So, you’ve come across the term “non-standard construction” and you’re wondering, what on earth does that mean?
‘Non-standard construction’ encompasses an extensive array of property types, including listed buildings, prefabricated steel structures, properties featuring concrete or glass walls, those with thatched or eco-friendly roofs, and many more.
Obtaining a mortgage for a property that doesn’t fit the ‘standard construction’ definition can be somewhat more challenging, often requiring the assistance of a specialist lender. So, if you’re captivated by a home that stands out from the norm, keep reading.
What is non-standard construction?
You see, when we talk about non-standard construction, we’re referring to properties built with materials or methods that deviate from the typical bricks and mortar you’ll find in most British homes.
Why should you care?
Simple: non-standard construction can have implications for your mortgage, insurance, and the property’s long-term value.
These non-standard buildings frequently employ outdated or old-fashioned construction methods and materials. Throughout the 1950s and 1960s, various local non-standard properties were utilised, primarily by local authorities. These properties include structures made from materials such as concrete frames, steel frames, and concrete panels.
It’s essential to determine if a property is of non-standard construction, as it can lead to problems with mortgages, maintenance, insurance, and future sale-ability.
Examples of non-standard construction
Now, let’s talk specifics. You’ve got timber-framed houses, steel-framed properties, and prefabricated homes, to name a few. Thatched roofs and more eco-friendly materials like cob, straw, or rammed earth also fall into this category.
Quite a variety, isn’t it?
So, what does this mean for you? For starters, you might find that obtaining a mortgage for a non-standard construction property is a bit trickier. Some lenders may be more cautious, and insurance companies might charge higher premiums. Additionally, these homes can come with unique maintenance challenges and energy efficiency considerations.
And let’s not forget the potential impact on resale value.
The classification of properties into standard and non-standard categories aids lenders in assessing their risk levels. Generally, non-standard properties are perceived as carrying a higher degree of risk.
But how can you tell if a property is non-standard construction?
The estate agent should be capable of informing you whether the property features non-standard construction – houses from specific eras can be quite telling and prefabricated homes are usually simple to recognise.
Take care when buying a repossessed house as you won’t be able to ask the owner about the history or build style.
Property details often indicate if the construction is non-standard. However, in most cases, you need to depend on a property survey to obtain detailed information.
Keep your eyes peeled for clues in homebuyer surveys and valuation reports.
When in doubt, engage a chartered surveyor to give you the full picture. It’s also worth doing a bit of detective work into the property’s history to uncover any hidden surprises.
How can you secure a mortgage on a non-standard construction property?
If you’re considering purchasing a property constructed with materials other than brick and mortar, you may need to apply for a mortgage specifically designed for non-standard construction.
For lots of mortgage lenders, a ‘standard’ property construction consists of brick walls, concrete foundations, and a tiled roof.
Anything deviating from this is deemed ‘non-standard’.
As a result, a wide range of construction types can be classified as non-standard, such as:
- Prefabricated concrete structures
- Single brick construction
- Timber frames
- Steel frames
- Listed country cottages
- Thatched roofs
- Flats in high-rise buildings
- And many others…
Why is obtaining a mortgage for non-standard construction more challenging?
Mortgage providers base their lending decisions on the perceived risk posed by both the buyer and the property itself.
Numerous risks could be associated with non-standard construction, such as health and safety concerns, structural strength and durability, fire hazards, and vulnerability to water damage or flooding, among others.
Each lender’s approach will vary depending on the perceived risk related to your specific property, potentially limiting your options and making it harder to identify the right lender.
Generally speaking, non-standard properties are less in demand, which places them in a higher risk category. If you default on your repayments and the lender must repossess your home, they might struggle to recover their money and find a willing buyer.
It is also possible for some non-standard constructions to depreciate in value over time, as they get to the end of their intended life. This potential depreciation can be a concern for lenders, who may counterbalance this risk by enforcing stricter income requirements sufficient to cover ongoing maintenance costs and monthly repayments.
On occasions a property will be classed as uninhabitable by the lenders surveyor. This is not always due to how the property has been built, but because of the state of the property and its working amenities. Where the roof is dilapidated and leaking or maybe there’s no bathroom or kitchen, the main lenders will not be interested and you will need to work with a broker to obtain a mortgage.
How can a mortgage broker help?
A specialist mortgage broker can provide valuable assistance in various ways, particularly when you’re seeking a mortgage for a non-standard construction property.
Here’s how they can help:
- Expertise: Specialist mortgage brokers possess in-depth knowledge of the non-standard construction mortgage market, which enables them to guide you through the complexities and nuances of this niche segment.
- Access to lenders: They have established relationships with specialist lenders and are familiar with those who are more likely to approve mortgages for non-standard properties. This can save you time and effort by connecting you directly to the right lenders.
- Tailored advice: A specialist mortgage broker can offer personalised advice based on your unique situation and the specific non-standard property you are considering, ensuring that you make informed decisions throughout the process.
- Better deals: As they have extensive knowledge of the market and access to over 100 lenders, specialist mortgage brokers can help you secure competitive mortgage deals that cater to your needs.
- Streamlined process: They can help you navigate the mortgage application process, handling the necessary paperwork and communication with lenders, which can make the process smoother and more efficient.
- Problem-solving: If you encounter any challenges or issues during the mortgage process, a specialist mortgage broker can leverage their expertise to find solutions and overcome obstacles, increasing the likelihood of a successful mortgage application.
Connect with a specialist in non-standard construction mortgages
Locating a mortgage broker with expertise in non-standard construction mortgages can be challenging.
However, we can introduce you to an award winning independent mortgage broker who has experienced specialists waiting to help you.
You’ll be matched with a knowledgeable and experienced adviser who understands the intricacies of non-standard construction mortgages, streamlining the process and helping you secure the best mortgage deal for your unique situation.
