Some structural issues are considered minor and may have little impact on a mortgage application. Others can cause a lender to decline entirely until repairs have been completed. A declined mortgage does not necessarily mean the property cannot be purchased.

At AF Credit, we specialise in financing properties that mainstream lenders struggle to accept — including properties affected by structural issues, subsidence, movement, damp, fire damage, spray foam insulation and other factors that may make a property temporarily unmortgageable.

Quick answer

You may still be able to obtain a mortgage on a property with structural issues if the issue is minor, the cause is understood, repairs are straightforward and a structural engineer has confirmed the property is stable. If the structural issue is severe, ongoing or requires significant works, many lenders will refuse to lend until repairs are complete — in which case a bridging loan can often provide a solution.

What Are Structural Issues?

Structural issues affect the stability, integrity or load-bearing elements of a building. Common examples include:

Not every crack indicates a structural issue, but significant defects should always be investigated by a qualified professional before proceeding with a purchase.

Why Do Mortgage Lenders Worry About Structural Issues?

Mortgage lenders use property as security for their loan. If a structural issue affects the property's safety, stability, value, marketability or insurability, the lender's risk increases substantially.

The biggest concern is often uncertainty. A lender may be unwilling to proceed if the cause of the problem has not been identified or if repair costs are unknown. Once the issue is properly assessed and a repair strategy is in place, many lenders become more willing to engage — but this may still require specialist finance initially.

Which Structural Issues Are Most Likely to Affect a Mortgage?

Subsidence

Ground movement causing foundations to shift. One of the most common reasons for mortgage declines, particularly where movement is active or ongoing.

Structural Cracking

Large cracks, stepped cracks or widening cracks may indicate movement. Lenders typically require a structural engineer's assessment before proceeding.

Foundation Problems

Defective foundations can affect the entire structure and are closely scrutinised by lenders and their valuers.

Roof Structure Defects

Roof spread, failing trusses or structural timber damage can affect mortgageability and may require specialist reports and significant remedial works.

Unauthorised Alterations

Removing structural walls without adequate support or Building Regulations approval creates serious concerns for lenders — both structural and legal. Many lenders will decline until retrospective approval or indemnity insurance is in place.

Will I Need a Structural Engineer's Report?

In many cases, yes. A structural engineer's report is often the most important document when buying a property with structural issues. The report typically confirms:

Many lenders — and AF Credit — will not make a lending decision until they have reviewed a structural engineer's findings. The report provides the clarity needed to assess whether the issue can be resolved and at what cost.

When Do Structural Issues Make a Property Unmortgageable?

A property is most likely to be declined by mainstream lenders when:

This does not mean the property cannot be purchased — only that specialist finance may be required as a bridge to conventional lending.

What Happens If Your Mortgage Is Declined?

A mortgage decline often reflects the property's current condition rather than its future potential. Many properties become fully mortgageable once the structural issues have been investigated and repaired. This creates an opportunity for buyers who can access short-term funding to move where mortgage-dependent buyers cannot.

How AF Credit Finances Properties With Structural Issues

AF Credit specialises in lending against properties that fall outside conventional mortgage criteria. Unlike mainstream lenders, we focus on whether the issue can be understood, costed and resolved — not on declining based on the property's current condition.

We regularly assist clients purchasing properties affected by:

In many cases we simply require a structural engineer's report, contractor quotations, a schedule of works and a clear exit strategy. Where the issue can be properly assessed, we look for a way to make the transaction work.

Using a Bridging Loan to Buy a Property With Structural Issues

1
Identify the Problem

Obtain a full building survey and, where necessary, a structural engineer's report to confirm the nature, cause and extent of the issue.

2
Obtain Repair Costs

Specialist contractors provide quotations for the required structural works — underpinning, crack stitching, lintel replacement, roof repairs or whatever the engineer recommends.

3
Secure Bridging Finance

AF Credit reviews the property, repair strategy and exit route. We can consider the purchase and in some cases the cost of works within our refurbishment bridging facility.

4
Complete the Purchase

The property is acquired using bridging finance, allowing the transaction to proceed even where a conventional mortgage has been declined.

5
Complete the Repairs

The structural issues are rectified in line with the engineer's recommendations and agreed schedule of works.

6
Refinance or Sell

Once the property becomes mortgageable, the bridging loan is repaid through a residential mortgage, buy-to-let mortgage or sale of the improved property.

Example

A buyer agrees to purchase a property for £400,000. The mortgage valuation identifies significant structural cracking and recommends a structural engineer's report. The lender subsequently declines the application.

The engineer confirms the cracking relates to historic movement, now stabilised, and recommends £20,000 of remedial works including crack stitching and repointing.

AF Credit provides bridging finance to complete the purchase. Following the repairs and a structural sign-off, the property is refinanced onto a conventional mortgage — repaying the bridge and securing long-term finance at a property now valued at £440,000.

Why Properties With Structural Issues Can Be an Opportunity

Properties with structural issues often attract fewer buyers because most purchasers depend on traditional mortgage finance. Once a lender flags a structural concern and declines, the pool of available buyers shrinks dramatically — leaving the field to cash buyers and those with access to specialist finance.

The Opportunity: Buy at a Discount, Repair, Refinance

1
Buy

Acquire at a significant discount — structural concerns have removed mortgage buyers from the competition

2
Repair

Complete the structural works — with a clear report and proper costings, the repair is usually well-defined

3
Refinance

Exit onto standard mortgage finance at the repaired value — capturing the discount as equity

For experienced buyers and investors, structural issues represent one of the most consistent categories of below-market-value opportunity. The problem is identifiable, the fix is costable, and the path to refinance is clear — exactly the kind of transaction AF Credit is structured to support.

Frequently Asked Questions

Can you get a mortgage on a house with structural issues?

Yes, depending on the nature and severity of the issue. Minor defects may be acceptable to some lenders, particularly where a structural engineer has confirmed the property is stable. Significant structural problems, active subsidence or major repair requirements often require specialist finance initially, with a conventional mortgage arranged once repairs are complete.

Can you get a mortgage on a house with subsidence?

Some lenders will consider properties with historic subsidence, particularly where repairs have been completed, structural engineer sign-off is available and appropriate insurance can be obtained. Active or ongoing subsidence will typically result in a mortgage decline until movement is stabilised and remediated.

What structural issues do mortgage lenders look for?

Common concerns include subsidence, structural movement, foundation defects, significant cracking, roof spread, failing trusses, retaining wall failure and unauthorised structural alterations. The lender's valuer will flag any issues identified and may recommend a structural engineer's report before a mortgage offer is issued.

What if my mortgage is declined because of structural issues?

A bridging loan may allow you to purchase the property, complete the repairs and refinance once the issues have been resolved. See our unmortgageable property guide for a broader overview of the options available.

Does AF Credit lend on properties with structural issues?

Yes. AF Credit specialises in financing properties that fall outside mainstream lending criteria — including structural issues, subsidence, damp, spray foam insulation, fire damage and other unmortgageable scenarios. We focus on whether the issue can be assessed, costed and resolved.

Speak to AF Credit

If you've found a property with structural issues and your mortgage lender has declined the application, AF Credit may be able to help. Where the issues can be properly assessed, costed and rectified, we can often provide bridging finance to complete the purchase, undertake the repairs and refinance onto long-term funding once the property becomes mortgageable again.

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