting and more flexible criteria.
Need help securing a mortgage on an unusual property?
If you’re purchasing a property with features such as an annexe, extended land, or a non-standard layout, choosing the right lender from the start can make a significant difference. At Oportfolio Mortgages, we work with a wide range of lenders, including those with specialist criteria for complex properties.
If you want to understand:
- Whether your property type may be acceptable to lenders
- How much you may be able to borrow
- Which lenders are most suitable for your situation
Book a quick affordability review with Oportfolio Mortgages and we’ll help you explore the available options.
If you’re also exploring borrowing levels for different property prices, these guides may help:
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