Mortgages for Concrete Construction Properties

It’s important to identify which type of construction your potential property is as some are seen as safer or less risky than others.

Instructing a surveyor before you exchange contracts can help you pinpoint any of the specific risks to your potential home and take action to rectify them.

Taylor Wimpey No Fines properties were built between the 40s and 70s. They had quick turnaround times and better insulation, thanks to the lack of sand or fine gravel. However, they have been seen not to be as strong structurally as other concrete structures, which may cause issues with mortgage applications.

Obtaining a PRC Certificate from a licensed structural engineer can improve the mortgage eligibility of some concrete properties. However, not all lenders will approve properties with PRC repairs alone, and further structural assessment or certification may be required.

The average cost for a PRC certificate is between £895 and £995.

Cornish units are the most common form of concrete construction. Perhaps unsurprisingly, they are mostly found in Cornwall and were built to house returning soldiers from the Second World War. Lenders often want these properties to be refurbished under an approved scheme to extend a mortgage.

At the end of the Second World War, Woolaway built various types of houses, such as bungalows, terraced homes, and semi-detached houses. They used concrete frames and panels to speed up the construction process. Lenders will likely want a PRC certificate of completion that proves the house has been renovated.

Reema construction concrete homes were erected using PRC panels. They were popular with local councils in the 1940s, who wanted to build homes quickly to meet demand. Due to their age, they are likely to need renovation work to make them eligible for a mortgage. However, there are Reema properties from the 1960s that may not need refurbishment for a loan.

These homes look like traditional brick houses. They have bricks as an outer layer but are actually built with PRC beams. Lenders are usually happy to accept a Hawksley construction build if it has been part of a PRC homes repair scheme.

There are also a few lesser-known concrete construction properties that include:

• Airey house constructions
• Unity PRC home
• Dorran construction
• Orlit PRC
• Whitson Fairhurst PRC homes
• Wates Group PRC builds

Generally speaking, many types of concrete construction property can be made more mortgageable with repair and reinforcement work. This includes structural improvements, the removal of concrete pillars, blocks and support beams, and works to improve the property’s insulation.

In some cases, the addition of a brick ‘skin’ may be recommended to increase the visual appeal of the building and ease lenders’ concerns about resale value.

Given the number of variations of concrete homes, speaking to a broker we work with can be useful when applying for a mortgage. Thanks to their depth of market knowledge, they’ll know which lenders accept which construction type.

Yes, though it can be trickier. When combined with being a concrete construction, the options of lenders diminish for ex-council property mortgages.

It’s worth taking into account several factors which may affect your application:

The majority of ex-council properties will be leasehold. A lease with a short term will be a red flag for some lenders.

Many ex-council properties are located in high-rise buildings. Some lenders have strict height restrictions and may not lend on properties above 4–5 floors, especially in ex-council high-rise blocks. If the property exceeds this height, verify lender-specific policies with a broker.

The design of a property can affect your application’s approval. Ex-council properties sometimes have a layout that lenders view as having added elements of risk—for example, if it is very small or if the kitchen is in the living room.

To increase the chances of your application being approved, you need to consider other factors and other standard requirements from lenders that could have an impact. They are:

For a home to be acceptable for a mortgage, it will usually have to be structurally repaired under an approved scheme. However, suppose the property is semi-detached or forms part of a terrace. In that case, most lenders also require the adjoining properties to have had structural defects rectified under an approved scheme.

PRC properties of more than 2 stories in height are not usually considered acceptable to some lenders, whether repaired or not.

Some lenders accept houses and bungalows but may restrict lending on certain types of flats, especially high-rise flats or maisonettes within non-standard construction buildings.

Lenders have parameters on the ages to which they can or will lend. The minimum age is 21 in the UK, but the maximum age can vary. Some will go to 70, but others will go higher, perhaps even to 80.

Lenders consider any bad credit history issues in your past and when they occurred before determining the risk of lending to you.

Some lenders have specific forms of income that they accept. Some lenders will not consider bonuses or commissions when calculating your final loan amount, while others will happily accept them. Lenders usually use an income multiplier of 4 times to 5 times your annual income to calculate your mortgage amount, so if they accept bonuses and commissions, you’ll be able to borrow far more.

Most lenders will consider applications with a larger deposit more favourably, as this improves the loan-to-value (LTV) ratio and lowers the lender’s risk. A higher deposit could also mean access to more favourable mortgage terms and interest rates.