If you’re in the market for a new home or want to raise money on your existing property and it falls into the ‘non-standard construction’ category, then you’ll need to take out a non-standard construction mortgage. This prospect can be a little daunting, so we’ve put together this handy guide to help you understand everything you need to know.
What does non-standard construction mean when buying a house?
Non-standard construction (NSC) is a term used to describe homes built using materials or methods that fall outside the conventional. This can include timber-framed houses, concrete houses, and more. Because these homes are constructed with non-traditional methods, they can be difficult to finance with a standard
Standard construction materials typically refer to brick, slate, stone and tiles.
Non-standard construction materials commonly include timber, concrete, steel, pre-fabricated buildings, thatching and glass.
While these materials can create reliable and liveable homes, mortgage lenders view their use more cautiously than standard construction materials.
What is a non-standard construction mortgage?
There is not a specific ‘non-standard construction mortgage’, it’s more of a case of which lenders will lend upon non standard build properties and out of those lenders, what lending criteria will they apply to these property types not built using traditional methods &/ or materials. These mortgages typically come with stricter eligibility requirements and higher interest rates if you have to use a more specialist lender, but they can still be an excellent option for those who otherwise might not be able to finance their home. Commonly clients ask – can you get a mortgage on a timber framed house, or get a concrete house mortgage and the answer is Yes, however lenders will probably want a bigger deposit and the valuers comments will play a big part in the lending decision of the lender.
What are the eligibility requirements for a non-standard construction mortgage?
Eligibility requirements for a non-standard construction mortgage will vary from lender to lender, but there are some general guidelines that most lenders will follow. Typically, borrowers will need to put down a larger deposit when compared to standard build property and in some cases the lender may want to see a PRC (Pre-Cast Reinforced Concrete) certificate to evidence the required structural repairs have been carried out under the supervision of an approved inspector. Criteria can vary from lender to lender and the comments from the valuer will play a major part in the mortgage lenders decision whether to lend or not.
What are the interest rates for a non-standard construction mortgage?
While there are actionable steps you can take to improve your credit score, nothing you can do will boost your score overnight. Take steps to pay on time, pay down your debt, and ensure you are on the electoral roll at your current home.
However, if you are looking to arrange a mortgage with bad credit, you should seek help, and a specialist bad credit mortgage broker is of value. By speaking to an experienced advisor they can discuss your credit profile and highlight potential areas that could be causing an issue to your score.
Is it worth buying a non-standard construction house?
Even though the property may be non standard in build, it does not mean it is not appealing to home buyers, weighing all the pros and cons before deciding is crucial. You’ll want to consider the interest rates, eligibility requirements, and overall cost of the mortgage. Additionally, non-standard construction homes
can come with unique challenges, i.e. maintenance, so it’s essential to do your research and prepare yourself for what comes next. Taking out a non-standard construction mortgage could be the right decision for you in your efforts to step onto the property ladder.
Is it hard to sell a non-standard construction house?
Non-standard construction homes can be more challenging to finance and insure, so due to this they may be harder to sell. If you’re considering selling your non-standard construction home in the future, it’s essential to keep this in mind. You may want to consider working with an estate agent who has experience selling non-standard construction homes to enhance your chances of connecting with willing buyers.
You can also consider converting the home into a more traditional property, making it more suitable for willing buyers. For example, a property with steel frames can be reinforced, making it more robust and reliable in the eyes of mortgage lenders or obtaining a PRC (Pre-Cast Reinforced Concrete) certificate to evidence the required structural repairs have been completed. However, when placing a property on the market, remember there is significant demand for homes at this time, and you were confident buying a non-standard construction house was a good idea. Therefore, there is no reason why other buyers will not feel the same. There is no reason why you cannot sell a home which features non-standard construction, but you should at least be aware of potential challenges.
Can I get a mortgage on a timber framed house?
Yes, you can arrange a mortgage on a timber-framed house. This again would be classed as a non-standard construction build and there are lenders who will provide mortgages against timber framed properties. Traditionally timber framed houses can be more difficult to finance with a standard mortgage, however if the property was built to a high specification, high street lenders may be willing to lend alternatively there are specialist lenders who could help also.
Do all lenders offer a concrete house mortgage?
No, not all lenders offer non-standard construction mortgages, such as a mortgage for a concrete house. However, many specialist lenders provide these mortgages. If you’re interested in financing a concrete house build, it’s essential to shop around and compare offers from multiple lenders to find the right mortgage for your needs.
Can I get a non standard construction mortgage if I have bad credit?
Yes – There are specialist lenders who provide mortgages to help clients that are unable to obtain mortgages from the high street lenders due to a low credit score which may have been caused by missed payments, defaults and/or county court judgements. The interest rate you will be charged will depend upon when the bad credit was registered, the amount of the debt and if you have managed to resolve this issue or if it remains outstanding. The first step to arranging a bad credit mortgage is to get a copy of your credit report from either CheckMyFile, Experian or Equifax. You should review this thoroughly and if you feel some of the information is wrong try to resolve this with the lender.
How to explore your non-standard construction mortgage options with The Money Hub
If you are looking into taking out a non-standard construction mortgage for a property built with timber, steel, or concrete – We can help. Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.
People buy non standard build properties for many purposes such as their home, or as a buy to let. Even though it is not of standard construction the property may still be highly desirable, you just need to make sure you find the right mortgage lender to support your application.
Yes – There are high street lenders and specialist lenders that may provide a mortgage for you. The valuation report and the comments by the valuer will play a big part in the lenders decision whether to lend.