Not all homes are of the bricks and mortar variety. If you’ve set your heart on a new home that’s just a little (or a lot) out of the ordinary, you may need a special type of mortgage. These may be referred to as non-standard build mortgages or mortgages for homes of unusual construction.
There’s a lot of properties out there that aren’t your typical brick build with a tiled roof. A mortgage for these can be referred to as a non-traditional construction mortgage , sometimes or a non-traditional mortgage. Some of these can include the impressive and unique – such as historic properties or converted lighthouses – through to homes made entirely from concrete, as well as steel frames and glass walls! High rise flats, timber frame homes and listed properties can also be considered non-standard construction.
The range of unusual construction is very wide and covers everything that is not of the standard brick construction.
If you want to buy a property that is outside of the norm, then you may need a non-standard mortgage.
The fact that you may need to find a mortgage provider who will accept a property outside their standard construction criteria can sometimes mean that you will have to pay a premium in terms of pricing. However, this all depends on the provider’s individual preferences and assessment criteria.
Some homes of unusual construction may carry higher risks that can cause the lender to be cautious about lending against that property. For example, thatched roofs – while they look great – are a significantly greater fire risk than ordinary tiling.
A historic, timber-framed manor house from the 14th century may be a rare gem, but is highly unlikely to have been built to meet modern housing safety standards. On the other hand, precast concrete buildings built just after World War II were not designed to be in use for so long and can be plagued with maintenance problems.
Non-standard builds mean that mortgage lenders cannot apply their ‘standard’ tests for assessing risk and value as good security against a loan. Consequently, the lender will have to individually assess your application, as well as undertaking specialist valuations. In addition, they will have to consider what the future value of your property might be and how much it is at risk of being damaged while there is still a mortgage outstanding.
Consequently, you will find that both your choice of lender and offers available to you will be less than for standard-build mortgages.
Almost certainly, yes. As explained above, due to the unique nature of the home you want to purchase, some lenders may not be willing to provide you with a mortgage. Those that do tend to be more specialist lenders with higher rates and might also put certain restrictions in place regarding how you use the property while they hold the mortgage on it.
There are a few types of property that you will flat out be refused any kind of mortgage for. These include:
Non-standard construction mortgages are often more welcome with smaller mortgage providers rather than the big, high street names. However, as with any mortgage product, the market can vary, with providers moving out of or into various markets for different mortgage products. That’s why we believe it is a good idea to use the services of a mortgage broker. Rather than being tied to just one lender, these professionals have an in-depth knowledge of the mortgage marketplace and which lenders are more likely to consider lending against your unique properties under the best terms.
There are several issues to be aware of when buying a home with a non-traditional construction:
There are a few rarer types of non-standard construction. These are:
While some banks and building societies will happily consider a mortgage for non-standard construction, you can save yourself a lot of leg work by using the services of a mortgage broker. A good broker will know the market and can choose lenders with whom you have the best chance of being accepted with the least restrictions.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.