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Mortgage on a thatched house or cottage

See how you could secure a mortgage on a thatched roof property with expert help and advice

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 27, 2021

Getting a mortgage on thatched property

We’re often asked questions surrounding mortgages for thatched properties, and how this type of build will impact a buyer’s mortgage application. It is true that a thatched roof mortgage can be trickier to obtain, and as such, this type of home is deemed “non-standard”.

The good news is that the expert advisors we work with have plenty of experience with finding mortgages for homes with thatched roofs, even if you have been declined a mortgage in the past or you’re looking for a mortgage with a bad credit history.

Any property that falls outside the standard definition tends to be considered higher risk, meaning they can be harder to insure and resell.

So if you’re considering investing in a thatched property, be sure to understand the implications first:

For information about mortgages on other types of unconventional properties, consult our section on non-standard construction mortgages.

Can I get a mortgage on a thatched cottage property?

There’s nothing quite like the timeless beauty and charm of a thatched cottage, but is it possible to get a mortgage on one? The short answer is yes, absolutely – but they can be slightly more difficult to obtain.

This is due to the risk thatched cottages pose as “non-standard” constructions, meaning potentially fewer mortgage lenders and insurance providers to choose from.

So, what are the reasons for this? Read on to find out…

What are the risks with thatched roof properties?

Contrary to popular belief, thatched builds are not more likely to catch fire than other roof types. While they can be a fire hazard, the most common concern for mortgage providers is the fact that thatched roofs need re-ridging regularly.

Re-ridging is a costly process, and needs to be carried out approximately every 10 – 15 years for most properties. This means affordability could be a concern, and lenders may be more stringent with income checks and affordability requirements for thatched property loans than other mortgage types.

So, if you’re looking to invest in a thatched home, be sure to find out the following before putting an offer down:

  • When was the roof last thatched?
  • Has the roof been surveyed recently?
  • Have the chimney and electrics been thoroughly checked recently?

What other factors impact eligibility for a mortgage on a thatched property?

Income & affordability

As mentioned, affordability tends to be one of the biggest concerns for mortgage providers when lending for a thatched home. It’s for this reason that many lenders restrict the Loan to Value on a thatched property to 75%. Your income is a good indication as to whether that will allow you to keep up with your repayments for the requested loan amount.

Typically, providers impose a cap of 4.5x your annual salary when calculating how much they’re willing to loan you. While some lenders can be more generous, potentially offering x5 or x6 your salary, you may find that you are more restricted with thatched properties. It all depends on the risk your home poses as well as other factors.

Get it touch to speak to a non-standard property expert and find out more on how your income may impact your application.

Deposit

Having a larger mortgage deposit together can have a positive impact on your thatched roof mortgage application as it may open you up to a wider variety of lender options and access to more competitive rates.

While many residential mortgage providers offer up to 85% loan to value (LTV), some 90%, and a handful at 95%, profferings can be less generous for higher risk properties. Generally, the more money you put down the better rates you can expect, as lenders have more reassurance of your commitment.

Employment type

Employment status and job role can also considerably impact your mortgage application and how favourably lenders look at you. This is because some roles are deemed higher risk than others.

Say for example you’re self-employed or you’re looking for a mortgage with a temporary work contract, lenders may be more cautious than if you’ve been in a stable, full-time role for several years. This is especially significant if you’re looking for a mortgage on a non-standard build, such as a thatched roof property.

You can read more about self-employed mortgages in our guide.

Age

Older applicants are often deemed as higher risk by lenders, who often have age restrictions, shorter borrowing periods and / or loan caps in place. This is another factor which could considerably impact your eligibility for an already high-risk mortgage.

However, there are some providers out there who are happy to lend to older borrowers, and depending on how much risk is posed by the thatched property alongside other circumstances, may be more than happy to lend to you provided you meet the affordability requirements.

Bad credit history

As discussed, every mortgage provider has different requirements and eligibility criteria, and the same applies with bad credit. Generally, it depends on the recency and severity of the issue. There are however a large number of lenders willing to consider adverse credit at some surprisingly competitive rates.

If you’ve experienced any of the above want to know how it will impact your mortgage application, you can find more information on a bad credit mortgage here, or contact us to be referred to one of the bad credit experts we work with.

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Why you should speak to a whole of market mortgage broker

We’ve helped over 120,000 people find the right mortgage, even those who may have been declined a mortgage or have had bad credit history.

In fact, our customers consistently rate us 5 stars on Feefo, mainly due to our high levels of service, but also because we offer offers a 5-star service with access to expert brokers who are:

  • Whole of market.
  • Have a working relationship with all non-standard construction lenders, not just a select few.
  • Already know the lenders to go to for thatched properties as they successfully arrange these deals already.
  • Can offer bespoke advice on mortgages for thatched properties
  • OMA Accredited advisors.
  • Have completed a 12 module LIBF accredited training course.

Talk to a non-standard property expert today

If you like what you’re reading or require more information, call Online Mortgage Advisor 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 no obligation or marks on your credit rating.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the 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.

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