We Compare 100's of loans from leading lenders
If you own a flat and are thinking of using it for a secured loan, there are a few factors that the lender will likely want to consider. As is always the case with a secured loan, the lender will review your eligibility, affordability and credit history. Additional criteria may also be applied depending on the type of flat you own, where it is located and any other issues that may present a challenge.
In this guide we answer some of the most commonly asked questions about getting a secured loan on a flat to give you more clarity and to help you understand if it is a suitable option for you.
A converted flat, often a former house converted into a flat is generally accepted as security for a secured loan. The lender will ask you to provide proof of ownership and that you have an existing mortgage with enough equity to use as an asset for the loan. Some secured loan lenders may have specific guidelines and criteria for using a converted flat as security, so it’s a good idea to speak with a broker or with the lender directly to find out how your property fits into their eligibility criteria.
Some lenders are happy to accept a flat in a high rise as security for a secured loan, especially if it is in a block with 6-stories or less. Whilst additional criteria (such as lift availability) may be required if you own a flat in a high-rise block with 6-stories or more, there are specialist lenders that can accept them as an asset. Ex-council flats could certainly be considered as security too, and you can read more about the eligibility requirements for these types of properties here.
Flats that are located above commercial premises – including shops – are usually accepted but in most cases we refer the application to our lenders day 1.
Some lenders may set a minimum market value and a maximum LTV as part of their loan criteria. But whilst this could reduce your access to certain types of deals, it doesn’t necessarily mean that it will be impossible to get a secured loan with the property.
For example, if you own a flat that is located above a food outlet, this could present unique challenges for some lenders. Yet other lenders may be willing to explore their options, so it is worthwhile getting in touch with a broker to discuss your situation, allowing you to get more detailed feedback about your eligibility.
If you have a flat with deck access – which is a property that can be accessed from a balcony, gallery or shared walkway that runs along the outer edge of the building – this alone shouldn’t prevent you from using it as security for a loan. There are a few other factors that the lender will want to consider, such as the construction type and the presence of any balconies or cladding with combustible materials.
Every case is unique, so it’s always worth speaking with a specialist broker who can answer any specific questions you may have about your flat. They will also have access to deals and offers that are not always available to the public, which could increase your chances of getting the loan you need.
A flying freehold property – which either overhangs or lies beneath someone else’s property (without necessarily being attached) – will usually be assessed based on how far it extends into the nearby property.
For some lenders, this typically ranges between 10-25% of the total property area. But even if your flying freehold extends further, this won’t instantly mean you are not eligible for a secured loan.
There are other factors that the lender will take into consideration, such as the market value, your affordability and credit score, so after all of this has been taken into account, the lender may still be open to offering you a loan.
You can use a leasehold property as an asset for a secured loan, but some lenders require a specific number of years remaining on the lease for it to be accepted. Some lenders set a minimum lease term at the start of the loan—for example, 75 years—while others require a minimum remaining term at the end of the loan, such as 40 years. However, if the loan is intended to extend the lease or purchase the freehold, the lease term should not be an issue.
If the remaining years on your lease fall outside of these requirements, it doesn’t necessarily mean your application will be declined. Some lenders are willing to assess your individual circumstances and structure a deal accordingly. While it may present more of a challenge, it doesn’t automatically mean the answer will be no.
Getting a quote won’t affect your credit score
Studio flats do not tend to pose many challenges for lenders when it comes to using it as a loan asset.
One element that some lenders will want to review is the size of the property. However, even if there is a size limit, or a minimum market value is required, the lender may still be open to exploring other options that can work for both parties.
Commonhold properties are quite rare, with only a small percentage of people involved with these schemes at present.
Although they are not often used as security, there are specialist lenders that are able to consider them as an asset.
Speaking with a specialist secured loan broker would be the best starting point, which will allow you to get the answers you need about your property.
