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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 4th December 2020*

We are often approached by people worried if they can get a mortgage on a steel-framed property.  Many have been declined for a mortgage or will be looking to get a mortgage with bad credit.

In this piece, we’ll discuss steel framed houses and provide some advice about getting a mortgage for one. If you’re looking to buy a steel-framed house, the expert advisors we work with may be able to help you.

Here’s what you’ll learn in this article:

Can I get a mortgage on a steel framed house?

It’s possible, though it will depend upon the type of steel framed house in question.

Due to problems with resale and insurance, some lenders won’t even consider steel frame house mortgages. Others will consider more ‘reliable’ kinds of steel frame construction. Others will lend on the majority of such houses.

As with many mortgage-related challenges, it’s all a matter of finding the right lender.

That said, before trying to get a mortgage on a steel frame property, you’ll want to find out exactly what kind of construction it’s made from. This can be ascertained by getting a detailed survey done first.

What deposit is needed for steel frame home mortgages?

Due to the perceived risks involved with steel framed properties, you are very likely to need a larger deposit – even with impeccable credit and high income, they may charge you a higher rate of interest to balance what they see as the risk of lending on a non-standard property, such as a steel frame building.

But what are ‘steel frame’ properties?

If you’re still unsure, this section covers the basics…

‘Steel frame’ is a relatively rare form of house construction that became very popular for a period after World War Two.

As you may imagine, ‘steel frame’ a kind of construction in which the frame of the house is made of steel, which contrasts with other house frames – which can be made of timber.

Many of these properties were built decades ago to house people displaced after the war. A large number of them were intended to be built on a temporary basis, and were never meant to be used up to today.

As such, lenders deem these properties as ‘non-standard’. Because of this, mortgages on steel framed properties can be difficult to get – but not impossible.

Not all steel framed houses are the same

There’s a lot of variety in build quality in the steel frame category. For example, the ’Wimpey No-Fines’ design has shown to be more reliable than a lot of other steel framed designs.

Unfortunately, the Wimpy style only accounts for a small part of the steel frame house market – and most of the alternatives haven’t proven to be as structurally sound.

Some steel framed properties can be reinforced

Some steel framed houses can be toughened (a process that often involves reinforcing the foundations with brick). This can result in a property that is more structurally sound (and more mortgageable) – but it can be an expensive process.

It might be harder to get insurance on a steel frame house

Due to the uncertainty around their reliability, getting insurance for a steel framed house can be difficult.

There are a few specialist lenders who operate in this space, though you might be looking at premiums that are higher than normal.

What about BISF construction mortgages?

BISF (British Iron and Steel Federation) homes make up a large proportion of the steel frame market.

Unfortunately, BISF houses are known to be one of the more structurally problematic varieties of steel framed property.

Can I get a British Iron and Steel Federation house mortgage?

As such, approaching a lender for a British Iron and Steel Federation house mortgage might be a tough ask.

Like many other steel frame properties, BISF properties can also be reinforced with brick – this is expensive, but can increase the odds of getting a mortgage on one.

As with most things mortgage-related, there are specialist lenders who better understand this market, and may be more willing to lend. The experts we work with may be able to find them for you.

Should I be concerned about resale if I have a steel framed property mortgage?

Typically, it is harder to sell a steel framed house due to the problems around insurance and mortgageability outlined above. This is worth bearing in mind if you’d be looking to sell it quickly in the future.

Can I get a mortgage on a steel frame building if I have bad credit?

Bad credit tends to restrict the number of lenders who are willing to work with you, this can be more troublesome in what is already a smaller market, like steel framed properties but there could be bad credit mortgage lenders available.

Need some help getting a steel frame construction mortgage? Speak to the experts

If you have questions and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 4th December 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.