Ex Local Authority Mortgages for First Time Buyers

An ex local authority mortgage is a mortgage used to buy or remortgage a property originally built by a local council and later sold into private ownership. Most were sold to their occupants under the Right to Buy scheme. Lenders assess these properties on construction type and tenure alongside the usual affordability checks.

Halifax, like other major lenders, considers mortgage applications on ex local authority properties subject to its own published criteria on construction type and ownership levels.

No, not all lenders offer mortgages on ex local authority flats. Some mainstream lenders restrict lending on certain construction types or blocks with a low proportion of private ownership, which is why whole-of-market advice is useful.

Standard brick and block construction is accepted by the widest range of lenders. Large Panel System (LPS) construction is declined by many lenders, including specialists; one high street lender considers LPS houses with a satisfactory structural engineer's report, while LPS flats are commonly unacceptable. Precast reinforced concrete (PRC) houses are generally declined unless repaired under an approved scheme, and steel systems such as BISF are treated differently from lender to lender.

Ex local authority houses and flats are often larger than comparable privately built properties in the same area, which can make them attractive to home movers looking for more space for a similar budget.