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What is a non-standard construction mortgage? And how do you identify non-standard construction?

It’s easier to tell you what standard construction is – then everything else is non-standard. It’s essentially anything that’s not built of brick or stone with slate or tile for the roof.

Typical non-standard construction properties include those with thatched roofs, wooden houses like Essex weatherboard properties, prefabricated homes and large acreage properties with annexes. Flat roofs potentially can be a problem if they have a big surface area.

What does a ‘prefabricated’ house mean?

A prefabricated home is built offsite and transported and put together in sections. Thousands of prefab homes were put up in post-1945 Britain. They came up with this wonderful idea of creating prefabricated concrete buildings – a quick way to solve the housing shortage following the Blitz.

There are modern versions about today, but they’re obviously very different. Modern manufacturing has moved on massively since 1945. You see new prefabs on all of those house building TV programmes and they are of a much higher standard and last a lot longer.

The original 1945 ones were only built to last ten years, to see out the shortage – yet you can still see them around today.

How difficult is it to get a non standard construction mortgage?

It all depends. Going back to the prefab one, that would be difficult. But some of the criteria engines that we use allow prefabricated homes if they’ve been renovated. It’s possible to put a wrap around the outside which insulates it better, makes it cosmetically look a bit better but also strengthens the structure. If that work done comes with certification, then a lot of lenders – including mainstream ones – will allow that.

The mortgage broker’s worst phrase is “down to valuer comments”. That means mortgage approval depends on whether the valuer thinks the property is definitely worth what you’re paying. If that work hasn’t been done on a prefab then only a handful of lenders will look at it – not high street lenders, but specialist lenders.

On the other types of houses like thatched roofs, weatherboard etc, there are plenty of lenders out there that will look at these. It all boils down to the individual property, the condition and those “valuer’s comments”.

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Are barn conversions classed as new builds?

Again, it depends. Lenders will look at how much work’s been done and whether it comes with warranties. If you have warranties then lenders are more than happy to look at those.

Most barn conversions are going to need a lot of work to be made into a home, so yes, they would generally be classed as a new build. Lenders would want to see warranties and details of when the work was done and that it’s been signed off by the planning department.

Can you get a Buy to Let mortgage on non-standard construction?

Yes. Usually there would be the same criteria on a Buy to Let as a residential mortgage. Again, it comes down to the lender and the valuer. What they’re really interested in is whether that property is going to be re-saleable if the lender has to repossess it for any reason.

What costs are involved with non-standard construction mortgages or properties?

One difference is that you might have to pay for your valuation. The main high street lenders offer free valuations, but if we can’t approach those because of the type of construction, you might be looking at some of the smaller lenders. With certain banks and building societies you have to pay valuation fees.

There might be other product fees that you wouldn’t normally see, but to be fair to building societies, they don’t charge some of the bigger ‘product fees’ so it balances itself out.

Another cost to check out if you’re buying a non-standard construction property is the survey. I would definitely advise you to get a full structural survey or Homebuyer survey. That way, you know what you’re getting into. You will know if there are any problems, and that gives you protection. I myself bought an Essex Weatherboard house many years ago and it was a prerequisite from the lender that I had to get a full structural survey.

So there are definitely costs that you wouldn’t necessarily have with a standard property. A full structural survey could be £600 to £900 depending on the property.

How can a mortgage broker help with a non-standard construction mortgage?

A good mortgage broker will have access to plenty of lenders. We can choose from 98 lenders, from high street brands through to the more obscure lenders for properties or situations which aren’t palatable to the high street lenders.

We will also take time to answer all your questions. I have clients who email me Rightmove links or documentation for a property and just ask me to run an eye over it. I’m obviously never going to tell you whether it’s a good buy or not – that’s beyond my skills – but I can definitely answer questions about that property or suggest questions that you need to ask about it.

If it’s a non-standard construction mortgage we can help – we see properties and mortgages day in, day out.

Does it cost for an initial consultation with you?

Absolutely not. I’m always upfront with my clients – we do charge fees but those are on the mortgage you are offered.

That initial chat and building up the relationship is all free of charge. We only charge if you actually decide to go ahead with the mortgage we find for you.