How to Get a Non-Standard Construction Mortgage

While most homes fall under ‘standard construction’ – the classic bricks and mortar – there are a significant number of properties in the UK that are classed as non-standard construction, meaning anything from a modern, steel framed house to a thatched country cottage.

In this article we’ll look at non-standard construction mortgages, how they work, how much you can borrow and how a broker can help you find the best deal.

What is a non-standard construction mortgage?

A non-standard construction mortgage is, as the name suggests, a mortgage specifically for properties that aren’t of standard construction i.e. not built of either bricks and mortar or stone and with a roof made of either tiles or slate.

Non-standard construction can cover a whole host of building materials and property types, including, but not limited to:

• Steel frames
• Timber frames
• Concrete
• Prefab house or modular elements
• Thatched roofs
• High rise flats
• Flat roofs
• Listed buildings

If it’s not immediately obvious, it should say on the property details if it’s non-standard construction. Your survey will then be able to go into more detail.

Can you get a mortgage on a non-standard construction house?

Getting a mortgage on a non-construction house can be more difficult, but it’s definitely not impossible, especially with the right specialist broker in place.

The key issues with non-construction properties come from the extra inherent risk to lenders, which is why you can expect to pay slightly higher interest rates and be subject to a more rigorous application process. Anything you can do to help mitigate this risk will make it easier for you to get a mortgage, so if you’re able to put down a larger deposit for example, then this can bring down the cost and open up more options.

How a broker can help when purchasing this type of property

A broker is always a worthwhile addition to the mortgage application process but with non-standard construction mortgages they are invaluable. Anything that takes you away from a regular mortgage means fewer options, and with that come higher interest rates and stricter terms. A broker with experience in non-standard construction homes can get straight to the key issues, helping you identify the lenders who will be sympathetic to your home and bypassing those looking to make things difficult or charge you over the odds.

A broker can also help navigate any specific requirements relating to your property and help you get together any specialist documentation. If you want a mortgage for a high rise with cladding for example, your lender may ask for an ESW1 form, or if you’re looking to buy a concrete home you might be confused about how the large number of different construction methods can impact a mortgage.

Make a quick online enquiry now and we’ll assess your situation and match you with a specialist broker who can help.

Which lenders will consider applications?

Because property type can vary so hugely under the ‘non-standard construction’ umbrella, there isn’t one single mortgage product that is offered by a defined number of lenders. There are plenty of lenders however, including the high street banks, who will be prepared to consider an application, it’s just a case of narrowing the search for your circumstances. Your broker will be able to help with this.

Halifax and Barclays for example are both open to non-standard construction mortgages on a range of property types including 100% timber construction homes, thatched roofs and concrete homes. As are Santander, who will also consider mortgages for converted churches and coach houses.

Barclays does not lend to homes made from defective precast reinforced concrete (PRC) but Halifax may consider it if the property has been repaired through an approved scheme.

If you’re looking to buy a high rise flat, a lot of lenders have limits on the number of storeys in the building. Bank of Ireland for example won’t lend on buildings over ten storeys high and the Scottish Building Society caps at eight storeys.

Rates for non-standard construction mortgages tend to be slightly higher than average rates for standard mortgages, but having a broker will make sure you find the best deals.

It’s important to remember that these lenders can consider offering mortgages for non-standard construction properties but there’s no 100% guarantee that they will. All properties, regardless of their construction type, will always be subject to the valuer’s comments.

How much can you borrow?

While it’s hard to be specific with this type of mortgage, due to the nature of the properties, our calculator can give you an idea of roughly what you may be able to borrow based on your personal circumstances and the property value.

Keep in mind that this calculator is for illustration purposes only. Your broker will be able to give you a much more accurate idea of what you can borrow.

What is the eligibility criteria?

The difficulty with non-standard construction mortgages is that the property type and construction can be so different from one home and another that it’s hard to apply the same criteria across the board.

In most cases applications will be assessed on a case by case basis, with eligibility varying significantly. Flat roof mortgages for instance may be dependent on exactly what proportion of the roof is flat, with some lenders open to entirely flat roofs and others wanting to look at each case on its merits.

Other things to consider

Unusual properties and construction methods can impact finances and plans further down the line, not just at the mortgage application stage, so it’s important to consider the following implications too before deciding whether it’s worth getting a non-standard construction property.

Can you get a non-standard construction mortgage in Scotland?

Yes you can. Getting a mortgage in Scotland is a very similar process to in England and Wales, but it’s worth noting that overall there are fewer lenders offering mortgages in Scotland and some of them impose postcode restrictions, making it harder to get mortgages in some areas of the country than others.

Non-standard construction mortgages are more niche than a standard mortgage, and with fewer lenders around to choose from it may be even more difficult to find the right match if you’re buying in Scotland. Having a broker who understands the Scottish market as well as having specific experience of non-standard construction mortgages will help you find the best deals.