Complex but rewarding, can you raise a mortgage on non standard construction properties?
Introduction to Non-Standard Construction Mortgages
Navigating the world of mortgages can be a complex endeavour, particularly when dealing with non-standard construction properties. Unlike traditional homes built with standard materials like bricks and mortar, non-standard construction properties use alternative materials and techniques, presenting unique challenges and opportunities for potential homeowners. This article aims to demystify the process of acquiring a mortgage for these unique properties, offering expert advice and insights to guide you through this journey.
What is a Non-Standard Construction Mortgage?
A non-standard construction mortgage caters specifically to properties that deviate from conventional building materials and methods. These properties include, but are not limited to:
- Steel-framed or timber-framed houses
- Properties with thatched roofs or flat roofs
- Prefabricated homes or those with modular elements
- High-rise flats and listed buildings
Understanding the nature of your property is crucial, as it affects the mortgage application process, interest rates, and other terms of your loan.
Navigating Mortgage Applications for Non-Standard Properties
The Role of a Specialist Broker
A specialist broker is invaluable in navigating the complexities of non-standard construction mortgages. Their expertise lies in:
- Identifying lenders amenable to non-standard constructions
- Assisting with specialized documentation and requirements
- Providing tailored advice based on the unique aspects of your property
Lender Considerations and Options
Lenders assess non-standard construction properties on a case-by-case basis. High street banks and niche lenders may offer mortgages on these properties, with varying criteria. For instance:
- Halifax and Barclays are known to consider timber construction and thatched roofs.
- Santander may offer mortgages for converted churches and coach houses.
However, lenders like Barclays may not lend to homes with certain precast reinforced concrete (PRC) issues.
Interest Rates and Loan Terms
Due to the perceived higher risk, interest rates for non-standard construction mortgages might be slightly higher than those for standard properties. A broker can help navigate these rates and find the most favorable terms for your situation.
Eligibility and Borrowing Capacity
Eligibility for a non-standard construction mortgage depends on several factors:
- Property type and condition
- Size of the deposit
- Your credit history and financial stability
A comprehensive property survey is often required to assess the building’s condition, valuation, and potential future risks.
Other Important Considerations
When opting for a non-standard construction property, consider:
- Property Valuation: Ensure accurate valuation by engaging experts familiar with non-standard constructions.
- Insurance: These properties may require specialized insurance policies.
- Maintenance and Resale: Consider long-term maintenance needs and the potential resale value.
Non-Standard Construction Mortgages in Scotland
The process in Scotland is similar, though the range of lenders and specific conditions might differ. A broker with knowledge of both the Scottish market and non-standard properties can provide invaluable assistance.
Conclusion
Securing a mortgage for a non-standard construction property requires a nuanced approach. By engaging with specialist brokers and understanding the unique aspects of your property, you can navigate this complex process with greater ease and confidence. Remember, each property is unique, and the right advice can make a significant difference in securing your dream home.
