Whether or not you get a mortgage can depend on where you intend to purchase, Clear Property Investment has found.

A report by property portal Zoopla showed lenders - especially private banks - were compiling comparison checks before giving the go-ahead for funding, regardless of the applicant.

This means location has become a priority for many with some large cities such as Sheffield, Birmingham and Leeds costing far more in deposit terms than areas such as the South East and certain areas of North Yorkshire.

Broker Melanie Bien said: "There are many property hotspots where private banks are prepared to lend a higher proportion of the value of the property, but in other towns the resale value might not be as strong and so private banks will often lower the maximum loan available."

Another broker, Ian Gray of largemortgageloans.com told the Sunday Times newspaper he had heard of buyers in certain areas of the UK "refusing to lend altogether."

But it's not only the area that potential buyers have to worry about. The debt of their neighbours might also be a hazard. Certain credit reference areas are checking out neighbouring properties for mortgage defaults. If the area has a high number of occupants with debt difficulties, then that too will be taken into account.

Ray Boulger of brokers John Charcol explained: "There is no question that for some consumers this could be extremely important. If someone was only a couple of points out on their credit score, their postcode could be the deciding factor."

Recently building society Nationwide announced it would refuse loans for flatted property with five storeys or more. Properties near public houses or main roads could also prove difficult to secure a mortgage for - and not just with the Nationwide.

Rejected applications can accumulate too. They will be noted when it comes to re-applying for a mortgage with another company.

Meanwhile Santander and other high street lenders this week revealed they intended to switch borrowers with interest-only mortgages onto capital repayment deals. The move has been heralded with the threat of a double-dip in house prices.

Santander said clients with less than 25 per cent equity on their home would certainly be moved to capital repayments at the end of their current deal.

A company spokesman said: "If a customer wishes to move, or 'port', their mortgage to a new property we will treat it as a new application. Santander currently only offers interest only mortgages to people with at least a 25 per cent deposit.

For further information or mortgage advice please contact any of our Clear Property Investment offices.
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