As a whole, the process of taking out a loan for an apartment is quite simple, as long as the apartment in question features two or more bedrooms. When it comes to granting loans for these types of purchases, banks and lenders usually have no problem doing so. However, problems begin to form when an individual wants to take out a loan in order to purchase single bedrooms, or studio styled apartments. Banks and lenders usually do not like granting loans for the purchase of these types of apartments, because, in the event of defaulting, the bank would more than likely have a difficult time earning the loaned money back through a resell of the property.

Banks and other financial institutions classify loft, studio, and one bedroom apartments as a unit or living space that does not feature a wall separating the bedroom from other sections of the living space, and are usually less than 40 square meters in size.

So for those individuals wanting to purchase a one bedroom, loft, or studio styled apartment, where do they turn to? They turn to individuals known as specialist lenders. Specialist lenders are lenders who are willing to take the risk and offer a loan to an individual to purchase such a one bedroom apartment. However, the loan they offer is accompanied by a higher rate of interest, as opposed to the interest on a loan offered by a bank.

If an agreement is made, lenders usually offer up to 80 percent of the value of the apartment. For an investor, the same amount is reserved for the, but the one bedroom apartment must be located outside of the inner city limits. The same amount also applies to low doc loans, and once again the apartment should be located outside of the inner city limits.