Mortgages for Listed Buildings: What You Need to Know Before You Buy
Dreaming of living in a historic cottage or a Georgian townhouse with original features? Listed buildings have undeniable charm, character and cultural value, but they also come with unique challenges, especially when it comes to securing a mortgage.
In this post, we’ll walk you through what it means to buy a listed property, why lenders can be more cautious, and how to give yourself the best chance of mortgage success.
What Is a Listed Building?
A listed building is one that has been placed on the National Heritage List for its architectural or historical importance. This means it is legally protected, and you cannot make alterations, extensions or demolitions without special consent.
There are three categories:
Grade I – Buildings of exceptional interest (only about 2.5 percent fall into this category)
Grade II* – Particularly important buildings of more than special interest
Grade II – Buildings of special interest (the vast majority of listed homes fall into this group)
Why Lenders Can Be Wary
Lenders do not dislike listed buildings, but they do need to manage their risk. A mortgage is essentially a loan secured against a property. If that property is difficult to alter, repair or sell on, lenders may see it as harder to recover their money in a worst-case scenario.
Here are some common concerns:
Maintenance costs – Historic buildings can be more expensive to maintain
Planning restrictions – You will need listed building consent for even minor works
Insurance – Some standard insurers will not cover listed buildings, or will charge more
Resale value – A niche market can make these properties slower to sell
Because of this, some lenders simply will not lend on listed properties. Others will, but with specific conditions.
What to Expect When Applying
If you are buying a listed home, here is how the process may differ:
Specialist Valuation
Your lender will usually require a more detailed valuation and may flag any concerns about the building’s condition, materials or compliance with heritage regulations.
Larger Deposit
It is not unusual for lenders to ask for a higher deposit, often 20 percent or more, on a listed property, especially if it is Grade I or Grade II*.
Proof of Insurance
You will need to show you can get adequate buildings insurance. Some lenders will ask for proof of this before completion.
Legal Scrutiny
Your solicitor will carry out checks to ensure all past alterations were approved and that there are no unresolved disputes with local authorities or conservation bodies.
Tips for Securing a Mortgage on a Listed Home
Work with a specialist mortgage adviser
Many high street banks have limited experience with listed buildings. At Versed, we have access to lenders who regularly work with historic and protected properties.
Be prepared to pay for a full building survey
A basic valuation will not be enough. A full survey helps highlight any structural issues, unauthorised changes or expensive maintenance work ahead.
Get familiar with heritage rules
Speak with the local conservation officer or planning department before you buy. They can advise on what is and is not permitted in the property.
Budget for ongoing costs
Listed buildings often use traditional materials like lime plaster or timber windows, which cost more to repair or replace. Factor this into your affordability.
Final Thoughts
Owning a listed building can be incredibly rewarding. These properties offer beauty, heritage and a true sense of place. But they do come with extra responsibilities, and that includes making sure your mortgage lender is fully on board.
At Versed Financial, we specialise in helping buyers navigate complex purchases with clarity and confidence. From preapproval to completion, we will help you find lenders who understand listed buildings and who will not ask you to compromise your dream home.
Thinking of buying a listed property?
Book a complimentary strategy call with Versed Financial today. We will help you secure the right mortgage for a home with history.
‘Your home may be repossessed if you do not keep up repayments on your mortgage.’