Getting a Mortgage for a Bungalow

Bungalows are a desirable property type for many people, including those with mobility issues and the elderly. They can also be more environmentally friendly and cheaper to construct than standard houses and flats, as they’re easy to prefabricate.

However, that can cause problems when you’re applying for a mortgage. Lenders are often wary of any type of unusual construction and sometimes have lots of additional rules. To prepare you for the issues you might encounter, this article explains the common difficulties of mortgaging a bungalow and how to work around them.

Can you get a mortgage on a bungalow?

Yes you can. Provided your bungalow is of standard construction (i.e. it’s built of bricks and mortar and has a tiled roof), lenders will see it no differently from a house. All the high street banks and mainstream lenders offer mortgages for bungalows.

However, if your bungalow features non-standard construction, e.g. a timber frame, a thatched roof, or concrete walls, you may find it more difficult to get a mortgage. It’s still possible, but you’ll have to look a little harder for the right lender.

How to get a mortgage on a bungalow

Though it can be more difficult to get a mortgage for certain types of bungalows, your chances improve if you follow these three easy steps.

Step 1: Speak to a broker experienced in bungalow applications

If your bungalow is one of the types listed above, you need to get more information before you’re ready to make your mortgage application. You should speak to a broker with experience in this specialist area who can tell you everything you need to know.

We work with numerous brokers who deal with Dorran, Woolaway, and Colt homes so, if you’d like us to put you in touch with one of them, you can call us on 0808 189 2301 or enquire online.

Step 2: Prepare your documentation

Your broker will advise you on the documents you’ll need to share as part of your application. This might include a PRC Certificate of Structural Completion, which shows that the bungalow you are buying has been repaired and renovated with cavity walls that meet modern safety standards.

Naturally, you’ll also need the same documentation as other mortgage applicants, which includes personal identification, proof of address, bank statements, payslips, and other proof of income.

Step 3: Find the right lender

Not all lenders offer mortgages for all types of bungalows so, to avoid wasting your time, your broker will select only the ones that are most likely to approve your application. They’ll compare rates from these lenders to make sure you’re getting the best deal.

Which lenders offer mortgages on bungalows?

Around 60 lenders will consider mortgages on a timber-framed property, and around 20 will consider mortgages on a 100% timber property. These include Barclays, HSBC, NatWest, and Santander.

If you are looking to mortgage a concrete construction property that has a PRC repair certificate, you’ll have a choice of over 40 lenders. Around 20 specifically state that they will consider mortgages on Woolaway properties, including Barclays, Halifax, Nationwide, and NatWest.

There are just three lenders who currently state that they can potentially lend on non-repaired PRC homes.

These are:

• Together Mortgages
• Norton Home Loans (though LTV may be restricted to 50%)
• United Trust Bank

You can approach these lenders directly, but it would be wiser to work with a broker who specialises in this area if you don’t wish to risk a rejection, given your limited options.

The rates for mortgages are comparable with a mortgage on any other property. Rather than depending on the construction material, the rate you’re offered will depend on other factors, including the size of your deposit, the rate type you choose, and the Bank of England base rate at the time you apply.

Get matched with a bungalow mortgage specialist

We work with several brokers who specialise in mortgages on bungalows and other properties with non-standard construction. With their expertise and insight, you’re far more likely to get mortgage approval on your first application.

If you’d like to discuss your mortgage application with an expert, we’ll match you with someone who has exactly the right knowledge and experience. To connect for a free, no-obligation chat, just call us on 0808 189 2301 or make an enquiry online.