Non-Standard Construction Mortgages

Buying a non-standard construction property offers an attractive opportunity to enjoy a unique living experience in a home that stands out from the crowd. 

However, getting a mortgage for one isn’t always straightforward, as not all lenders will consider your application. But, with the right preparation and guidance, you’ll have a much better chance of finding a mortgage lender willing to help secure the finance you need. 

What is a non-standard construction property?

‘Non-standard construction’ is a fairly broad term that covers many different property types. However, mortgage lenders generally consider any property built using materials other than the traditional combination of brick or stone walls and a tiled or slate roof as non-standard. 

The most common types of properties that mortgage lenders tend to place into the non-standard category are: 

Timber-framed homes

Built using a timber framework and often clad in brick or plaster. Houses have been constructed for centuries using wood materials for the main structure and roofing (usually, the older they are, the more durable they’re regarded). 

Timber-framed properties are becoming more popular, particularly for rural properties such as barn conversions. However, they can be expensive to maintain and require regular treatment to protect against wood rot and insect infestation. The frames can also be prone to cracks that cause dampness and are considered a higher fire risk than standard constructions. 

Steel-framed homes

The Ritz Hotel in London is regarded as the first building constructed using steel frames (1904). Steel-framed homes became popular after World War II as a quick solution to the housing shortage. The houses built during this era were designed and constructed by the British Iron and Steel Federation (BISF).  

Steel-framed properties are considered more durable than timber ones but can be prone to rust and corrosion if not maintained properly. Poor insulation and low energy-efficiency ratings can also cause problems with this type of construction. 

Build quality on both timber and steel-framed properties can vary, which can make mainstream mortgage lenders quite reluctant to offer home loans for them, particularly BISF homes, due to well-documented structural issues that have become more evident over recent years. 

Concrete homes

Concrete was another widely used material during the post-war period. Concrete structures were precast in factories using large moulds and held together with steel mesh wiring. Concrete homes look distinctive, offer solid insulation, and are less prone to water or fire damage. 

Around 30,000 Cornish Unit houses, built during the 1940s and 1950s using pre-cast reinforced concrete (PRC), are a good example of the possible issues which can come from this type of construction with common structural defects such as cracking and steel corrosion within the concrete panelling. 

These issues can be costly to repair and make it tricky to secure a mortgage without potentially needing a large deposit. 

Flat-roofed properties

Flat-roofed properties can look quite attractive and are particularly popular in coastal areas. However, the obvious issue with these structures is the need for adequate drainage, particularly in a country that receives its fair share of rain throughout the year. This can cause problems when applying for a mortgage (and insurance). 

Thatched roof properties

Nothing looks quite so quaint and picturesque than a thatched-roof cottage. But the materials used (usually straw or reed) - and the specialist maintenance required - can be quite costly. The typical life expectancy before a complete roof replacement is needed can range from 10 to 40 years (depending on the material used). 

It’s not uncommon to find that many thatched-roof properties are also listed buildings, which can make finding a mortgage lender who can help even more difficult. 

Other types of properties which can also be classified as non-standard construction include: 

• Eco-homes. Designed with sustainability in mind, eco-homes can be built using innovative materials like straw bales or hempcrete. These homes appeal to environmentally conscious buyers but might require a more specialist mortgage lender.

• Pre-fabricated (modular) homes. Assembled on-site from pre-made sections, these homes can vary in quality depending on the materials used and the era in which they were built.

• Unusual property conversions. Property entrepreneurs now consider almost all types of buildings—churches, post offices, public houses, windmills, or farm property (Dutch Barns, etc.)—fair game for conversion into something truly unique. Planning permission and raising enough finance are usually the two biggest hurdles for these projects. 

• Single brick properties. Also known as ‘single skin’, as the name suggests, these properties are built with a single layer of bricks for external walls rather than the two layers used for standard construction. Some mortgage lenders could be put off by the potentially higher risk of damp and structural weakness often associated with single-brick construction. 

• Listed buildings. Often steeped in history, listed properties are protected by law, which means any repairs or alterations must adhere to strict regulations. These obstacles can prove to be off-putting for some mortgage lenders. 

Can you get a mortgage on a non-standard construction property? 

