Banks are wary of lending for island or water access properties as fewer people are interested in buying these kinds of property.
Due to the lower demand, resale of the property can be prolonged and the banks are likely to make a loss if the property needs to be sold to recoup the debt.
In particular, vacant land is considered to be a very high risk and often cannot be financed without a substantial deposit and plans to build a house immediately.
Many island or water access properties are subject to flooding, which also increases the risk to the bank.
However, some of our lenders will consider these properties on a case by case basis.