Live/work untouched by credit crunch

Live/work has survived unscathed the global credit crunch that has seen mortgage lenders withdraw a raft of mortgage packages for buy to let and residential purchases.

Nigel Denmeade, live/work expert at brokers John Charcol, today told Live Work Network: ‘We’re finding lenders are very happy to lend to people with the right business or an established business. We have 12 lenders on our books who are more than happy to do live/work for anyone looking to buy a place as their main residence.’

In favour

The current market was, he added, particularly favourable for live/work buyers. ‘They’re not paying a premium and on the last two loans we arranged the valuers commented very favourably on the properties,’ Denmeade said.

The position now, he said, was in many respects a return to much more sensible lending practices. ‘All lenders are doing is asking for properly underwritten mortgage lending.’

In a word of advice for potential borrowers he warned against ignoring credit card debts. ‘Lenders are being tougher so if someone says they’d gone on holiday when the bill came they’ll find the door closed. The golden rule is keep your credit up to date.’

Lending for self-employed people was likewise little affected. ‘They’ll probably need audited accounts,’ he noted.

The big losers were those hoping to buy live/work for buy-to-let, a practice Live Work Network has cautioned against in the past as less likely to achieve genuine live/work use of a property.

Tim Dwelly, Live Work Network director, commented: ‘This is pretty much the message we’re hearing from the USA, where lenders and buyers are seeing properties that combine business and home use as a much safer bet than those that can only support one type of use. Live/workers save time and money by cutting out the commute and they’re only paying to power one building. From a lender’s perspective, what’s not to like?’

For more on securing a live/work mortgage, click here .