When it comes to buying a home, most people think of brick-built houses or those with sturdy stone facades. But what if your dream home is a quirky timber-frame cottage, a stylish flat-roofed bungalow, or even a concrete-panelled house? These are just a few examples of properties that fall under the category of ‘non-standard construction.’ While such homes can offer unique charm and potential cost savings, securing a mortgage for them can be a bit trickier. Understanding the nuances of financing a non-standard property is key to making your dream home a reality.
Non-standard construction properties often stand out for their originality and charm, but they also present unique challenges when it comes to financing. Lenders tend to favour conventional properties due to their predictability in terms of maintenance, value retention, and overall risk. However, non-standard homes can be incredibly rewarding to own, providing a living experience unlike any other. If you’re considering purchasing a non-standard home, it’s essential to be prepared, informed, and equipped with the right resources to navigate the mortgage market.
What Is a Non-Standard Construction Property?
A property is considered ‘non-standard construction’ if it doesn’t conform to traditional building methods, such as brick or stone walls with a tiled or slate roof. Instead, these homes may include materials like:
- Timber frames
- Concrete or steel panels
- Flat roofs
- Cob or thatch
Non-standard construction also includes properties with unique architectural designs or materials that aren’t commonly used in mainstream housing. Homes built with straw bales, for instance, or those with unusual design elements like curved walls or green roofs, fall into this category. While these features add to the character of the home, they may also make lenders cautious, as these materials can be more challenging to insure or maintain.
Some types of non-standard homes, like those with prefabricated concrete walls or asbestos roofing, can also be more challenging for lenders due to perceived risks related to durability and resale value. Properties built between the 1940s and 1960s, for example, may feature materials that were considered innovative at the time but are now seen as problematic due to wear, maintenance issues, or potential health risks.
Challenges with Getting a Mortgage
Most mortgage lenders prefer to stick with standard construction homes because these properties tend to offer predictable longevity and easier resale. With non-standard homes, lenders may be wary of structural issues, maintenance costs, or lower resale values, which can translate into limited lending options or stricter terms.
For instance, a house with a flat roof can be seen as riskier due to potential water damage, while a steel-frame property might raise concerns about corrosion. As a result, some lenders may require a larger deposit (often 25% or more) or charge a higher interest rate to compensate for the perceived risk. Additionally, the resale market for non-standard homes can be more niche, which further complicates the lender’s decision, as they need to consider the home’s marketability in the future.
Another challenge is that lenders may insist on more comprehensive surveys or inspections. These surveys are crucial to assess the structural integrity of the property, ensuring that there are no significant risks involved. Buyers need to be aware that survey costs may be higher for non-standard properties, given the need for specialist assessments. These additional costs can make the purchasing process seem daunting, but they are necessary to ensure the long-term viability of your investment.
Why Non-Standard Properties Can Still Be a Great Choice
While getting a mortgage for a non-standard construction property may present challenges, these homes can also come with many benefits:
- Affordability: Because of the perceived difficulty of securing finance, these properties can sometimes be more affordable than standard ones, giving you more space for your budget. The lower demand can result in more opportunities for buyers willing to navigate the complexities of the mortgage process.
- Unique Character: Timber-framed homes, thatched cottages, and even old cob houses have a distinct character that stands out from modern builds. If you’re looking for a home that tells a story and provides a sense of history or creativity, non-standard properties can be the perfect fit.
- Eco-Friendly Options: Many newer non-standard homes are built with sustainability in mind, using materials like timber or straw to create an environmentally friendly structure. Homes constructed from natural materials often have better insulation properties, reducing energy consumption and making them more eco-friendly. These sustainable builds are becoming increasingly popular with environmentally conscious buyers.
Non-standard properties also offer the chance to own a truly one-of-a-kind home. Whether it’s a historic building full of character or a modern, eco-friendly architectural masterpiece, these homes are anything but cookie-cutter. They provide an opportunity to live in a space that reflects your personal tastes and values, setting you apart from the typical suburban homeowner.
Tips for Securing a Mortgage on a Non-Standard Property
- Work with a Specialist Broker: A mortgage broker experienced with non-standard properties will have the expertise and network to identify lenders who are open to these types of homes. Not all lenders are comfortable with non-standard construction, but the right broker will know where to look. Specialist brokers can help you navigate the complexities of the application process and present your case in the best possible light to potential lenders.
- Be Prepared for a Detailed Survey: A thorough survey is essential when buying a non-standard home. It helps both you and the lender understand any risks involved, including maintenance requirements and structural integrity. Consider commissioning a full structural survey rather than a basic valuation, as this will give you a more in-depth understanding of the property and highlight any potential issues that could impact your mortgage eligibility.
- Larger Deposits Can Help: Being ready with a larger deposit can open up more options for securing a mortgage, as it reduces the lender’s risk. A larger deposit not only increases your chances of approval but may also help you secure more favourable interest rates. For non-standard properties, demonstrating financial stability can go a long way in reassuring lenders of your commitment and reducing their perception of risk.
- Consider Specialist Insurance: Non-standard homes often require specific home insurance. Having appropriate insurance in place will not only protect your property but can also satisfy lender requirements. Specialist insurers understand the unique aspects of non-standard properties and can offer tailored coverage that provides peace of mind for both you and your lender. It’s important to secure insurance that covers the materials and construction methods used in your home to avoid any gaps in protection.
- Highlight Positive Features: When applying for a mortgage, highlight any positive features of the property that could reduce risk. This might include recent renovations, structural improvements, or modern energy-efficient installations. Lenders may be more willing to approve a mortgage if they see that efforts have been made to improve the property’s resilience and marketability.
How We Can Help
As a whole of market mortgage broker, we understand the challenges and joys of buying a non-standard property. Whether it’s a quirky timber lodge or a flat-roofed home with a view, we can guide you through the complexities of the mortgage market and help you find a lender that understands your dream home.
Our team knows how to highlight the positive aspects of non-standard construction to lenders and has access to a range of specialist lenders who can offer competitive rates. We understand that every buyer’s situation is unique, and we’re committed to providing personalised advice that suits your needs. We work closely with our clients to ensure that all aspects of the property are presented in the best possible light, giving you the greatest chance of success in securing finance.
In addition, we have established relationships with surveyors and insurers who specialise in non-standard properties, making the entire process smoother and more efficient for you. Our goal is to remove as many obstacles as possible so that you can focus on the exciting part—turning your unique property into your dream home.
Get in Touch
If you’re considering a non-standard home, why not get in touch with us today? We’ll help you understand your options and make the process as smooth as possible, so you can focus on turning that unique house into a home. Our experienced brokers are here to answer your questions, guide you through the application process, and connect you with the right lenders and insurers for your needs. With our support, you can confidently take the next steps towards owning a home that’s truly one of a kind.
Whether you’re drawn to the charm of a timber-frame cottage, the eco-friendly appeal of a straw-bale house, or the modern aesthetic of a flat-roofed bungalow, we’re here to help make your dream a reality. Contact us today, and let’s explore the possibilities together.
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.