Yes, it’s possible, but it could be more challenging than getting a mortgage for a standard property due to the limited number of lenders willing to consider your application. The good news is there are plenty of specialist lenders who are more open to offering home loans for such properties. 

Why is it more complicated? 

Some lenders see non-standard properties as higher risk due to structural concerns or limited resale appeal. However, there are specialist lenders who are prepared to take a more tailored approach and assess each application on a case-by-case basis. 

In addition to the traditional lending requirements for a mortgage (affordability checks, credit history, etc.), a specialist lender will consider the property’s condition and future potential value, along with your understanding of the property’s unique requirements. 

Working with a mortgage broker who has prior experience of arranging home loans for non-standard construction cases can make a huge difference in securing the mortgage you need.

Will a Non-Standard Construction Mortgage Be More Expensive?

Overall costs could be higher. The perceived risk associated with these types of properties can reduce the pool of lenders willing to help. Of those available, deposit requirements can be between 20% and 25%, depending on the property type and its condition.

That said, specialist lenders with more expertise in arranging home loans for unique properties may offer competitive mortgage rates, especially if your overall financial situation is solid. Building a strong case with a large deposit, stable income, and a good credit history can help you secure a better mortgage deal.

Eligibility Requirements for a Non-Standard Construction Mortgage

Lenders will look closer at the property and your financial situation when assessing your mortgage application. Here’s what they typically consider:

• Property Condition: The structural condition of the home is crucial. A mortgage lender will likely ask for a complete structural survey of the property you’re looking to buy to identify any possible issues before the loan can be approved. 

• Your Financial Profile: A clean credit record, consistent income, and manageable debt levels will all help your case.  

• Deposit Size: A larger deposit reduces the lender’s risk and can improve your chances of approval. For non-standard construction mortgages, the typical deposit needed is usually between 20%-25%. 

• Resale Value: Lenders want to ensure the property can be sold if necessary, so marketability matters.

• Specialist Knowledge: Your application can also be strengthened by demonstrating that you understand the property’s quirks and have a clear plan for maintaining it.

To find out more, take a look at our guide: What Lenders Look For In Mortgage Applicants. 

How Much Can You Borrow for a Non-Standard Construction Mortgage?

The amount you can borrow will depend on a combination of your income and the lender’s criteria regarding the property. Most lenders base their calculations on an income multiple, usually between 4 to 4.5 times your annual earnings for standard purchases. For non-standard properties, stricter affordability assessments might apply.

For instance, if your annual income is £50,000, you could borrow up to £225,000 under normal circumstances. However, higher maintenance costs or limited resale appeal might result in a lower borrowing limit. Additionally, lenders could cap the loan-to-value (LTV) ratio (potentially between 75%-80%), requiring you to provide a larger deposit.

Non-standard construction mortgage lenders

At Haysto, we work with several specialist mortgage lenders, all with an exceptional track record of accepting mortgage applications for non-standard construction properties, including (but not limited to):

• United Trust Bank

• Together. 

• Vida Homeloans

• Kensington Mortgages

• Buckinghamshire Building Society

• Aldermore

These mortgage lenders take a more ‘hands-on’ approach and assess mortgage applicants on a case-by-case basis. Our advisors have a clear understanding of each lender’s criteria and will know which one is best suited to help with your case. 

What Else Should You Consider?

In addition to the associated costs of getting a mortgage, there are several other expenses that you’ll need to take into account when buying a non-standard construction property. 

Ongoing Maintenance

Many non-standard properties demand specialised maintenance. For example, thatched roofs need regular re-thatching, and steel-framed homes require checks for corrosion. Be sure to budget for these ongoing costs.

Resale Potential

Due to its niche market, selling a non-standard property can take longer. Before purchasing, consider whether the home’s unique features could impact its future marketability.

Insurance Challenges

Non-standard properties often need specialised insurance, which can be more expensive. Timber-framed homes, for example, are seen as having a higher fire risk, while older concrete homes may have structural concerns. 

Our Insurance Specialists have extensive knowledge of what’s required to secure sufficient cover for all types of non-standard constructions, and they’ll be able to help you find the right insurance cover for your specific needs.  

Professional Surveys

A thorough survey is essential. It will highlight potential issues, giving you a clearer understanding of the property’s actual condition and value. This can also help during price negotiations.