Purchasing a property with non-standard construction in the UK can be a challenge, particularly when it comes to securing a mortgage. Many lenders consider such properties high risk, which can lead to higher interest rates, stricter lending criteria, or outright mortgage refusal. However, with the right guidance and expertise, buyers and investors can successfully secure financing. In this article, we explore what non-standard construction mortgages are, the challenges they present, and how Fraser Bond can assist buyers in navigating this niche property market.
What is a Non-Standard Construction Property?
A non-standard construction property is any building that does not conform to conventional brick or stone construction with a tiled or slate roof. These properties can include:
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Timber-framed houses
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Steel or concrete-framed buildings
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Prefabricated homes
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Thatched-roof cottages
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Wimpey no-fines concrete houses
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Flat-roof properties
Due to their construction materials and techniques, these properties may have structural vulnerabilities, making lenders cautious when offering mortgages.
Challenges of Securing a Non-Standard Construction Mortgage
1. Lender Restrictions
Many mainstream lenders are reluctant to finance non-standard properties due to potential resale difficulties and structural concerns.
2. Higher Interest Rates & Deposits
If a lender does approve a mortgage for a non-standard home, they often impose higher interest rates and may require a larger deposit, sometimes up to 30-40% of the property value.
3. Insurance Complications
Insuring non-standard homes can be more complex and costly, as traditional insurance providers may not cover them due to higher risks.
4. Resale Challenges
Future buyers may also face mortgage difficulties, which can impact the property’s value and liquidity.
How to Secure a Non-Standard Construction Mortgage
1. Obtain a Specialist Property Survey
A structural survey from a qualified surveyor can help assess the condition of the property and reassure lenders of its stability.
2. Seek Specialist Lenders
Some lenders specialize in non-standard construction mortgages and offer tailored solutions for these unique properties.
3. Consider Renovation or Retrofitting
Making modifications to improve the property’s structure and materials can increase mortgage approval chances and overall market value.
4. Work with a Mortgage Broker
A mortgage broker with experience in non-standard properties can connect you with the right lenders and help negotiate better terms.
How Fraser Bond Can Help
As a leading UK property consultancy, Fraser Bond provides expert guidance to buyers and investors looking to purchase non-standard construction properties. Our services include:
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Property sourcing: Helping clients find suitable non-standard construction properties with strong investment potential.
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Mortgage assistance: Connecting buyers with specialist lenders who understand the unique requirements of non-standard mortgages.
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Valuation & surveys: Arranging professional property surveys to facilitate smoother mortgage approval processes.
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Investment advice: Providing strategic insights on long-term property value and resale considerations.
Conclusion
While obtaining a mortgage for a non-standard construction property can be more complex, it is not impossible. By working with the right professionals, securing financing becomes much easier. Fraser Bond’s expertise in the UK property market ensures that buyers, investors, and developers can confidently navigate this niche sector. Contact us today for tailored advice on non-standard property investments.
