Non-Standard Construction Mortgage – how do they work?

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Sometimes a mortgage application can be declined if the property is not a typical bricks and mortar home. It’s still possible to get a mortgage, but you will need a lender that offers loans on non-standard constructions.

What is a non-standard construction mortgage?

A non-standard construction mortgage is a loan with a lender that is happy to lend on a non-typical property. Fewer lenders offer these loans, so it’s helpful to seek mortgage advice early on in the process.

How do you identify non-standard construction?

Generally an estate agent will confirm that a building is non-standard. Standard construction is essentially any property built from brick or stone with a tile or slate roof. 

Examples of non-standard construction properties include

  • Thatched Roof Properties
  • Houses with Flat Roofs
  • Listed Buildings
  • High-Value Homes
  • Flood Risks
  • Unusual Construction Properties
  • Prefabricated Concrete Houses 

Can I get a mortgage on a non-standard construction house? 

You should be able to get a mortgage on most properties as long as you’re aware upfront that the property is non-typical. A good mortgage broker will find the most appropriate lender for the type of construction you’re interested in purchasing. 

There are a few types of non-standard home that you may not be able to get a loan on, such as 1950s reinforced concrete properties, unless they have been reconstructed safely and certified. 

Can you get a Buy to Let mortgage on a non-standard construction?

There’s no difference in residential or Buy to Let mortgages for non-standard construction. Some Buy to Let lenders will be happy to loan on specific property types. Remember that a Buy to Let mortgage requires a larger deposit and will be calculated based on rental income rather than your personal income.

Mortgages for concrete-built houses

There are various types of concrete built homes. Some of the older, wartime prefabricated homes are difficult to mortgage unless they have been rebuilt safely. 

Other more modern properties are more readily mortgaged – it will depend on the specific structure of the home.

Mortgages on timber-framed houses

There are many types of property built around a timber frame, and the details will come down to your survey. You might find that lenders want a specific survey on the timber to check for damp. Lenders are often reassured if the exterior of a timber-framed building is predominantly brick or stone.

Generally you should get a mortgage on a timber framed property, but it comes down to finding the right lender.

Mortgages on steel-framed homes

Again, whether you can find a lender will depend upon the type of steel framed house. One of the big concerns that lenders have with non-standard property is that it could be difficult to sell. Ultimately, if you don’t repay the mortgage, they need to repossess the home and sell it to recover their funds. 

Some steel framed homes are tricky to insure too, largely because some steel constructions in the past have not been structurally sound. But there are certain reliable steel frame homes that lenders are happy to use as security..

Barn conversion mortgages

Converting a barn yourself will require a different type of financing, but if you’re looking to buy an already converted barn, again you may need to shop around to find a lender. 

People often ask whether barns hold their value – and they do, like any other property. But because they can be expensive to build, especially if they are listed buildings, the original builder may not cover their costs when reselling. 

The Loan to Value may be limited on a barn conversion – an 80% Loan to Value may be the maximum borrowing you can find. 

What costs are involved with non-standard construction mortgages?

Because you may have fewer providers to choose from, which may be specialist lenders, you may find that mortgage rates are not as competitive as some of the typical high street deals. 

As mentioned earlier, you may also need a bigger deposit. It could also be worth investing in a high quality survey, too, so that everyone has a full picture of the non-standard build and any potential concerns.

How can a Mortgage Broker help?

Talk to us right at the start of your property journey, as we can help you at every step, including setting your property budget and making sure you have everything you need to secure a mortgage. 

We’ll research appropriate lenders on your behalf, in line with the property you’re interested in and your specific financial circumstances.

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