Mortgages For Steel Framed Houses
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What is a non-standard construction mortgage?
If you’re planning to buy anything other than a standard home that’s made from brick and mortar, a non-standard construction mortgage will be required. Properties that would be classed under this category are widely varied, and can range from precast concrete homes and thatched roof cottages as well as steel framed buildings and other more unusual properties.
Steel Framed Houses in More Detail
Steel framed houses are relatively rare and many of them were built as temporary constructions and therefore, it can be more difficult to find lenders who are willing to offer mortgages for them.
There is quite a variety in terms of the build quality of steel framed houses and therefore some are considered more reliable than others, which is largely dependent on the design. Those with less sturdy structures can undergo a fairly expensive reinforcement process to increase their structural integrity, which also makes them more mortgageable.
There are also some steel framed homes for which mortgages will be very difficult to obtain, which are known as BISF (British Iron and Steel Federation). This is due to known structural problems with the buildings.
What other things should I consider when buying a house with non-standard construction?
Maintenance on a non-standard construction property will usually be more costly than on a standard building. This depends on the exact construction materials used and whether niche suppliers and specialist contractors are needed.
The frequency of maintenance is also usually higher, due to the vulnerability of the materials used. Thatched roofs, for example, need to be completely replaced every thirty years, whereas a tiled roof would generally last much longer.
Future demand and later sale
You should bear in mind that it can be difficult to sell properties that are not traditionally constructed, given that mortgages are more difficult to obtain.
If you’re planning to renovate your property, it’s possible to change it so that it fulfills the requirements of a standard property, usually by improving the structural integrity. This makes it much more accessible to future buyers, who should be able to purchase it with a standard residential mortgage.
Insurers can be reluctant to provide cover for non-standard construction properties, which means that premiums are usually higher.
There are specialist insurers available, however, who are experienced in providing policies for this type of property and are most likely to offer you a competitive deal.
A non-standard construction property will almost always require a full and comprehensive survey, which is more costly than some of the options available on standard houses. It can also be more difficult to find a surveyor willing to authorise the mortgage. Again, this depends on the specific construction type, as this type of mortgage covers a wide variety of differently constructed houses.
Are steel framed homes Mortgageable?
Steel framed properties are certainly mortgageable, although you will need a non-standard construction mortgage to purchase one.
Does it matter when the property was built?
Applicants generally find it easier to obtain a mortgage for a more recently built steel framed home. It can be difficult to determine the age of steel framed properties, so speaking to our helpful brokers, who are familiar with the different types of steel framed homes, is advisable.
Is it more difficult to get a non-standard mortgage/are they more expensive?
It can be more difficult to find Mortgage Lenders who offer non-standard construction mortgages, however, those lenders who specialise in this area are usually able to offer mortgages for many different circumstances.
Given that lenders may offer lower Loan to Value loans on this type of property, it can be more difficult to meet the affordability criteria and deposit requirement. Higher interest rates are also common due to the perception of increased risk on the part of the lender, however, our team would be happy to help you find those lenders offering this type of product at a competitive rate.
How can The Mortgage Co help?
The Mortgage Co specialise in helping applicants who are looking to purchase non-standard construction homes. We have access to the type of independent Mortgage Lenders who offer specialist mortgages to meet your individual needs.
Our team has broad knowledge of the different types of property construction and can help guide you through the complexities of buying a non-standard home, such as listed building searches and ensuring the appropriate planning permissions are in place.