Non Standard Construction Mortgages

Why were properties built using non standard materials?

In the period after the Second World War there was a surge in the need for new properties, and builders started exploring using modern materials to quickly satisfy the need. Between 1945 and 1970 over 1,250,000 properties were built using a variety on non standard materials, with whole housing estates made in the same fashion. In some cases, on some construction types, some of the materials used have deteriorated over time, and have subsequently been classified as ‘defective’ under the Housing Defects Act 1984, and unless these properties have been through a full approved repair scheme then obtaining a mortgage is not going to be possible.

Should you consider buying a property with a non standard construction?

It depends on the type on construction, and the price you are paying for it. If a particular property type is mortgageable to most lenders, then that is one thing, but if it is a type which is only acceptable to maybe no lenders or perhaps one or two then your ability to sell that property will be hampered and you should proceed with caution.
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The first thing you need to find out is the name of the construction type, without this it is going to be really difficult to know which lenders might consider lending. You might be able to get this from the estate agent or the local council, but if you struggle then please contact us, we have built up an extensive database of property types and areas which could help.

What are the main types of non standard construction?

• Steel/Metal Framed
• British Iron and Steel Federation (BISF)
• Wooden framed
• Quikbild
• Spooner
• Rowcon
• Precast concrete
• Airey
• In situ poured concrete
• Laing Easiform
• Wimpey no fines

How much could I borrow?

In most instances, if a lender is happy to lend to a particular type of construction, then they will lend the same amount as they would on a standard construction, with the same rate of interest, and the same deposit, so you will pay no more than if you bought a standard property. You need to be aware that the lender may insist on a more in depth survey than normal to satisfy themselves that there are no major issues and we would recommend that you pay particular attention to the surveyors comments.

Need personalised mortgage advice?

Ready to get personalised advice? One of our qualified mortgage brokers will be happy to help.

We can identify the right lender for your situation and help you obtain the necessary documents for your application to be processed and offered. Please contact us here or call us on 0115 9499988.

What fees are associated with buying a property?

Valuation fee

When buying a property you want to know that the property is worth what you are paying for it, and if any repairs are needed, you can then make a decision on whether you want to proceed with the purchase and whether you want to reassess your offer to take into account any repairs needed.

Traditionally, lenders have instructed a surveyor to undertake a basic valuation, but this is now often replaced by a desktop valuation where information is gathered online on the likely value of the property. Whilst this may be acceptable to the lender, it does mean that nobody has been into the property to see and assess any particular issues. Both of these scenarios could leave you owning a property, which you may wish you had never bought, for example, structural issues or damp problems would not have been brought to your attention and you will have little chance of recovering any costs from anyone.

With some mortgages this valuation may cost you £200-£300, however in some instances it is provided free of charge. A more in depth survey is a Homebuyer or Level 2 Survey, this will cost from around £450 and will go into far more detail. This type of survey is suitable for most conventional or standard properties. For larger, more unusual properties or those in a state of disrepair there is a Full Structural or Level 3 Survey.

We would always recommend that first time buyers go for more than the basic valuation, it will help identify problems and can aid you in negotiating a lower price for the property.

Lender Arrangement fee

Some mortgages have arrangement fees and others don't. In many instances, these fees can be added to the advance, but it will mean that you are paying interest on a larger debt.

Whether it is worth paying a fee for a mortgage depends on the interest rates, the size of the mortgage and the size of the fee. Your mortgage advisor will be able to compare the deals and calculate which is the most economic route for you.

Broker fee

Your mortgage advisor may charge you a fee to undertake the research, make a recommendation and submit an application. Make sure you know what this figure is before committing to proceed.

Legal fees

You will need a solicitor or conveyancer to deal with the legal work involved in your purchase. If you would like a quote for this then please ask, as we have arrangements with a number of solicitors.

Stamp Duty

This is a tax paid when you purchase a property. Eligible first time buyers won't pay Stamp Duty on residential property purchases up to the value of £425,000. On purchases over this and up to £625,000 the tax is 5% of the amount over£425,000. Over £625,000 then normal Stamp Duty rates apply.