Even though there may be a few more hurdles to overcome when it comes to using cross leases or Tyneside flats as loan security, there is still a chance it could be accepted as an a property type.
These types of leases are generally more complex than standard properties, as the ownership and legal aspects require more consideration.
Tyneside Flats, effectively a terraced house consisting of two flats, can cause issues for some lenders. The lease setup can also make a difference, depending on whether the property is on a North Tyneside Lease or a South Tyneside Lease.
Under a typical North Tyneside Lease, each flat owner holds the leasehold for their flat and the freehold for the other flat. In contrast, with a South Tyneside Lease, the owner of one flat generally holds the freehold for the entire building, making them the landlord of the other flat’s leaseholder. That said, we do work with lenders who can consider both property types.
.
Finding the right finance doesn’t have to be complicated – so, we’ve made the process clear and simple. Whether you’re applying for a Secured Loan, Mortgage or Bridging Finance, we’ll compare the market for the best options that meet your criteria and provide you with a fast no-obligation quote.
We work with a host of secured loan lenders, including those who specialise in providing loans that use flats as security. Our priority is finding a deal that works for you, not only in terms of the type of property you can use as an asset, but also when it comes to affordability and helping to get the best available rates. If you have a council flat, our Ex-Council Property Guide may be useful.
Our friendly team of brokers are on hand to answer any questions you have about flats and secured loans. You can get in touch with them today by calling 01656 766 158 and they’ll be more than happy to help.
If you have a question – we’d be happy to talk to you – simply call us…
(Mon-Fri 9am-8pm, Sat 10am-1pm)
See why we're rated
Helpful and Efficient
I would highly recommend Willows Finance. They helped us organise finance recently and were efficient, transparent and proactive throughout the process. They understood our needs, identified and explained the solution clearly, and helped us to seemlessly complete the application. Thank you Willows!
S Hampton
Helpful and informative staff …
Willows finance have been extremely helpful and efficient in finding me a loan, I feel I’ve had just the right amount of contact not too pushy or overbearing, however they did chase me when I was slow with paperwork etc which was not a bad thing and ended in me receiving a loan in a timely manner.
Julie
10 out of 10 service
Willow finance were great start to finish, they always answered promptly and it was so helpful that they were able to communicate via WhatsApp as I couldn’t always be available for phone calls. Willows Team was patient, answered all my questions and endeavoured to make the process as seamless as possible. I would definitely recommend Willow and would use their services again if I ever needed it!
Faultless service
Great communication and very straightforward process. Everyone I dealt with was knowledgeable and helpful and replied really quickly to any queries I had. Would 100 percent recommend.
Sarah
Helpful
Helpful, understanding and very responsive.
Laura N.
If you are looking for a company that really does put their customers first then look no further.
If you are looking for a company that really does put their customers first then look no further. Their service is second to none. A personal thank you to Willows team who helped me no end.
Nicola
LOANS ARE SECURED AGAINST PROPERTY. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED UPON IT.
Willows Finance is a credit broker not a lender using a representative panel of lenders. We work with a Panel of Lenders whose particulars will be supplied upon request to find a potentially suitable arrangement for your consideration.
For credit broking, we do not provide or offer advice or recommendation. Whichever lender we introduce you to we will receive commission from. Different lenders pay different amounts based on different commission models and interest amounts. For transparency we work with the following commission models: percentage of the amount you borrow, rate for risk (this is based on the risk profile of the proposal).
Willows Finance Limited is authorised and regulated by the Financial Conduct Authority. Our Financial Conduct Authority FCA register number is 670052. We are registered under the Data Protection Act No. Z1447660 and are a member of the Association of Finance Brokers.
Willows Finance Limited registered address is Brocastle, Bridgend CF35 5AS. Company registered in England.
Registration number 6678545. Copyright © 2025 Willows Finance Ltd
Legal
At Willows Finance we ensure your personal information is kept secure and confidential.
PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
Let us know what you're looking for today
